Identification and Prevention of Unbalanced Bids Using the Unascertained Model

An, Xuehui; Li, Huimin; Zuo, Jian; Ojuri, Omoleye; Wang, Zhuofu; Ding, Jianrui

doi:10.1061/(asce)co.1943-7862.0001563

Cited by 26 publications

(23 citation statements)

References 22 publications

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“…From the above analysis, with the different weight v of group utility, the ranks of bidders are different, which means that the bidder of unbalanced bid is determined according to the attitude of owners for seriously concerning unbalanced bid. Especially, the result in the later is the same as that in Arditi and Chotibhongs (2009) and An et al (2018). The superiority of the proposed method is that the preference of owners is taken into consideration in the identification process of unbalanced bidding.…”

Section: Sensitivity Analysis When V Is Continuous Point Coordinate Vmentioning

confidence: 65%

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Multi-Criteria Decision Making for Identification of Unbalanced Bidding

Wang

et al. 2019

Journal of Civil Engineering and Management

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Unbalanced bidding is a serious problem in the competitive bidding practices of construction projects. Identification and prevention of unbalanced bidding is an important and complexity task for owners. This paper aims to propose an identification model of unbalanced bidding from multi-criteria decision making (MCDM) perspective. The VIKOR method is employed to detect unbalanced bidding, in which the line items and bidders are considered as criteria and alternatives in MCDM, respectively. And the engineer’s estimated price is chosen as evaluation benchmarking. Then relative distances between engineer’s estimated price and each bidding unit price are calculated to build decision matrix. The weights of factors are determined using entropy weight method. To illustrate the effectiveness of the proposed model, an application example is tested in detecting unbalanced bidding. Finally, the sensitivity analysis about VIKOR method is given. It shows that the presented model would provide a robust decision making support for owner in identifying unbalanced bidding.

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Section: Sensitivity Analysis When V Is Continuous Point Coordinate Vmentioning

confidence: 65%

“…These countermeasures also provide support to bidding officials to protect public interests and ensure an efficient use of the public money. The identification of unbalanced bidding is acted in uncertainty environment; An et al (2018) developed an identification model based on unascertained mathematical theory.…”

Section: Introductionmentioning

confidence: 99%

Multi-Criteria Decision Making for Identification of Unbalanced Bidding

Wang

et al. 2019

Journal of Civil Engineering and Management

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“…However, how to quantitatively describe the unascertained state or the unascertained size of the thing, Liu et al established the unascertained mathematical theory, and proposed an evaluation model of unascertained measure theory to describe a thing in an unascertained state or with some unascertained nature by a real number between 0 and 1 [35]. Afterwards, the unascertained measure theory has been rapidly developed and applied, and has been widely used in many fields such as reliability assessment [36], safety risk assessment [37][38][39], social development assessment [40], bidding quotation [41], project delivery [42], and has achieved good results.…”

Section: Entropy-unascertained Measure Theorymentioning

confidence: 99%

Construction Safety Risk Assessment for Existing Building Renovation Project Based on Entropy-Unascertained Measure Theory

Qin

Liu

et al. 2020

Applied Sciences

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With the development of society, there are more and more existing building renovation projects. According to the common construction safety problems, and based on the characteristics of the construction process of renovation project, this paper established a construction safety risk assessment model of renovation project based on entropy-unascertained measure theory. Firstly, the assessment index system was determined by risk identification and analysis. Secondly, the unascertained measure theory was applied to the construction safety risk assessment of renovation project, and the weight of each index was determined by the entropy weight method. Finally, taking the actual renovation projects as examples to calculate its safety risk grade, it is found that the assessment results of the model are basically consistent with the actual situation of the site by comparison. The research shows that the model can provide a new idea to quantitatively assess the construction safety risk of renovation project and provide a reliable basis for the management and control of the construction safety of existing building renovation project.

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“…Unbalanced bidding, also known as skewed bidding, can be defined as the process of increasing the prices of some items and concurrently decreasing the prices of other items without affecting the total offered bid price, with the intention of achieving competitive advantage over rivals and thereby increasing the chance of winning the contract, minimizing the total project cost, improving cash flow, and increasing the profit of the project (Cattell et al 2007; Afshar and Amiri 2010a; Skitmore and Cattell 2013;Hyari 2016;Hyari et al 2016;Nikpour et al 2017;An et al 2018;Aziz and Aboelmagd 2019). Although this practice can be used by contractors when they are bidding lump sum or unit price contracts (e.g., Su and Lucko 2015;Hyari 2016;Hyari et al 2016;Hyari 2017;Nikpour et al 2017), it is predominantly used in unit price contracts as the actual quantity is not known for certain (e.g., Hoogenboom et al 2006;Arditi and Chotibhongs 2009;Mandell and Nyström 2011;Nyström 2015;An et al 2018).…”

Section: Introductionmentioning

confidence: 99%

Detecting unbalanced bids via an improved grading-based model

Polat

Turkoglu

Damcı

et al. 2020

Organization, Technology and Management in Construction: An International Journal

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Unbalanced bidding, also known as skewed bidding, is the process of increasing and/or decreasing the prices of various bid items without altering the total offered bid price. Bids can be unbalanced either mathematically (front-end loading) or materially (quantity error exploitation). Owners should be very careful when evaluating the tenders as awarding a contract to an unbalanced bid may result in severe cost overruns because the prices of those items do not reflect their true costs and markup allocations. Unbalanced bidding is still a contentious issue in the construction industry. While some researchers consider it as a legal bidding strategy in such a fierce competitive business environment, others view it as an unethical practice and claim that unbalanced bids should be disqualified. Studies regarding unbalanced bidding can be categorized into two groups: (1) the ones focusing on detecting or preventing this practice to help owners; and 2) the ones focusing on optimizing unbalanced bidding to help contractors. This study aims to develop a model, which consists of eight grading systems, to assist owners in detecting materially unbalanced bids. The proposed model is the improved version of the previous model, which was composed of five grading systems. In order to demonstrate how this grading-based model can be used by owners, an illustrative example is presented. It was found that owners can easily and successfully detect unbalanced bids via the proposed model.

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Identification and Prevention of Unbalanced Bids Using the Unascertained Model

Cited by 26 publications

References 22 publications

Multi-Criteria Decision Making for Identification of Unbalanced Bidding

Multi-Criteria Decision Making for Identification of Unbalanced Bidding

Construction Safety Risk Assessment for Existing Building Renovation Project Based on Entropy-Unascertained Measure Theory

Detecting unbalanced bids via an improved grading-based model

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