Eine Plattform für die Wissenschaft: Bauingenieurwesen, Architektur und Urbanistik
Eine Plattform für die Wissenschaft: Bauingenieurwesen, Architektur und Urbanistik
Pricing Strategy for Best Value Tender
Unlike the traditional price-focused lowest bid (LB), the best value (BV) tendering process selects the contractor that offers a product or service that is most beneficial to the procurement entity in various aspects. Existing pricing models, including cost-based probabilistic models and market-based neoclassical microeconomic theory, were developed for LB. Very few operational models exist for BV tenders due to the difficulty of measuring the price differences with respect to the variance of product or service quality. This paper proposes a price elasticity of quality (PEQ) model that provides useful tools to measure the PEQ of a product or service offered by contractors in a tendering process. Based on the proposed model, a bidding zone is suggested for the contractor in light of competitiveness and profitability. Two working examples are used to show the applicability of the proposed method.
Pricing Strategy for Best Value Tender
Unlike the traditional price-focused lowest bid (LB), the best value (BV) tendering process selects the contractor that offers a product or service that is most beneficial to the procurement entity in various aspects. Existing pricing models, including cost-based probabilistic models and market-based neoclassical microeconomic theory, were developed for LB. Very few operational models exist for BV tenders due to the difficulty of measuring the price differences with respect to the variance of product or service quality. This paper proposes a price elasticity of quality (PEQ) model that provides useful tools to measure the PEQ of a product or service offered by contractors in a tendering process. Based on the proposed model, a bidding zone is suggested for the contractor in light of competitiveness and profitability. Two working examples are used to show the applicability of the proposed method.
Pricing Strategy for Best Value Tender
Yu, Wen-der (Autor:in) / Wang, Kwo-Wuu (Autor:in) / Wang, Ming-Teh (Autor:in)
Journal of Construction Engineering and Management ; 139 ; 675-684
31.08.2012
102013-01-01 pages
Aufsatz (Zeitschrift)
Elektronische Ressource
Englisch
Pricing Strategy for Best Value Tender
| Online Contents | 2013
Pricing Strategy for Best Value Tender
| British Library Online Contents | 2013
Tender Pricing of Infrastructure Projects: Affecting Factors
| TIBKAT | 2020
Tender Pricing Environment of Subcontractors in the United Kingdom
| British Library Online Contents | 2014