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http://dx.doi.org/10.5345/JKIBC.2015.15.1.089

Effects of the Methods for Generating and Selecting Multiple Preliminary Prices on Budget Prices in Bidding Processes  

Kang, Minseok (Information Planning Team, K-Water)
Riew, Moon Charn (Department of Business Administration, Korea University Sejong)
Publication Information
Journal of the Korea Institute of Building Construction / v.15, no.1, 2015 , pp. 89-97 More about this Journal
Abstract
In bidding processes conducted by government agencies, local governments or public agencies, budget prices are critical to both ordering bodies and bidders since budget prices are bases for selecting a successful bidder. Since a high budget price goes against ordering bodies and a low one goes against bidders, most ordering bodies adopt a system using multiple preliminary prices for determining a budget price to ensure fair and transparent manners. Discussed are how budget prices change depending on the methods of sampling 15 preliminary prices and the methods of sampling 4 out of 15 prices. Computer simulation is conducted to analyze budget prices for various methods to determine multiple preliminary prices. It is more likely for budget prices to be close to base prices when splitting a range of generating preliminary prices into 15 intervals and taking 4 preliminary prices from 15 intervals than when taking 4 preliminary prices from a whole range. In cases when splitting a range of generating preliminary prices, if we take 2 preliminary prices out of intervals above 100% and take 2 out of intervals below 100%, the expected budget prices are equal to a base price and the standard deviations are about half in comparison with those when taking 4 out of 15 intervals.
Keywords
bidding process; multiple preliminary price; budget price; simulation;
Citations & Related Records
Times Cited By KSCI : 2  (Citation Analysis)
연도 인용수 순위
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