Competitor analysis in construction bidding

Bee-Lan Oo, Derek Drew and Goran Runeson

Construction Management and Economics, 2010, vol. 28, issue 12, 1321-1329

Abstract: Bidding strategies vary from contractor to contractor, each of which will have different degrees of sensitivity towards the factors affecting their bidding decisions. A competitor analysis using a linear mixed model is proposed for use by contractors as part of a more informed approach in identifying key competitors, and as a basis for formulating bidding strategies. The competitiveness between bids is examined according to: (i) project size, (ii) work sector; (iii) work nature; and (iv) number of bidders. The model was tested empirically by application to a bidding dataset obtained from a large Hong Kong contractor. Allowing for different degrees of sensitivity towards the four bidding variables across competing contractors (i.e. with the model parameters that varied across competing contractors), the results indicate that competitiveness in bidding of this contractor is generally greater than the majority of its competitors.

Keywords: Bidding; competitor analysis; competitiveness (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (2)

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DOI: 10.1080/01446193.2010.520721

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