This report analyses and describes how the bid/no-bid decisions are made at one ICT service company. The analysis is based on current available research within the area of multi criteria decision analysis to enhance the company’s decision process. It proposes how the bid engagement decision can be structured and evaluated. Through a questionnaire at the ICT company, data from its own bids was collected to identify the factors perceived to be relevant to the bid/no bid decision. It is found that the factors can vary depending on industry, market and potentially bid situation, requiring experts’ assessment of which factors to use for each bid situation. Concluding the study, an initial bid model is proposed, but with reservations due to lack of validation in real life situations. A recommendation to expand the existing bid model with probability distribution based risk estimates is made.

<p>Bid/no-bid decisions in international construction markets are considered difficult, being characterized by its uncertainties and complexities, especially in today’s highly competitive market. Additionally, it is claimed by some authors that many companies still utilize tools and methods that are fragmented, incomplete and rudimentary based on “personal intuition” or “previous-experience-based” (Han and Diekmann 2001a; Han and Diekmann 2001b). On the other hand, other authors emphasize that most of the bid/no-bid models found in the literature ‘remained in academic circles and did not find their way into the practical world’ (Wanous et al, 2000, pp.457). Thus, the focus of this work is to make a contribution towards the reduction of the actual gap between theoretical and practical bidding decision models and contribute to the development of a consistent model that could satisfactorily support the bid/no-bid decision for international construction projects. This way, an investigation of the practical bid/no-bid decision models is performed combined with an evaluation of the degree of applicability of theoretical models in practice. The research is based on a multiple case study analysis. The results suggest that although bidding decisions are still based on subjective judgments, the process applied by companies is formal and highly structured. It is a defined routine with a clear sequence of steps to be followed in which relevant information is analyzed by experienced staff. Additionally, it is designed to be followed by all bids in the companies, including formal presentations for the top management of the companies, who are actively involved in the decision. However, the results also reinforce that although some features of theoretical models can be observed in practice, none of them is being fully employed. Thus, it is possible to affirm that, although the current theoretical models bring some important highlights to bidding situations, they are still not fully suitable for the international construction environment. An important contribution can be done not only to the academic field but also to managerial one if future research focuses on the improvement of the practical models.</p>

Bid/no-bid decisions in international construction markets are considered difficult, being characterized by its uncertainties and complexities, especially in today’s highly competitive market. Additionally, it is claimed by some authors that many companies still utilize tools and methods that are fragmented, incomplete and rudimentary based on “personal intuition” or “previous-experience-based” (Han and Diekmann 2001a; Han and Diekmann 2001b). On the other hand, other authors emphasize that most of the bid/no-bid models found in the literature ‘remained in academic circles and did not find their way into the practical world’ (Wanous et al, 2000, pp.457). Thus, the focus of this work is to make a contribution towards the reduction of the actual gap between theoretical and practical bidding decision models and contribute to the development of a consistent model that could satisfactorily support the bid/no-bid decision for international construction projects. This way, an investigation of the practical bid/no-bid decision models is performed combined with an evaluation of the degree of applicability of theoretical models in practice. The research is based on a multiple case study analysis. The results suggest that although bidding decisions are still based on subjective judgments, the process applied by companies is formal and highly structured. It is a defined routine with a clear sequence of steps to be followed in which relevant information is analyzed by experienced staff. Additionally, it is designed to be followed by all bids in the companies, including formal presentations for the top management of the companies, who are actively involved in the decision. However, the results also reinforce that although some features of theoretical models can be observed in practice, none of them is being fully employed. Thus, it is possible to affirm that, although the current theoretical models bring some important highlights to bidding situations, they are still not fully suitable for the international construction environment. An important contribution can be done not only to the academic field but also to managerial one if future research focuses on the improvement of the practical models.

The English online auction creates great business opportunities. However, it¡¦s different from traditional English auction in long bidding time, wide area, high risk, massive information, and low switching cost. It makes bidders easy to search information of the goods but difficult to win the auction. The bidders' transaction cost structure has changed from information phase to agreement phase. So, the bidders need more precise supporting tools to help them make decisions. The aim of this research is to investigate two-person optimal bidding strategies under three dimensions of the decision space: the sequence decision (bid firstly or later), the bid decision (bid or quit), and the jump decision (minimum increase or jump bid). It is assumed that there are two bidders competing in one auction. Variables associated with the auction system include the floor price and the minimum increase. Variables associated with the bidders include the private value of the bidding object, and the cost of bid per turn. Strategies were evaluated based on the following criteria: who wins, how many turns to win the bid, the deal price, the utility of the winner and the loser, the probability of winning, and the expected utility. The results indicate that every strategy has its advantages and disadvantages under certain conditions. This research provides guiding rules for the bidders to choose a better strategy.

One of the main sources of risks that influence potential project success is the project selection decision, especially for international contractor organisations looking for an opportunity to invest in public private partnership projects in foreign countries. Project selection decision, which involves the bid/no bid decision, is a critical investment decision needs to be made based on concrete project evaluation and risks identifications; where negative-risk is in place if there is an absence of a rational basis at the time of making such a decision. Thus, negative consequences of such a decision might occur. The bid/no bid decision necessitates an effective project evaluation and risk identification from various aspects with consideration of several internal and external factors in order to achieve project success. Bidding for PPP projects overseas without efficiently applying risk management tools and techniques to evaluate both the project and the organisation’s current situation and capability might result either in large losses or consumption of time and resources that could have been avoided. The prime aim of this research is to develop a strategic investment decision model from the perspective of risk management, in order to facilitate the decisions of international contractors who intend to invest in public private partnership projects in the Saudi Arabian construction industry. This aim requires establishing a link between the risk management process and the organisation's strategy and its current situation, and identifying risks involved in the bid/no bid decision, PPP projects, and international investment in order to provide an effective computer-based model that is capable of organising the bid/no bid decision in a rational, logical, flexible, and user-friendly manner. The pragmatic triangulation philosophy approach is adopted as the best research methodology that allows two types of research strategy to be combined in order to accomplish the research aim and objectives. Thus, the methods used are qualitative interviews and a quantitative questionnaire-based survey. The findings of this research identified critical success factors of international contractors’ bidding decisions for PPP projects in the Saudi Arabian construction industry. In particular, seventy-seven factors affecting the bid/no bid decision were used as a foundation for development of a Strategic Risk Management Decision Model (SRMDM), available at www.srmdm.com.