TY - JOUR
T1 - The construction contract bidder homogeneity assumption: An empirical test
AU - Skitmore, Martin
N1 - Copyright:
Copyright 2015 Elsevier B.V., All rights reserved.
PY - 1991/9
Y1 - 1991/9
N2 - This paper describes an empirical study to test the proposition that all construction contract bidders are homogeneous, i.e. they can be treated as behaving collectively in an identical (statistical) manner. An examination of previous analyses of bidding data reveals a flaw in the method of standardizing bids across different size contracts and a new procedure is proposed which involves the estimation of a contract datum. Three independent sets of bidding data were then subjected to this procedure and estimates of the necessary distributional parameters obtained. These were then tested against the bidder homogeneity assumption, resulting in the conclusion that the assumption may be appropriate for a three-parameter lognormal shape, but not for scale and location.
AB - This paper describes an empirical study to test the proposition that all construction contract bidders are homogeneous, i.e. they can be treated as behaving collectively in an identical (statistical) manner. An examination of previous analyses of bidding data reveals a flaw in the method of standardizing bids across different size contracts and a new procedure is proposed which involves the estimation of a contract datum. Three independent sets of bidding data were then subjected to this procedure and estimates of the necessary distributional parameters obtained. These were then tested against the bidder homogeneity assumption, resulting in the conclusion that the assumption may be appropriate for a three-parameter lognormal shape, but not for scale and location.
UR - http://www.scopus.com/inward/record.url?scp=0000885441&partnerID=8YFLogxK
U2 - 10.1080/01446199100000032
DO - 10.1080/01446199100000032
M3 - Article
AN - SCOPUS:0000885441
SN - 0144-6193
VL - 9
SP - 403
EP - 429
JO - Construction Management and Economics
JF - Construction Management and Economics
IS - 5
ER -