Risk Analysis On Construction Enterprises Bidding

Abstract:The biding price is the core in Project bidding. Many factors such as contract period, payment terms and tax requirements, the security agreement, engineering specifications, field natural conditions, local labor, equipment, supply of materials, inflation, currency fluctuations, defaults and delays and so on may cause some risk for biding. In other words, construction enterprises in the whole process of the Biding are facing enormous risk. Even though construction enterprises bid successfully, the longer-term contracts and economic uncertainty are likely to result in a loss, because the costs of completing the project may be higher than the biding price.The owner usually thinks that the bid preparation is the main factor in selecting bidder.It will influence the contracror’s biddings directly. The bid preparation is the core of project bid.The decision of bid preparation should be related with the contractor’s ability,development strategy,market conditions,and site conditions.As we know, engineering bidding is the important parts of project management. Project tender offer is a process full of uncertainty, which is affected by the scale and complexity of the project and technical content, the influence of such factors as well as the restriction of the time, resources and environment. Bidders in the process of tender offer is facing huge risk, this is not only the bidders bid after long time to perform the contract, but also the uncertainty of economic environment may be used for bidders to complete the contract which means costs are higher than bid price quotations and cause losses.The paper first introduces the theory about tender offer; the paper expounds the concept of tender offer, in the early period of the tender offer data preparation, bid price quotations of compilation basis and bid quotation preparation methods and principles. And then the paper analyses the influence factors of the risk of a tender offer, influence factors and the characteristics of bidding quotation skills. Aiming at the effects of tender offer risk factors, and the characteristics of the factors, we need to deal with risk management among tender offer. Risk management in this paper expounds the process of risk identification and risk assessment, purpose and method of risk identification, risk identification and risk assessment method of comparison.Finally, through the analysis of the tender offer risk analysis method, set pair analysis method is compared with other methods which have its unique advantages. Therefore, this article uses the set pair analysis method and fuzzy analytic hierarchy process to analyze tender offer risk. And with China first people’s hospital of new Kunming in Yunnan province hospital construction project as an example, the feasibility of set pair analysis method was verified.