The Judgement And Prevention On Whether Bidding Price Below Its Cost

According to the 33th article in the "Bidding and Tendering Law of the People's Republic of China", the research actuality is analyzed and more research is needed to be done according to actuality. First, relation between cost and price is discussed and the conclusion that cost is the lowest limit of price is educed. Second, cost is analyzed from various angles and conclusion is made that the cost in this dissertation is accountant cost, individual cost and general cost. Third, uncertainty of cost is researched on and it submit to random distribution. On this basis, probabilistic model is established to judge whether bidding price under cost or not. And judging criteria are given according to two different bid evaluation methods. The most advantage of the model is its judging foundation is probability of bidding price.The ultimate intention of judging whether bidding price under cost or not is to prevent bidder whose bidding price is under cost from winning of bids. So integrative measures are advanced to prevent such situation. And measures adopted by government and tenderer are included.