The construction contract bidder homogeneity assumption: An empirical test

Martin Skitmore*

*Corresponding author for this work

Research output: Contribution to journalArticleResearchpeer-review

46 Citations (Scopus)
1 Downloads (Pure)

Abstract

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.

Original languageEnglish
Pages (from-to)403-429
Number of pages27
JournalConstruction Management and Economics
Volume9
Issue number5
DOIs
Publication statusPublished - Sep 1991
Externally publishedYes

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