A multivariate approach to construction contract bidding mark-up strategies

A multivariate approach to contract bidding strategies in the construction industry is presented. This represents a radical departure from previous work in the field by using all available data on competing bidders. ‘Optimal’, ‘no loss’ and ‘break even’ mark-up strategies are derived and methods of parameter estimation proposed. A case study shows how the three strategic mark-up values are calculated against known competitors.