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Prequalification and c-competitiveness

Drew, Derek S. and Skitmore, Martin (1993) Prequalification and c-competitiveness. OMEGA: International Journal of Management Science 21(3):pp. 363-376.

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Abstract

Two major factors to be considered in prequalifying construction contract bidders are the likely costs and risks to be faced by the client upon award of the contract. Prequalification of too many bidders, although lowering client costs, increases risks and causes an excessive overhead on the bidding process. A method of assessing the relative cost and risk implications associated with individual bidders is proposed. This involves calculating the percentage that bids are above the lowest bid in previous auctions, termed C-Competitiveness. It is argued that selecting only the lowest and most consistent C-Competitive bidders for a proposed contract auction will reduce client, risks and bidding overhead.

Item Type:Journal Article
Status:Published
Keywords:bidding, competitiveness, interfirm comparisons, performance ratios, prequalification, risk.
Subjects:310000 Architecture, Urban Environment and Building > 310100 Architecture and Urban Environment
310000 Architecture, Urban Environment and Building
ID Code:4416
Deposited By:Alwi, Sugiharto
Deposited On:05 June 2006
Alternative Locations:http://dx.doi.org/10.1016/0305-0483(93)90093-Z
Copyright Owner:Copyright 1993 Elsevier
Copyright Statement:Reproduced in accordance with the copyright policy of the publisher.