ADMS 1010 Lecture Notes - Econometrics

• School: York University
• Department: Administrative Studies
• Course: ADMS 1010
• Professor: Rebecca Jubis

Document Summary

The effect of client and type and size of construction work on a contractor"s bidding strategy. Contractors making strategic decisions in respect of: (1) the selection of contracts to bid for (2) the bid levels necessary to secure them. If a contractor opts to bid, the pricing of the bid normally comprises a two-stage formulation process consisting of a baseline cost estimate and subsequent mark- up. Bid mark-up models proposed using a probabilistic approach to determine the most appropriate mark-up level for a given contract. Three approaches to bid modelling as being: (1) models based on probability theory; (2) econometric models; and (3) regression models. Carr and sandahl [7] suggested that regression modelling has many potential uses for contractors in a competitive bidding environment and used regression modelling to determine a contractor"s optimum mark-up level.