Predatory bidding in competitive tenders: A Swedish case study

Alexandersson, Gunnar; Hultén, Staffan

doi:10.1007/s10657-006-8981-7

Cited by 19 publications

(16 citation statements)

References 17 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Several researchers have examined the reasons for such behaviour [1,5,10]. A list of possible reasons is reported below:…”

Section: Procurement Auctions and Anomalous Bidsmentioning

confidence: 99%

See 1 more Smart Citation

Detection of anomalous bids in procurement auctions

Conti

Naldi

2008

Decision Support Systems

View full text Add to dashboard Cite

“…Several researchers have examined the reasons for such behaviour [1,5,10]. A list of possible reasons is reported below:…”

Section: Procurement Auctions and Anomalous Bidsmentioning

confidence: 99%

“…For example, it may be in desperate need of obtaining a contract, though it may turn into a financial loss. Or it may aim at ousting a potential competitor (the phenomenon of predatory bidding [1]). In some cases it may even present a noncompetitive bid, i.e.…”

Section: Introductionmentioning

confidence: 99%

Detection of anomalous bids in procurement auctions

Conti

Naldi

2008

Decision Support Systems

View full text Add to dashboard Cite

“…There have also been cases in which a low bid was deliberately submitted to oust a competitor or to protect a company's position in the market or to gain access to a new market [20][21][22].…”

Section: Introductionmentioning

confidence: 99%

Abnormally Low Tenders in Non-pricing Criteria: the Need for Control

Bargues¹,

González-Cruz²,

González-Gaya³

2016

ujm

View full text Add to dashboard Cite

As public procurement accounts for approximately 10 to 15% of gross domestic product (GDP) in developed countries, tendering mechanisms should be clearly defined in order to avoid any actions that could endanger the basic principle that all bidders should be on equal terms. An Abnormally Low Tender (ALT) is defined as an offer too low to provide a normal level of profit and that cannot be explained on the basis of construction methods, the technical solution chosen, the originality of the work, or the favorable conditions of the tenderer. Public bodies are well aware of the risk of accepting an offer that cannot be carried out and despite the difficulty of detection recommendations for their prevention usually focus on the price criterion. Most tenders are awarded to the economically most advantageous tender (EMAT), which is assessed by various criteria (including price), though other criteria often have equal or greater weight in the final decision. The method used in this research study is divided into two main phases. First, the score of the bidders is obtained for criteria evaluated by formulae other than price, based on the contract terms of three case studies, after which new scores for these award criteria are obtained from ALT formulae, then, the results of both scoring methods are analyzed. This paper defends the need to control abnormally low tenders by means of award criteria evaluated by formulae other than those of price.

show abstract

“…He may lack experience in auctions or may have miscalculated the costs and the return needed to recoup its funding [45][46]. There have also been cases in which a low bid was deliberately submitted to oust a competitor, protect a company's position in the market or gain access to a new market [47][48], a phenomenon known as predatory pricing [49].…”

Section: Introductionmentioning

confidence: 99%

A Methodology to Detect the Deviations of the Project's Budget Compared to Market Prices

Bargues¹,

González-Cruz²,

González-Gaya³

et al. 2015

ujm

View full text Add to dashboard Cite

The budget of a project reflects the cost of the investment needed to build an infrastructure, install a system or acquire new materials or supplies. A well-formulated budget in accordance with market prices, allows contractors to prepare offers according to their technical, economic and financial characteristics. On the other hand, it avoids current philosophies that aim to get the contract at any price. Philosophies subsequently used to point out problems and claims during the execution of the project (contradictory prices, delays, etc.) in order to recover some or the entire economic bid carried out during the tendering. In this paper a simple and fast methodology is developed to check if the tendering price is in accordance with market prices, so that the economic viability of the project is not at risk. The application of the methodology on a sample of projects allows us to check the influence of the type of project (civil or building) on the characteristics of the budget. It also allows us to point out the insufficient economic endowment of the projects as the start of the subsequent problems during the execution of the work.

show abstract

Predatory bidding in competitive tenders: A Swedish case study

Abstract: Deregulation, Railways, Competitive tendering, Predatory bidding,

Cited by 19 publications

References 17 publications

Detection of anomalous bids in procurement auctions

Detection of anomalous bids in procurement auctions

Abnormally Low Tenders in Non-pricing Criteria: the Need for Control

A Methodology to Detect the Deviations of the Project's Budget Compared to Market Prices

Contact Info

Product

Resources

About