STM Journals Peer-reviewed research from Consortium e-Learning Network

Journal of Construction Engineering, Technology & Management

Bidding Strategy and Risk Rating Guidelines for Construction Contractors

  1. MEDHA JOSHI

Abstract

Due to intense competition, contractors are compelled to place bids with minimal profits to remain in the market. If a contractor intentionally or unintentionally submits a bid with an unrealistically low price, the probability of obtaining a construction contract rises, however it will directly result in cost estimation error and affect the profitability of the contractor, this article provides guidelines to the contractor in pre-bidding stage. This also focusses on the positive side of risk i.e. opportunity and negative side i.e. threat and offers some pointers to the established and new contractors to minimize the bidding risks so as to optimize profitability.
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