Determining a good price in competitive bidding is a common problem for the construction company. An offer price could be too high for contractors hoping to get a big profit with no risk to get the project, or too low in the hope of getting a lot of projects but at the risk of losing opportunity to get benefits and risks of failure in carrying out the work.Friedman model was selected for bidding strategy purpose. The model was applied to a number of data offering price of contractors bidding for the construction of buildings in the city Banjarbaru starting in 2012-2015, which has Owners’s estimate with a range between IDR 248 million to IDR 4.8 billion. Then the test data results with the data that has been set aside for testing the model.Friedman bidding strategy models produced Mark-Up valued at -9% for multi normal distributions and -5% for a single normal distribution. Mark-Up is validated on the winning bidder of IDR 478,590.00. The tests produced the offering price of IDR 478,560,210.00 (with Mark Up -8.84%) and IDR 498,726,250.00 (with Mark Up -5%). So Friedman models with Multi Normal Distribution can beat the lowest bid.
| Published in | Journal of Civil, Construction and Environmental Engineering (Volume 1, Issue 1) |
| DOI | 10.11648/j.jccee.20160101.12 |
| Page(s) | 12-17 |
| Creative Commons |
This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited. |
| Copyright |
Copyright © The Author(s), 2024. Published by Science Publishing Group |
Procurement, Bidding Strategy, Normal Distribution, Friedman, Mark Up
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APA Style
Candra Yuliana, Retna Hapsari Kartadipura, Syahril Taufik. (2016). Bidding Strategy Using Friedman Model for Building Construction Project in Banjarbaru Indonesia. Journal of Civil, Construction and Environmental Engineering, 1(1), 12-17. https://doi.org/10.11648/j.jccee.20160101.12
ACS Style
Candra Yuliana; Retna Hapsari Kartadipura; Syahril Taufik. Bidding Strategy Using Friedman Model for Building Construction Project in Banjarbaru Indonesia. J. Civ. Constr. Environ. Eng. 2016, 1(1), 12-17. doi: 10.11648/j.jccee.20160101.12
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Download@article{10.11648/j.jccee.20160101.12,
author = {Candra Yuliana and Retna Hapsari Kartadipura and Syahril Taufik},
title = {Bidding Strategy Using Friedman Model for Building Construction Project in Banjarbaru Indonesia},
journal = {Journal of Civil, Construction and Environmental Engineering},
volume = {1},
number = {1},
pages = {12-17},
doi = {10.11648/j.jccee.20160101.12},
url = {https://doi.org/10.11648/j.jccee.20160101.12},
eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.jccee.20160101.12},
abstract = {Determining a good price in competitive bidding is a common problem for the construction company. An offer price could be too high for contractors hoping to get a big profit with no risk to get the project, or too low in the hope of getting a lot of projects but at the risk of losing opportunity to get benefits and risks of failure in carrying out the work.Friedman model was selected for bidding strategy purpose. The model was applied to a number of data offering price of contractors bidding for the construction of buildings in the city Banjarbaru starting in 2012-2015, which has Owners’s estimate with a range between IDR 248 million to IDR 4.8 billion. Then the test data results with the data that has been set aside for testing the model.Friedman bidding strategy models produced Mark-Up valued at -9% for multi normal distributions and -5% for a single normal distribution. Mark-Up is validated on the winning bidder of IDR 478,590.00. The tests produced the offering price of IDR 478,560,210.00 (with Mark Up -8.84%) and IDR 498,726,250.00 (with Mark Up -5%). So Friedman models with Multi Normal Distribution can beat the lowest bid.},
year = {2016}
}
TY - JOUR T1 - Bidding Strategy Using Friedman Model for Building Construction Project in Banjarbaru Indonesia AU - Candra Yuliana AU - Retna Hapsari Kartadipura AU - Syahril Taufik Y1 - 2016/11/19 PY - 2016 N1 - https://doi.org/10.11648/j.jccee.20160101.12 DO - 10.11648/j.jccee.20160101.12 T2 - Journal of Civil, Construction and Environmental Engineering JF - Journal of Civil, Construction and Environmental Engineering JO - Journal of Civil, Construction and Environmental Engineering SP - 12 EP - 17 PB - Science Publishing Group SN - 2637-3890 UR - https://doi.org/10.11648/j.jccee.20160101.12 AB - Determining a good price in competitive bidding is a common problem for the construction company. An offer price could be too high for contractors hoping to get a big profit with no risk to get the project, or too low in the hope of getting a lot of projects but at the risk of losing opportunity to get benefits and risks of failure in carrying out the work.Friedman model was selected for bidding strategy purpose. The model was applied to a number of data offering price of contractors bidding for the construction of buildings in the city Banjarbaru starting in 2012-2015, which has Owners’s estimate with a range between IDR 248 million to IDR 4.8 billion. Then the test data results with the data that has been set aside for testing the model.Friedman bidding strategy models produced Mark-Up valued at -9% for multi normal distributions and -5% for a single normal distribution. Mark-Up is validated on the winning bidder of IDR 478,590.00. The tests produced the offering price of IDR 478,560,210.00 (with Mark Up -8.84%) and IDR 498,726,250.00 (with Mark Up -5%). So Friedman models with Multi Normal Distribution can beat the lowest bid. VL - 1 IS - 1 ER -
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