How to cite this paper
APA: Rastegar, H., Shirani, B., Mirmohammadi, S & Bajegani, E. (2021). A hybrid mathematical programming model and statistical approach for bidding price decision in construction projects. Journal of Project Management, 6(1), 1-22.
Chicago/Turabian: Rastegar, H., Shirani, B., Mirmohammadi, S & Bajegani, E. 2021. "A hybrid mathematical programming model and statistical approach for bidding price decision in construction projects." Journal of Project Management 6, no. 1 (2021): 1-22.
AMA: Rastegar, H., Shirani, B., Mirmohammadi, S & Bajegani, E. A hybrid mathematical programming model and statistical approach for bidding price decision in construction projects. Journal of Project Management. 2021;6(1):1-22.
References
Abdoli, G., & Khirandish, A. (2010). A game theory model of economic opportunistic bidding and claim with a case study in Iran. Economic Research, 14(43), 111-140.
Alimian, M., Saidi-Mehrabad, M., & Jabbarzadeh, A. (2019). A robust integrated production and preventive maintenance planning model for multi-state systems with uncertain demand and common cause failures. Journal of Manufacturing Systems, 50, 263-277.
Ballesteros-Pérez, P., & Skitmore, M. (2016). Estimating the number of new and repeated bidders in construction auc-tions. Construction Management and Economics, 34(12), 919-934.
Bertsimas, D., & Sim, M. (2004). The price of robustness. Operations research, 52(1), 35-53.
Bigdeli, N., Afshar, K., & Fotuhi-Firuzabad, M. (2010). Bidding strategy in pay-as-bid markets based on supplier-market interaction analysis. Energy Conversion and Management, 51(12), 2419-2430.
Burkardt, J. (2014). The truncated normal distribution. Department of Scientific Computing Website, Florida State Uni-versity, 1-35.
Carr, P. G. (2005). Investigation of bid price competition measured through prebid project estimates, actual bid prices, and number of bidders. Journal of Construction Engineering and Management, 131(11), 1165-1172.
Cheng, M. Y., Hsiang, C. C., Tsai, H. C., & Do, H. L. (2011). Bidding decision making for construction company using a multi-criteria prospect model. Journal of Civil Engineering and Management, 17(3), 424-436.
Chou, J. S., Pham, A. D., & Wang, H. (2013). Bidding strategy to support decision-making by integrating fuzzy AHP and regression-based simulation. Automation in Construction, 35, 517-527.
Christodoulou, S. (2010). Bid mark-up selection using artificial neural networks and an entropy metric. Engineering, Con-struction and Architectural Management, 17(4), 424-439.
Crowley, L. G., & Hancher, D. E. (1995). Evaluation of competitive bids. Journal of Construction Engineering and Man-agement, 121(2), 238-245.
Chua, D. K. H., Li, D. Z., & Chan, W. T. (2001). Case-based reasoning approach in bid decision making. Journal of con-struction engineering and management, 127(1), 35-45.
Davatgaran, V., Saniei, M., & Mortazavi, S. S. (2018). Optimal bidding strategy for an energy hub in energy market. En-ergy, 148, 482-493.
Dikmen, I., Birgonul, M. T., & Gur, A. K. (2007). A case-based decision support tool for bid mark-up estimation of inter-national construction projects. Automation in Construction, 17(1), 30-44.
Dong-Hong, C., & Xi-Yan, Z. (2009, October). Application of game theory on bidding price decision. In 2009 16th Inter-national Conference on Industrial Engineering and Engineering Management (pp. 58-61). IEEE.
Dong-hong, C., & Xi-yan, Z. (2009, December). Bidding price game model. In Information and Multimedia Technology, 2009. ICIMT'09. International Conference on (pp. 86-89). IEEE.
Dougherty, E. L., & Nozaki, M. (1975). Determining optimum bid fraction. Journal of petroleum Technology, 27(03), 349-356.
Engelbrecht-Wiggans, R. (1978). A Model for the Distribution of the Number of Bidders in an Auction (No. Discussion). YALE UNIV NEW HAVEN CONN COWLES FOUNDATION FOR RESEARCH IN ECONOMICS.
Friedman, L. (1956). A competitive-bidding strategy. Operations research, 4(1), 104-112.
Gates, M. (1967). Bidding strategies and probabilities. Journal of the Construction Division, 93(1), 75-110.
Habibi-Kouchaksaraei, M., Paydar, M. M., & Asadi-Gangraj, E. (2018). Designing a bi-objective multi-echelon robust blood supply chain in a disaster. Applied Mathematical Modelling, 55, 583-599.
Haight, F. A., & Haight, F. A. (1967). Handbook of the Poisson distribution. 1967. New York: Jon Wiley & Sons.
Hickman, B. R., Hubbard, T. P., & Paarsch, H. J. (2017). Identification and estimation of a bidding model for electronic auctions. Quantitative Economics, 8(2), 505-551.
Ho, S. P., & Liu, L. Y. (2004). Analytical model for analyzing construction claims and opportunistic bidding. Journal of construction engineering and management, 130(1), 94-104.
Hosny, O., & Elhakeem, A. (2012). Simulating the winning bid: A generalized approach for optimum markup estimation. Automation in Construction, 22, 357-367.
Hossein Bor, R. (1977). Risk Analysis of Tendering Policies for Capital Projects (Doctoral dissertation, University of Bradford).
Huang, Z. X. (2016). Modeling bidding decision in engineering field with incomplete information: A static game–based approach. Advances in Mechanical Engineering, 8(1), 1687814015624830.
Jank, W., & Zhang, S. (2011). An automated and data-driven bidding strategy for online auctions. INFORMS Journal on computing, 23(2), 238-253.
Jato-Espino, D., Castillo-Lopez, E., Rodriguez-Hernandez, J., & Canteras-Jordana, J. C. (2014). A review of application of multi-criteria decision making methods in construction. Automation in Construction, 45, 151-162.
Kauppinen, L., Siddiqui, A. S., & Salo, A. (2018). Investing in Time-to-Build Projects With Uncertain Revenues and Costs: A Real Options Approach. IEEE Transactions on Engineering Management, 65(3), 448-459.
Keller, A. Z., & Bor, R. H. (1978, May). Strategic aspects of bidding against an unknown number of bidders. In TIMS/ORSA meeting.
Kim, B. C. (2015). Integrating risk assessment and actual performance for probabilistic project cost forecasting: a second moment Bayesian model. IEEE Transactions on engineering management, 62(2), 158-170.
Kim, S., & Shim, J. H. (2013). Combining case-based reasoning with genetic algorithm optimization for preliminary cost estimation in construction industry. Canadian Journal of Civil Engineering, 41(1), 65-73.
Kumar, J. V., Kumar, D. V., & Edukondalu, K. (2013). Strategic bidding using fuzzy adaptive gravitational search algo-rithm in a pool based electricity market. Applied Soft Computing, 13(5), 2445-2455.
Li, H. (1996). Neural network models for intelligent support of mark-up estimation. Engineering, Construction and Archi-tectural Management, 3(1/2), 69-81.
Liu, M., & Ling, Y. Y. (2003). Using fuzzy neural network approach to estimate contractors’ markup. Building and Envi-ronment, 38(11), 1303-1308.
Liu, M., & Ling, Y. Y. (2005). Modeling a contractor’s markup estimation. Journal of Construction Engineering and Management, 131(4), 391-399.
Liu, J., Cui, Z., Yang, X., & Skitmore, M. (2018). Experimental investigation of the impact of risk preference on construc-tion bid markups. Journal of Management in Engineering, 34(3), 04018003.
Lo, W., Lin, C. L., & Yan, M. R. (2007). Contractor’s opportunistic bidding behavior and equilibrium price level in the construction market. Journal of construction engineering and management, 133(6), 409-416.
Lorentziadis, P. L. (2016). Optimal bidding in auctions from a game theory perspective. European Journal of Operational Research, 248(2), 347-371.
Love, P. E., Davis, P. R., Ellis, J. M., & Cheung, S. O. (2010). A systemic view of dispute causation. International Journal of Managing Projects in Business, 3(4), 661-680.
Marzouk, M., & Moselhi, O. (2003). A decision support tool for construction bidding. Construction Innovation, 3(2), 111-124.
Mohlin, E., Östling, R., & Wang, J. T. Y. (2015). Lowest unique bid auctions with population uncertainty. Economics let-ters, 134, 53-57.
Moselhi, O., Hegazy, T., & Fazio, P. (1993). DBID: analogy-based DSS for bidding in construction. Journal of Construc-tion Engineering and Management, 119(3), 466-479.
Mulvey, J. M., Vanderbei, R. J., & Zenios, S. A. (1995). Robust optimization of large-scale systems. Operations research, 43(2), 264-281.
Park, C. S. (2001). Contemporary engineering economics: A Canadian perspective. Addison Wesley Longman.
Pouriani, S., Asadi-Gangraj, E., & Paydar, M. M. (2019). A robust bi-level optimization modelling approach for municipal solid waste management; a real case study of Iran. Journal of Cleaner Production, 240, 118125.
Rohatgi, V. K., & Saleh, A. M. E. (2015). An introduction to probability and statistics. John Wiley & Sons.
Rothkopf, M. H., & Harstad, R. M. (1994). Modeling competitive bidding: A critical essay. Management science, 40(3), 364-384.
Skitmore, M. (2014). Generalised gamma bidding model. Journal of the operational research society, 65(1), 97-107.
Skitmore, M., & Pemberton, J. (1994). A multivariate approach to construction contract bidding mark-up strategies. Jour-nal of the Operational Research Society, 45(11), 1263-1272.
Skitmore, R., & Pemberton, J. (2006). A multivariate approach to optimal bidding. Management, Quality and Economics in Building, 248.
Soleymani, S. (2011). Bidding strategy of generation companies using PSO combined with SA method in the pay as bid markets. International Journal of Electrical Power & Energy Systems, 33(7), 1272-1278.
Song, U. (2006). Nonparametric identification and estimation of a first-price auction model with an uncertain number of bidders. Working paper, University of British Columbia.Stark, R. M., & Rothkopf, M. H. (1979). Competitive bidding: A comprehensive bibliography. Operations Research, 27(2), 364-390.
Takano, Y., Ishii, N., & Muraki, M. (2014). A sequential competitive bidding strategy considering inaccurate cost esti-mates. Omega, 42(1), 132-140.
Takano, Y., Ishii, N., & Muraki, M. (2018). Determining bid markup and resources allocated to cost estimation in compet-itive bidding. Automation in Construction, 85, 358-368.
Wang, W. C., Dzeng, R. J., & Lu, Y. H. (2007). Integration of simulation‐based cost model and multi‐criteria evaluation model for bid price decisions. Computer‐Aided Civil and Infrastructure Engineering, 22(3), 223-235.
Wang, Y. Y., Hua, Z., Wang, J. C., & Lai, F. (2017). Equilibrium analysis of markup pricing strategies under power im-balance and supply chain competition. IEEE Transactions on Engineering Management, 64(4), 464-475.
Weverbergh, M. (1982). Competitive bidding: estimating the joint distribution of bids. Institute for Research in the Behav-ioral, Economic, and Management Sciences, Krannert Graduate School of Management, Purdue University.
Yan, P., Liu, J., & Skitmore, M. (2018). Individual, group, and organizational factors affecting group bidding decisions for construction projects. Advances in Civil Engineering, 2018.
Yu, C. S., & Li, H. L. (2000). A robust optimization model for stochastic logistic problems. International journal of pro-duction economics, 64(1-3), 385-397.
Zhang, G., Zhang, G., Gao, Y., & Lu, J. (2011). Competitive strategic bidding optimization in electricity markets using bi-level programming and swarm technique. IEEE Transactions on Industrial Electronics, 58(6), 2138-2146.
Alimian, M., Saidi-Mehrabad, M., & Jabbarzadeh, A. (2019). A robust integrated production and preventive maintenance planning model for multi-state systems with uncertain demand and common cause failures. Journal of Manufacturing Systems, 50, 263-277.
Ballesteros-Pérez, P., & Skitmore, M. (2016). Estimating the number of new and repeated bidders in construction auc-tions. Construction Management and Economics, 34(12), 919-934.
Bertsimas, D., & Sim, M. (2004). The price of robustness. Operations research, 52(1), 35-53.
Bigdeli, N., Afshar, K., & Fotuhi-Firuzabad, M. (2010). Bidding strategy in pay-as-bid markets based on supplier-market interaction analysis. Energy Conversion and Management, 51(12), 2419-2430.
Burkardt, J. (2014). The truncated normal distribution. Department of Scientific Computing Website, Florida State Uni-versity, 1-35.
Carr, P. G. (2005). Investigation of bid price competition measured through prebid project estimates, actual bid prices, and number of bidders. Journal of Construction Engineering and Management, 131(11), 1165-1172.
Cheng, M. Y., Hsiang, C. C., Tsai, H. C., & Do, H. L. (2011). Bidding decision making for construction company using a multi-criteria prospect model. Journal of Civil Engineering and Management, 17(3), 424-436.
Chou, J. S., Pham, A. D., & Wang, H. (2013). Bidding strategy to support decision-making by integrating fuzzy AHP and regression-based simulation. Automation in Construction, 35, 517-527.
Christodoulou, S. (2010). Bid mark-up selection using artificial neural networks and an entropy metric. Engineering, Con-struction and Architectural Management, 17(4), 424-439.
Crowley, L. G., & Hancher, D. E. (1995). Evaluation of competitive bids. Journal of Construction Engineering and Man-agement, 121(2), 238-245.
Chua, D. K. H., Li, D. Z., & Chan, W. T. (2001). Case-based reasoning approach in bid decision making. Journal of con-struction engineering and management, 127(1), 35-45.
Davatgaran, V., Saniei, M., & Mortazavi, S. S. (2018). Optimal bidding strategy for an energy hub in energy market. En-ergy, 148, 482-493.
Dikmen, I., Birgonul, M. T., & Gur, A. K. (2007). A case-based decision support tool for bid mark-up estimation of inter-national construction projects. Automation in Construction, 17(1), 30-44.
Dong-Hong, C., & Xi-Yan, Z. (2009, October). Application of game theory on bidding price decision. In 2009 16th Inter-national Conference on Industrial Engineering and Engineering Management (pp. 58-61). IEEE.
Dong-hong, C., & Xi-yan, Z. (2009, December). Bidding price game model. In Information and Multimedia Technology, 2009. ICIMT'09. International Conference on (pp. 86-89). IEEE.
Dougherty, E. L., & Nozaki, M. (1975). Determining optimum bid fraction. Journal of petroleum Technology, 27(03), 349-356.
Engelbrecht-Wiggans, R. (1978). A Model for the Distribution of the Number of Bidders in an Auction (No. Discussion). YALE UNIV NEW HAVEN CONN COWLES FOUNDATION FOR RESEARCH IN ECONOMICS.
Friedman, L. (1956). A competitive-bidding strategy. Operations research, 4(1), 104-112.
Gates, M. (1967). Bidding strategies and probabilities. Journal of the Construction Division, 93(1), 75-110.
Habibi-Kouchaksaraei, M., Paydar, M. M., & Asadi-Gangraj, E. (2018). Designing a bi-objective multi-echelon robust blood supply chain in a disaster. Applied Mathematical Modelling, 55, 583-599.
Haight, F. A., & Haight, F. A. (1967). Handbook of the Poisson distribution. 1967. New York: Jon Wiley & Sons.
Hickman, B. R., Hubbard, T. P., & Paarsch, H. J. (2017). Identification and estimation of a bidding model for electronic auctions. Quantitative Economics, 8(2), 505-551.
Ho, S. P., & Liu, L. Y. (2004). Analytical model for analyzing construction claims and opportunistic bidding. Journal of construction engineering and management, 130(1), 94-104.
Hosny, O., & Elhakeem, A. (2012). Simulating the winning bid: A generalized approach for optimum markup estimation. Automation in Construction, 22, 357-367.
Hossein Bor, R. (1977). Risk Analysis of Tendering Policies for Capital Projects (Doctoral dissertation, University of Bradford).
Huang, Z. X. (2016). Modeling bidding decision in engineering field with incomplete information: A static game–based approach. Advances in Mechanical Engineering, 8(1), 1687814015624830.
Jank, W., & Zhang, S. (2011). An automated and data-driven bidding strategy for online auctions. INFORMS Journal on computing, 23(2), 238-253.
Jato-Espino, D., Castillo-Lopez, E., Rodriguez-Hernandez, J., & Canteras-Jordana, J. C. (2014). A review of application of multi-criteria decision making methods in construction. Automation in Construction, 45, 151-162.
Kauppinen, L., Siddiqui, A. S., & Salo, A. (2018). Investing in Time-to-Build Projects With Uncertain Revenues and Costs: A Real Options Approach. IEEE Transactions on Engineering Management, 65(3), 448-459.
Keller, A. Z., & Bor, R. H. (1978, May). Strategic aspects of bidding against an unknown number of bidders. In TIMS/ORSA meeting.
Kim, B. C. (2015). Integrating risk assessment and actual performance for probabilistic project cost forecasting: a second moment Bayesian model. IEEE Transactions on engineering management, 62(2), 158-170.
Kim, S., & Shim, J. H. (2013). Combining case-based reasoning with genetic algorithm optimization for preliminary cost estimation in construction industry. Canadian Journal of Civil Engineering, 41(1), 65-73.
Kumar, J. V., Kumar, D. V., & Edukondalu, K. (2013). Strategic bidding using fuzzy adaptive gravitational search algo-rithm in a pool based electricity market. Applied Soft Computing, 13(5), 2445-2455.
Li, H. (1996). Neural network models for intelligent support of mark-up estimation. Engineering, Construction and Archi-tectural Management, 3(1/2), 69-81.
Liu, M., & Ling, Y. Y. (2003). Using fuzzy neural network approach to estimate contractors’ markup. Building and Envi-ronment, 38(11), 1303-1308.
Liu, M., & Ling, Y. Y. (2005). Modeling a contractor’s markup estimation. Journal of Construction Engineering and Management, 131(4), 391-399.
Liu, J., Cui, Z., Yang, X., & Skitmore, M. (2018). Experimental investigation of the impact of risk preference on construc-tion bid markups. Journal of Management in Engineering, 34(3), 04018003.
Lo, W., Lin, C. L., & Yan, M. R. (2007). Contractor’s opportunistic bidding behavior and equilibrium price level in the construction market. Journal of construction engineering and management, 133(6), 409-416.
Lorentziadis, P. L. (2016). Optimal bidding in auctions from a game theory perspective. European Journal of Operational Research, 248(2), 347-371.
Love, P. E., Davis, P. R., Ellis, J. M., & Cheung, S. O. (2010). A systemic view of dispute causation. International Journal of Managing Projects in Business, 3(4), 661-680.
Marzouk, M., & Moselhi, O. (2003). A decision support tool for construction bidding. Construction Innovation, 3(2), 111-124.
Mohlin, E., Östling, R., & Wang, J. T. Y. (2015). Lowest unique bid auctions with population uncertainty. Economics let-ters, 134, 53-57.
Moselhi, O., Hegazy, T., & Fazio, P. (1993). DBID: analogy-based DSS for bidding in construction. Journal of Construc-tion Engineering and Management, 119(3), 466-479.
Mulvey, J. M., Vanderbei, R. J., & Zenios, S. A. (1995). Robust optimization of large-scale systems. Operations research, 43(2), 264-281.
Park, C. S. (2001). Contemporary engineering economics: A Canadian perspective. Addison Wesley Longman.
Pouriani, S., Asadi-Gangraj, E., & Paydar, M. M. (2019). A robust bi-level optimization modelling approach for municipal solid waste management; a real case study of Iran. Journal of Cleaner Production, 240, 118125.
Rohatgi, V. K., & Saleh, A. M. E. (2015). An introduction to probability and statistics. John Wiley & Sons.
Rothkopf, M. H., & Harstad, R. M. (1994). Modeling competitive bidding: A critical essay. Management science, 40(3), 364-384.
Skitmore, M. (2014). Generalised gamma bidding model. Journal of the operational research society, 65(1), 97-107.
Skitmore, M., & Pemberton, J. (1994). A multivariate approach to construction contract bidding mark-up strategies. Jour-nal of the Operational Research Society, 45(11), 1263-1272.
Skitmore, R., & Pemberton, J. (2006). A multivariate approach to optimal bidding. Management, Quality and Economics in Building, 248.
Soleymani, S. (2011). Bidding strategy of generation companies using PSO combined with SA method in the pay as bid markets. International Journal of Electrical Power & Energy Systems, 33(7), 1272-1278.
Song, U. (2006). Nonparametric identification and estimation of a first-price auction model with an uncertain number of bidders. Working paper, University of British Columbia.Stark, R. M., & Rothkopf, M. H. (1979). Competitive bidding: A comprehensive bibliography. Operations Research, 27(2), 364-390.
Takano, Y., Ishii, N., & Muraki, M. (2014). A sequential competitive bidding strategy considering inaccurate cost esti-mates. Omega, 42(1), 132-140.
Takano, Y., Ishii, N., & Muraki, M. (2018). Determining bid markup and resources allocated to cost estimation in compet-itive bidding. Automation in Construction, 85, 358-368.
Wang, W. C., Dzeng, R. J., & Lu, Y. H. (2007). Integration of simulation‐based cost model and multi‐criteria evaluation model for bid price decisions. Computer‐Aided Civil and Infrastructure Engineering, 22(3), 223-235.
Wang, Y. Y., Hua, Z., Wang, J. C., & Lai, F. (2017). Equilibrium analysis of markup pricing strategies under power im-balance and supply chain competition. IEEE Transactions on Engineering Management, 64(4), 464-475.
Weverbergh, M. (1982). Competitive bidding: estimating the joint distribution of bids. Institute for Research in the Behav-ioral, Economic, and Management Sciences, Krannert Graduate School of Management, Purdue University.
Yan, P., Liu, J., & Skitmore, M. (2018). Individual, group, and organizational factors affecting group bidding decisions for construction projects. Advances in Civil Engineering, 2018.
Yu, C. S., & Li, H. L. (2000). A robust optimization model for stochastic logistic problems. International journal of pro-duction economics, 64(1-3), 385-397.
Zhang, G., Zhang, G., Gao, Y., & Lu, J. (2011). Competitive strategic bidding optimization in electricity markets using bi-level programming and swarm technique. IEEE Transactions on Industrial Electronics, 58(6), 2138-2146.