Bidding Strategy Using Multiple Regression

by Robert I. Carr, (M.ASCE), Assoc. Prof.; Dept. of Civ., Environmental, and Architectural Engrg., Univ. of Colorado, Boulder, Colo.,
John W. Sandahl, Principal; Sandahl Inc., Construction Associate, Cheyenne, Wyo.,

Serial Information: Journal of the Construction Division, 1978, Vol. 104, Issue 1, Pg. 15-26

Document Type: Journal Paper


Multiple regression analysis is applied to construction competitive bidding to give a contractor new insights that will help him compete more effectively. Data from 48 projects bid by a contractor are collected and analyzed. Two models are developed, one for use in deciding whether or not to estimate and bid a job and one to aid in his markup decision. Expected value criteria are applied to both decisions. The proposed two-phase bidding strategy is demonstrated on two jobs and problems in the contractor's competitive position are diagnosed using the model. Practicalities of model development for other contractors are considered.

Subject Headings: Contractors and subcontractors | Bids | Regression analysis | Data collection | Diagnosis

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