LOMARK: A Bidding Strategy

by Richard Louis Wade, Lieutenant; Civ. Engrg. Corps, U.S. Navy,
Robert B. Harris, (F.ASCE), Prof. of Civ. Engrg.; Univ. of Michigan, Ann Arbor, Mich.,


Serial Information: Journal of the Construction Division, 1976, Vol. 102, Issue 1, Pg. 197-211


Document Type: Journal Paper

Discussion: Gates Marvin (See full record)
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Abstract: Current competitive bidding strategies and their deficiencies are reviewed. A new bidding strategy method (LOMARK) is presented for use by small to medium-sized contractors working in the local market environment. The method estimates an optimal markup by predicting the chances of winning future bids by treating the local market structure as a single system. Some advantages of the LOMARK method are that it: (1) Assumes implicit dependency between bids; (2) expands the data base for beating a given set of major competitors; (3) varies the percentage markup based on the probable known competitors; (4) is easy to understand; (5) does not require operation by digital computer; and (6) assumes a business strategy. Since LOMARK is not a sequential bidding model, it can not be used in deciding which jobs to bid in the future.

Subject Headings: Bids | Contractors and subcontractors | Databases | Business administration

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