Paying the Price for Construction Risk
The amount that a contractor charges an owner is the expected cost of performing the work plus a price for accepting the risk plus a markup. The prices that different contractors should...

Responsibility for Trenching and Excavation Design
To protect the lives of workmen and the public, traditional engineering and construction methods should be changed so that an engineer will explore each site, analyze each excavation and...

Pre-Estimate Cash Flow Analysis
A technique is developed for modeling the cash flow of a construction project. Alternative methods of specifying cost and earnings flows allow great flexibility in modeling a variety of...

Precast Liners May Cut Tunnel Cost 25%
On the Bureau of Reclamation's Buckskin Mountain's Tunnel in Arizona, the low bid was for $58,000,000, about $21,000,000 less than the low bid for design using...

Gates' Bidding Model—A Monte Carlo Experiment?
Recently, Gates described several simulation experiments in an attempt to demonstrate the superiority of Gates. model over Friedman.s model to determine the probability of winning a construction...

LOMARK: A Bidding Strategy
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...

Bidding Models: Truths and Comments
A carefully worked example is presented to illustrate the correct interpretation and limitations of the equation first presented by Gates for determining the probability of winning a letting....

Is There Price Collusion in the Civil Engineering Profession—
In a December 1974 U.S. District Court decision, the National Society of Professional Engineers (NSPE) Code of Ethics prohibition against competitive bidding was ruled to be a per se violation...

Estimating—State-of-the-Art
The estimator's job has been changed in the last 50 yr because of the increased size and complexity of construction projects, changes in the economy, and changes in the available...

Designing to Reduce Construction Costs
This paper describes interrelationships between engineering design, construction, and operation costs for a facility, and shows how the level of influence over those costs decreases precipitously...

Gates' Bidding Model—A Monte Carlo Experiment
The probability of winning in a closed competitive bidding situation has been vigorously disputed for ten years. In particular, the basic probability model of simultaneously beating more...

A Statement on Professional Services°Competitive Bidding
Fundamental aspects of competitive bidding procurement for consulting engineering services are considered. The writer concludes that professional bids should be considered only under normal...

Recommended Standards for the Responsibility, Authority, and Behavior of the Inspector
The standards presented in this paper are the Committee's recommendations on what the responsibilities, authority, and behavior of a qualified inspector should be. They also...

Competitive Alternative to Minority Quotas/Goals
The City of Chicago and contractors working in the city have taken a big step toward solving the affirmative-action problem. Many of the plans through which the Federal government has...

An Engineer Rebuts a Contractor's Charges of Unfair Contracts
An engineer responds to the article, Are Construction Contracts Fair, (CE, May, 1975) by contractor George A. Fox and lawyer Max E. Greenberg. Engineers should not be given additional...

Model Form of Instructions to Bidders
The Instructions to Bidders is a document used by public or private owners in soliciting bids for construction work to guide prospective bidders in preparing their bids and to prescribe...

Bidding Models — The Final Resolution of a Controversy
There has been a controversy over the correct formula to use in computing the probability of winning a contract by competitive bidding. Friedman and Gates have put forward differing views,...

Model Form of `Notice to Bidders'
The Notice to Bidders is a document used by public or private owners to notify prospective bidders that bids will be requested for performing specified work. The document contains sufficient...

Reward-Risk Ratio
Reward-Risk Ration (RRR) is a probabilistic measure of the investment quality of a venture. It is especially applicable whenever it is necessary to assume some degree of risk of loss to...

Probabilistic Approach to Estimating and Cost Control
The probabilistic nature of estimating and cost control is presented. An approach for selecting the operations within a project that can advantageously be estimated more precisely is analyzed....

 

 

 

 

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