Civil Engineering ETDs

Publication Date

6-5-1967

Abstract

Competitive bidding is an intriguing, unique, and sometimes critical activity of management. In the construction industry competitive bidding is particularly important since the vast majority of private and public work is obtained by bidding against other contractors. In fact, Clough (1)* points out that competitive bidding, "the contract method of construction," accounts for an estimated 95 percent of all public construction work. Basically, the bidding process consists of several competing contractors submitting closed bids to a client who selects the bid most desirable to him. The client will usually, and may be legally required to, accept the lowest bid. Obviously, being able to produce low bids with a reasonable profit margin is essential for success. The contractor can make a reasonably accurate cost estimate of the work specified by the contract. His markup, added to his cost estimate, makes his final bid price on a lump-sum contract. If he makes his markup too large, he may receive too few contracts to stay in business. Conversely, if he includes a small markup he may win many contracts but may not make enough money to stay in business. The successful contractor must employ a strategy enabling him to avoid both extremes.

Document Type

Thesis

Language

English

Degree Name

Civil Engineering

Level of Degree

Masters

Department Name

Civil Engineering

First Committee Member (Chair)

Richard Hudson Clough

Second Committee Member

Frank Parker Fowler

Third Committee Member

James Tsu-Ping Yao

Download

Share

COinS