The construction contract bidder homogeneity assumption : an empirical test

Skitmore, Martin (1991) The construction contract bidder homogeneity assumption : an empirical test. Construction Management and Economics, 9(5), pp. 403-429.

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This paper describes an empirical study to test the proposition that all construction contract bidders are homogeneous ie. they can be treated as behaving collectively in an identical (statistical) manner. Examination of previous analyses of bidding data reveals a flaw in the method of standardising bids across different size contracts and a new procedure is proposed which involves the estimation of a contract datum.

Three independent sets of bidding data were then subjected to this procedure and estimates of the necessary distributional parameters obtained. These were then tested against the bidder homogeneity assumption resulting in the conclusion that the assumption may be appropriate for a three parameter log-normal shape, but not for scale and location.

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ID Code: 59678
Item Type: Journal Article
Refereed: Yes
Keywords: Bidding, tendering, statistical models
DOI: 10.1080/01446199100000032
ISSN: 0144-6193
Subjects: Australian and New Zealand Standard Research Classification > BUILT ENVIRONMENT AND DESIGN (120000) > BUILDING (120200) > Quantity Surveying (120203)
Divisions: Current > Schools > School of Civil Engineering & Built Environment
Current > QUT Faculties and Divisions > Science & Engineering Faculty
Copyright Owner: Copyright 1991 E. & F.N. Spon and Taylor and Francis
Copyright Statement: This is an Author's Accepted Manuscript of an article published in Construction Management and Economics, Volume 9, Issue 5, 1991 [copyright Taylor & Francis], available online at:
Deposited On: 06 May 2013 02:25
Last Modified: 06 May 2013 03:07

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