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Carr, R I (1987) Competitive Bidding and Opportunity Costs. Journal of Construction Engineering and Management, 113(01), 151–65.

  • Type: Journal Article
  • Keywords: Bids; Project management; Business management; Economic factors;
  • ISBN/ISSN: 0733-9364
  • URL: https://doi.org/10.1061/(ASCE)0733-9364(1987)113:1(151)
  • Abstract:
    Methods of analyzing competitive bidding have treated construction projects as isolated elements to be optimized without regard to availability of work or other opportunity costs. This paper shows how resource restraints and opportunities can be easily included in these competitive bid analyses, so that a contractor's decisions concerning the overall firm or its individual projects reflect a broad view of the firm's market position. It is shown how markup decisions and predictions of corresponding expected values can take into consideration other possible projects and uses for the firm's limited resources, and also it can take into consideration estimated project costs that differ from the historical base. Consideration of opportunity costs and resource restrictions integrates data and decisions for greater understanding of a firm's competitive position and better business decisions in general. An example demonstrates the methods.

Carr, R I (1987) Optimum Markup by Direct Solution. Journal of Construction Engineering and Management, 113(01), 138–50.

Easa, S M (1987) Earthwork Allocations with Nonconstant Unit Costs. Journal of Construction Engineering and Management, 113(01), 34–50.

Harris, R A, Bowlby, W and Cohn, L F (1987) Method for Analyzing Construction Haul Noise Impacts. Journal of Construction Engineering and Management, 113(01), 6–16.

Hilf, J W (1987) Rolled Concrete Dams Using Gap‐Graded Aggregate. Journal of Construction Engineering and Management, 113(01), 27–33.

Hinze, J (1987) Qualities of Safe Superintendents. Journal of Construction Engineering and Management, 113(01), 169–71.

King, R (1987) Designing Plans for Constructibility. Journal of Construction Engineering and Management, 113(01), 1–5.

Oberlender, G D and Hughes, R K (1987) Graduate Construction Programs in the United States. Journal of Construction Engineering and Management, 113(01), 17–26.

Stukharf, G (1987) Construction Management Responsibilities During Design. Journal of Construction Engineering and Management, 113(01), 90–98.

Vorster, M C and Sears, G A (1987) Model for Retiring, Replacing, or Reassigning construction equipment. Journal of Construction Engineering and Management, 113(01), 125–37.

Wharry, M B and Ashley, D B (1987) Countertrade Financing: Historical Example. Journal of Construction Engineering and Management, 113(01), 117–24.

Willenbrock, J H, Thomas, H R and Francis, P J (1987) Factors Affecting Outage Construction Efficiency. Journal of Construction Engineering and Management, 113(01), 99–116.