Highway Engineering Bidding Strategy Research

The dilemma of highway engineering competitive bidding is to bid low enough to win the contract but high enough to make a profit. To solve the problem, likelihood and statistics were used in this paper to decide maximum mark-up based on the collected data, and then the bidding price was determined. This paper discussed the redistribution of the unit price by using unbalanced bidding skills in order to increase contractor抯 benefits. A benefit comparison model was developed and solved by computer to analyze the unbalanced bidding caused by project quantity, and then the running result was explained. The advantages and disadvantages of some risks analysis methods were compared. Since risk analysis plays an important role in competitive bidding, a method based on considering stochastic and fuzzy characteristics of risk was applied to quantify risks caused by fulfilling the contract. As for unbalanced bidding risk analysis, the model running results in some cases was demonstrated by using the quantities as random variables. Some measures of risk treatment were also presented. Finally, a case analysis using above approaches was demonstrated.