Developing a Fair And Reasonable (FAR) Price Reasonable Lowest Bid Model Using OR Technique

Kishan H Joshi
Student of Final year M.Tech Construction Engineering and Management, B.V.M Engineering College, Vallabh Vidyanagar, Gujarat, India , IN

Prof. Amitkumar N Bhavsar
Student of Final year M.Tech Construction Engineering and Management, B.V.M Engineering College, Vallabh Vidyanagar, Gujarat, India , IN

Prof. Dharmesh K Oza
Student of Final year M.Tech Construction Engineering and Management, B.V.M Engineering College, Vallabh Vidyanagar, Gujarat, India , IN

Keywords: Unbalance Tendering, Tendering , Contractors

Abstract

Modern Construction projects often induce unbalance bidding by contractors which is not in the larger interest of the owner. Because of uncertainties within the project, contractor in order to pacify the effects encountered during project submits a bid price in an unbalance manner. One of the primary reasons for submitting an unbalanced bid is that contractor tries to have a competitive advantage thus by affecting the healthy competition between contractors. If the strategy of contractors turns out to be positive, contractor will earn higher profit which in turn puts a financial burden on the owner. On the other hand with uncertainties to be accompanied while executing project, if the said strategy has a negative impact than contractors has to suffer a loss. To avoid the loss to owner, loss to contractors or affecting quality of work, topic has been selected to propose a model which is fair and reasonable in nature to both contractors and owner executing the project and to find an alternative in order to mitigate the unbalance tendering

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