Incorporating uncertainty in competitive bidding
Incorporating uncertainty in competitive bidding
This paper describes a simple, transparent approach for developing competitive bids, based on an appreciation of cost uncertainty and estimates of the probability of winning with different levels of bid. The process offers an ‘applied’ approach which facilitates an iterative approach to bid development and appropriate consideration of important qualitative factors which are difficult to model. The process is illustrated with a case example which has been well received by practitioners as a teaching case. The focus of the paper is on the careful structuring of issues which lend themselves to quantification, and the facilitation of systematic consideration of issues which do not.
competitive bidding, modelling, methodology, risk
337-347
Chapman, C.B.
a4f4805b-b67d-4c4c-856b-78e01a2c89a0
Ward, S.C.
ac1bf683-4186-44e7-9f5e-4193ee4d03cd
Bennell, J.B.
38d924bc-c870-4641-9448-1ac8dd663a30
2000
Chapman, C.B.
a4f4805b-b67d-4c4c-856b-78e01a2c89a0
Ward, S.C.
ac1bf683-4186-44e7-9f5e-4193ee4d03cd
Bennell, J.B.
38d924bc-c870-4641-9448-1ac8dd663a30
Chapman, C.B., Ward, S.C. and Bennell, J.B.
(2000)
Incorporating uncertainty in competitive bidding.
International Journal of Project Management, 18 (5), .
(doi:10.1016/S0263-7863(00)00013-2).
Abstract
This paper describes a simple, transparent approach for developing competitive bids, based on an appreciation of cost uncertainty and estimates of the probability of winning with different levels of bid. The process offers an ‘applied’ approach which facilitates an iterative approach to bid development and appropriate consideration of important qualitative factors which are difficult to model. The process is illustrated with a case example which has been well received by practitioners as a teaching case. The focus of the paper is on the careful structuring of issues which lend themselves to quantification, and the facilitation of systematic consideration of issues which do not.
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Published date: 2000
Keywords:
competitive bidding, modelling, methodology, risk
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Local EPrints ID: 35790
URI: http://eprints.soton.ac.uk/id/eprint/35790
ISSN: 0263-7863
PURE UUID: 033281aa-2ca0-4701-8410-283e53b16b1c
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Date deposited: 26 Jul 2006
Last modified: 15 Mar 2024 07:54
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Author:
S.C. Ward
Author:
J.B. Bennell
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