Research On The Game Of Tender Offers In The International Engineering Project

At present, the competition of international engineering project bidding is becoming increasingly fierce. Engineering project bidding is established late in China. The bidders of our country are lack of experience on the aspect of project bidding and have no effective tender offers system. Therefore facing the numerous bidders with strong power, our bidders can't score a success by the method of systemic tender offers.Based on our bidders'problem above in the market of international engineering project, it is analyzed the main links of tender offers, used the existing bidding models for reference and established universal bidding model in this paper from the angle of bidders on the basis of game theory. The region of optimal offer is determined as well as the formula of optimal offer. According to the unknown variables in the formula, a sub-model is introduced to work out the variables. Finally, the price needs to be optimized by adjustment model. Furthermore, the bidders should make sure the final offer according to the actual situation. A representative real example is chosen to ensure the tender offer and test the effectiveness and operability of the model.The conclusions are that 1) It is found that Chinese bidders are lack of effective bidding decision-making and method after analyzing the main points of tender offers in the international engineering project and the situation of China project bidding; 2) It is established the systemic bidding model on the basis of integrating and improving the existing bidding models. While the process of offer is simulated by real example, it is verified that the bidding model could help the bidders do the decision-making on tender offers; 3) From the angle of bidders to research on the game among bidders, tender-inviters and other competitors, the result is more operational and meaningful. This paper is conductive to the bidders to optimized their tender offers and strengthen the competition power in the market of international bidding.