Research On Tender Pricing Of Asian Development Bank Loans Bidding Project In Sri Lanka

Being a modern competition method and by the advantage of being both fair andefficient, tendering is popular in worldwide. However, tender pricing is always in thedilemma of how to balance Wining Probability and Profit Margin. Affected by multipleuncertain factors, such as situations or strategies of tender himself, insufficientinformation of competitors, how to pricing in a most reasonable way confused manytenders and have been warmly discussed among relative researchers. Focusing on thiscomplicated issue, this paper try to discuss and analysis in a objective way.Firstly, aiming at the target of “how to win a bid on the basis of with bothreasonable profit and maximum winning possibility by making a suitable tenderingproposal under condition of limited information”, author studied, introduced andanalyzed relative theories, which include Construction Cost theories, SWOT theories,bidding and tendering theories, tender pricing theories, etc. Taking a real internationaltendering project as example, author established a practical pricing model.Starting from the categorical and definite information, author explored moreemployer’s preferences aside of their bidding files. Took both the bidding files’requirements and employer’s preferences into consideration, tender could make asuitable technical proposal to satisfy the employer mostly. Then the cost of the tendercould be calculated accordingly.In the next step, SWOT analysis among we and competitors could help to find outour advantage/disadvantage situation in this competition. The uncertain factors could besimply quantitatively analyzed by the tools of CPM (Competitive Profile Matrix),POWER SWOT, Expert Scoring to the employer’s preference, etc.Further, draw Winning Possibility Curve and Profit Margin Curve basing on abovementioned cost data and quantitative research. The crossing point of the two curves,defined as “Best Balanced Point”, could lead to the best pricing conclusion.Finally, the theoretical best pricing conclusion could be adjusted according to thetender’s actual strategy and risk analysis to the unknown and uncertain factors. Adjustedquotation shall be the most suitable proposal with maximum ideal price.