Bidding Strategy in Construction Public Procurement: A Contractor’s Perspective

A contractor’s ability to prepare a competitive bid for a construction tender is crucial for its survival on the market. The bid price estimation strategy should promote the probability of winning a sufficient amount of tenders but, at the same time, ensure the economic stability and development of...

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Bibliographic Details
Published in:Buildings (Basel) 2021-01, Vol.11 (2), p.47-15
Main Authors: Hanák, Tomáš, Drozdová, Adriana, Marović, Ivan
Format: Article
Language:English
Subjects:
bidding strategy
Bids
Construction
Construction costs
construction project
contractor
Contractors
cost estimation
Decision making
Documentation
Multiple criterion
Prices
Procurement
public procurement
Statistical analysis
Statistical methods
Strategy
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Summary:A contractor’s ability to prepare a competitive bid for a construction tender is crucial for its survival on the market. The bid price estimation strategy should promote the probability of winning a sufficient amount of tenders but, at the same time, ensure the economic stability and development of the company. This paper aims to address this issue in the area of Czech public construction procurement. The opinions, experiences and practices of contractors were collected through a questionnaire survey, and the data were evaluated with the support of statistical methods. This revealed that Czech contractors mostly base their multicriteria bidding strategy on cost-oriented pricing while considering various aspects such as the risks and attractiveness of the tender. The Czech construction market is generally perceived as oriented toward low costs, and with a relatively common occurrence of abnormally low bids. The findings presented in this paper may help contractors improve their current bidding strategies in public construction procurement.
ISSN:2075-5309
2075-5309
DOI:10.3390/buildings11020047