Research On Optimization Of Construction Project Bidding Mechanism Based On Related Value

In China’s construction projects,bidding is widely used as a trading mechanism.The purpose of setting up the bidding mechanism is to give full play to the competition mechanism,so that the market subjects can compete fairly under equal conditions,survive the fittest,and optimize the allocation of resources.Compared with other transaction mechanisms,project bidding has some obvious advantages.First,under the bidding mechanism,the advantages of contractors can be compared intuitively,and corresponding contractors can be selected according to their own needs;Second,in order to bid successfully,the contractor will try to reduce the profit,so that the bid inviter can build the project at a relatively low price;Third,in order to make their quotations more competitive,the Contractor will focus on technical innovation,promote the scientific and technological development of construction projects,and form a virtuous circle.In the quotation link of construction project bidding,if the market mechanism is effective and all investors are rational,the construction project bidding will go on smoothly.However,occasionally something goes against one’s wishes.One of the common problems is that the quotation is lower than the cost.Occasionally,the auction price is much higher than the item in the auction.In bidding activities,if you want to bid rationally,you must first obtain sufficient and reliable information to make a rational judgment on the expected value of the subject matter.In the absence of synergy or internal information,acquirers identify potential target companies to evaluate them,and believe that they can more accurately estimate the value of the acquisition target than the market.They often bid when the evaluation exceeds the market value,and fall into the winner’s curse.The theory of information asymmetry holds that sufficient and reliable information is a necessary condition to avoid the winner’s curse.Because the buyer has less information than the seller in the transaction,it is easy to overestimate the value of the subject matter.After the winner curse phenomenon occurs in the construction project bidding activities,the bid winner may,in order to reduce the cost,go through a series of illegal means,causing potential risks to the Employer and project users.For example,in order to reduce the construction cost,the materials reported in advance will be replaced,so that the actual quality of the project is lower than the expected quality,and the project life and use intensity will be greatly reduced.In order to reduce the labor cost,the construction company made unreasonable adjustment on the labor intensity,which may cause the loss of workers’ rights and interests and increase the risk of social stability.It can be found from the above behaviors that the quotation is lower than the cost,which not only makes the construction party suffer losses,but also damages the interests of the z-tree,other bidders,the construction industry and even the country.Therefore,this problem needs to be solved urgently.As a result,China’s bidding will fall into a dilemma,that is,no matter which bidding method is selected,the whole process of the bidding will be the output result of the lack of project investment control right.The contractor in the bidding process cannot fully play the role of the bidding process.The original intention of setting up the bidding system is to fail to improve the network resources.In order to solve the above problems,the specific research direction and the whole process of this paper include the following four parts:(1)The phenomenon that the quotation is lower than the cost in the construction project bidding is analyzed as the corresponding quotation behavior according to different information signals.The British auction model in the auction mode is introduced as the basis for analysis.On this basis,we make our own model quotation function.(2)In the context of related value,different quotation modes are analyzed for two different situations,namely,the mining right model and the signal average model.According to the relevant quotation given by the bidder according to the signal under different quotation modes,the related value is derived.The equilibrium solution is analyzed with the associated value model.(3)Study the quotation model of construction projects to determine the possibility of the event that the quotation is lower than the cost under the related value.At the same time,the quotation function is constructed to confirm the accuracy of the quotation function model.The distribution of equilibrium bid deviation observed in the two treatments is analyzed and compared.(4)Use z Tree software to conduct data simulation experiment and mechanism design.Corresponding solutions are given for specific signal quotation behaviors.By optimizing the possible deviation in bidding,the possibility of quotation lower than cost can be alleviated.Through the above research,we can draw a conclusion that after the introduction of associated value,the bidding quotation model of optimized payment method has a very obvious inhibition effect on the phenomenon that the quotation is lower than the cost in the construction project bidding activities.We can solve the problem that the quotation is lower than the cost in the construction project bidding by optimizing the bidding path.This paper has made the following research innovations in the mechanism design:First,it discusses the strategic mechanism for bidders to formulate bidding strategies in the bidding process of construction projects with the help of the theory of associated value auction.Starting from the characteristics of actual construction project bidding,it introduces the theory of associated value into the bidding process of construction projects,and uses the research method of game theory,Try to provide a way to solve the problem that the quotation is lower than the cost.Second,on the basis of previous studies,according to the characteristics of construction project bidding,the transaction cost is included in the bid inviter’s business objectives,a bidding model is established,and a prevention mechanism based on sincere quotation and non minimum payment rules is designed.