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Multiple‐objective bidding strategy using goal programming technique

Yongtao Tan (Building and Real Estate Department, Hong Kong Polytechnic University, Hong Kong, China)
Liyin Shen (Building and Real Estate Department, Hong Kong Polytechnic University, Hong Kong, China)
Weisheng Lu (Building and Real Estate Department, Hong Kong Polytechnic University, Hong Kong, China)
Qiping Shen (Building and Real Estate Department, Hong Kong Polytechnic University, Hong Kong, China)

Management Decision

ISSN: 0025-1747

Article publication date: 2 May 2008

Abstract

Purpose

This paper aims to provide a solution that allows a contractor to present its maximum competitiveness in meeting the multiple objectives defined by a project client in bidding for a contract.

Design/methodology/approach

By applying goal programming (GP) technique, this paper presents an alternative quantitative method for assisting a contractor to find out its own most competitive strategy in bidding for construction contracts where multiple selection criteria are adopted. A goal programming optimal bidding strategy (GP‐OBS) model is introduced to help a contractor generate an optimal resources allocation solution. A hypothetical example is used to show the procedures of using the model GP‐OBS.

Findings

This paper demonstrates that the GP technique can help contractors in producing an optimal bidding strategy which enables the contractor to present his/her maximum competitiveness in implementing project multiple objectives.

Originality/value

The solution from the model helps contractors to decide the optimal level of resources to be consumed within the resource limitations. The model GP‐OBS provides a new approach in assessing contractor overall competitiveness.

Keywords

Citation

Tan, Y., Shen, L., Lu, W. and Shen, Q. (2008), "Multiple‐objective bidding strategy using goal programming technique", Management Decision, Vol. 46 No. 4, pp. 656-672. https://doi.org/10.1108/00251740810865111

Publisher

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Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited