Correction of Bidding Errors: The Belgian Solution

by Frans Van Cauwelaert, Civ. Engr.; Univ. of Louvain, Louvain, Belgium; Dir., Assoc. sans but lucratif, VIACONTROL-HAINAUT, Mons, Belgium; Prof. of Road Construction and Soil Mechanics, Engrg. School Inst. Superieur Industriel Catholique, Mons, Belgium,
Ernst Heynig, Consultant for European Community Affairs; Brussels, Belgium; formerly, Dir. General of the EC Council of Minister's Secretariat, Brussels, Belgium,

Serial Information: Journal of the Construction Division, 1979, Vol. 105, Issue 1, Pg. 13-23

Document Type: Journal Paper


On the basis of data banks, a statistical method has been developed to calculate: (1)The minimum error total price, which is the price that includes the smallest error with regard to the technical aspect of the project, as well as the appreciation of the economic situation in the field of public bidding; and (2)the total price under which the bidder, under normal conditions, could not achieve the work without running important financial risks, or in other words, the price under which the bidder's competitive behavior can no longer be considered to be normal. A special procedure enables contractors, members of a cooperation agreement, to partially correct their calculated price before putting in a bid. This procedure is conceived in order to maintain competition between bidders. The cooperation agreement has been notified to the European Community's anti-trust department.

Subject Headings: Pricing | Errors (statistics) | Bids | Team building | Agreements and treaties | Economic factors | Public health and safety | Financial management

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