A Revised Algorithm for Competitive Bidding Price Decision under Limited Engineering Man-Hours in EPC Projects

• ISHII Nobuaki

  Bunkyo University,

• TAKANO Yuichi

  Senshu University,

• MURAKI Masaaki

  Tokyo Institute of Technology,

Bibliographic Information

Other Title

• 見積り工数制約下におけるEPCプロジェクト入札価格決定改訂アルゴリズム

Abstract

To determine the bidding prices in Engineering-Procurement-Construction (EPC) projects, where contract prices are fixed, the contractor needs to consider the accuracy of estimated project cost under the limited engineering Man-Hours (MH) for cost estimation to attain maximum profit from or- ders. In this paper, we develop an algorithm where, in order to attain maximum profit, bidding prices are determined by allocating MH for cost estimation and adjusting bidding prices simultaneously in consideration of the competitive bidding environments, and the cost estimation accuracy under the constraint of the total MH and the deficit risk of each order. Through numerical examples delivered from the algorithm, we show that the developed algorithm is effective for bidding price decision in EPC projects.

Journal

• Oukan (Journal of Transdisciplinary Federation of Science and Technology)

  Oukan (Journal of Transdisciplinary Federation of Science and Technology) 10 (1), 47-56, 2016

  Transdisciplinary Federation of Science and Technology

Keywords

• competitive bidding
• cost estimation accuracy
• deficit risk
• man-Hour allocation

Details

• CRID: 1390001205289429248
• NII Article ID: 130005145686
• DOI: 10.11487/trafst.10.1_47
• ISSN: 21896399
• ISSN: 18817610
• Text Lang: en
• Data Source:
  • JaLC
  • CiNii Articles
  • KAKEN
• Abstract License Flag: Disallowed