On Bidding Strategy Of Government Investment Project

With the development of market economy, investment in the field of fixed assets has presented a diversified trend, which promotes the government investment projects combining with private investment. Based on the rules of market economy we choose contractors and suppliers by an open competitive bidding, and carry out market reforms of the bidding on government investment projects. With the threshold of "public investment" projects lowering, the bidding competition in construction market of government investment projects is becoming increasingly fierce. In order to obtain maximum profit, a few bidders use some illegal means such as stringing subscript in practices to enhance competitiveness, in addition, for the bidding of government investment projects transforms from the original plan economic system to market economic system, walkover phenomenon exist in some construction units' Bidding. Therefore, an important problem concerning the government project is: while competing in the engineering market, how participants use their wisdom to compete legitimately to get the maximum interests, and how to judge the unreasonable participator, so that the government investment funds can play the biggest role.Since the current government investment project bidding market-oriented reform is in a transition period, and that the illegal means of competition exist in bidding process, the paper discusses the project bidding content and procedure in the government investment projects, and analyzes the government investment projects' decision-making model and bidding strategy, and then researches the application of game theory on project bidding strategy, analyzes the government investment project bidding and bidding strategy by game theory viewpoint, and carries out the balanced analysis by game model. Starting form the government's point of view, this paper uses a static game theory of incomplete information model to explore the government tender's optimal strategy. The paper finally concludes that the best strategy which government investment projects use to avoid unfair competitive bidding should be to invite qualified bidders as many as possible to participate in bidding. This conclusion is used in government investment projects of Changde to Jishou expressway (Xiangxi Section) Civil engineering tender in Hunan Province, and the People's Republic of China Civil Engineering tender utilizing the Asian Development Bank loans Hunan road development project for Chadong to Jishou expressway construction works tender actual cases, which Confirms the reliability of the conclusion.The subject discussed in the paper is very helpful in the actual optimizing the government investment project bidding strategy, but the game theory model is built on the ideal situation, which means they need to be improved according to real effects in the following studies.