Standard Deviation of Bids for Construction Contract Auctions

Ballesteros‐Pérez, Pablo; Skitmore, Martin; Cerezo-Narváez, Alberto; González-Cruz, Ma Carmen; Pastor-Fernández, Andrés; Mateo, Manuel Otero

doi:10.1061/(asce)co.1943-7862.0002118

Cited by 7 publications

(2 citation statements)

References 51 publications

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“…Overall, resorting to lognormal distributions modelling the bidders' bids was both representative and convenient. It was representative as it has been studied that most bids distribution in construction auctions closely resemble lognormal distributions (Ballesteros-Pérez & Skitmore, 2017; Baek & Ashuri, 2019;Ballesteros-Pérez et al, 2021). But it was also convenient, as these distributions allowed the authors to easily modify the bidders' behavior at will and generate multiple disparate samples of auction datasets.…”

Section: Proportionality Assumption Checkmentioning

confidence: 99%

Medición de la hipótesis de riesgos proporcionales en el modelo de licitación de Gates

2023

Proceedings From the International Congress on Project Management and Engineering

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Gates' bidding model allows anticipating the probability of submitting the lowest bid in a future auction. Despite its relative simplicity, this classical model has been shown to outperform many other bidding models in real auction settings. However, Gates' model is accurate if, and only if, bidders' bid probability distributions are from the proportional hazards family. Unfortunately, checking this assumption in practice is difficult ex-ante (before the auction takes place) due to limited access to similar previous auctions' information. In this paper we propose an approach to quantitatively measure the tenability of the proportional hazards assumption in real auction settings. By resorting to Monte Carlo simulation, we develop a method to measure the consistency of the pairwise probability matrix that stores the probabilities of every bidder individually underbidding each other. Application of our method will allow bidding decisionmakers to assess Gates' forecasts reliability for upcoming auctions.

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Section: Proportionality Assumption Checkmentioning

confidence: 99%

Medición de la hipótesis de riesgos proporcionales en el modelo de licitación de Gates

2023

Proceedings From the International Congress on Project Management and Engineering

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“…In the Czech Republic, certification systems are used primarily for private sector buildings. There is no government regulation or tool to evaluate the proposed solution in relation to the investment costs incurred to the operating costs and which also addresses environmental sustainability , Ballesteros-Perez 2021, Machova, 2022.…”

Section: Introductionmentioning

confidence: 99%

A Tool for Evaluating Public Procurement in the Context of Life Cycle Costs

Macek¹

2023

IJOES

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The paper deals with the issue of selection procedures. The goal is to show how it is possible to incorporate a view of life cycle costs into the tender process, and not only deal with the aspect of investment costs. The paper is proposed by the Life Cycle Cost Inspector (LCCI). LCCI divides investment opportunities into individual components with their own operating characteristics and costs, allowing for a clear comparison of different investment alternatives. The tool considers acquisition costs, operating costs, and disposal costs over a specific period. LCCI also allows for reverse evaluation, where investment costs are modified based on efficiency. The tool's universality enables its use across various sectors, not just the construction industry. The author aims to shift public practice from tendering "on price" to "tendering on quality" by providing a simple methodology for comparing investment options based on the entire life cycle costs. The application is based on the Building Cost Information Service (BCIS) standard issued by the Royal Institution of Chartered Surveyors (RICS).

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Bidding for B2B or B2G tenders: toward the adoption of pricing models in practice

Herrmann,

Cobo Martín

2024

Manag Rev Q

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This study investigates the lack of adoption of pricing models for tenders in business-to-business (B2B) and business-to-government (B2G) markets. We aim to identify the gaps between research and practice and propose a future research agenda to bridge these gaps. Our study contributes in three ways: First, we outline how our research agenda can influence the adoption of pricing models across specific practitioner roles in tendering. Second, we introduce systematic science mapping (SSM) as a novel methodology for literature reviews. SSM combines a systematic review and science mapping in a multi-stage, mixed-methods research design. We chart the evolution of 1042 research publications from 1956 to 2022 into three thematic areas. Our review of 163 gray literature publications reveals seven schools of thought on tender price modeling and the causes of theory-to-practice gaps. Finally, we introduce a new metric, the mapping factor (MAPF), as a robustness indicator for systematic literature reviews.

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Standard Deviation of Bids for Construction Contract Auctions

Cited by 7 publications

References 51 publications

Medición de la hipótesis de riesgos proporcionales en el modelo de licitación de Gates

Medición de la hipótesis de riesgos proporcionales en el modelo de licitación de Gates

A Tool for Evaluating Public Procurement in the Context of Life Cycle Costs

Bidding for B2B or B2G tenders: toward the adoption of pricing models in practice

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