Bidding Strategy Using Friedman Model for Building Construction Project in Banjarbaru Indonesia
Journal of Civil, Construction and Environmental Engineering
Volume 1, Issue 1, December 2016, Pages: 12-17
Received: Oct. 17, 2016; Accepted: Oct. 28, 2016; Published: Nov. 19, 2016
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Authors
Candra Yuliana, Civil Engineering Department, Lambung Mangkurat University, Banjarbaru, Indonesia
Retna Hapsari Kartadipura, Civil Engineering Department, Lambung Mangkurat University, Banjarbaru, Indonesia
Syahril Taufik, Civil Engineering Department, Lambung Mangkurat University, Banjarbaru, Indonesia
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Abstract
Determining a good price in competitive bidding is a common problem for the construction company. An offer price could be too high for contractors hoping to get a big profit with no risk to get the project, or too low in the hope of getting a lot of projects but at the risk of losing opportunity to get benefits and risks of failure in carrying out the work.Friedman model was selected for bidding strategy purpose. The model was applied to a number of data offering price of contractors bidding for the construction of buildings in the city Banjarbaru starting in 2012-2015, which has Owners’s estimate with a range between IDR 248 million to IDR 4.8 billion. Then the test data results with the data that has been set aside for testing the model.Friedman bidding strategy models produced Mark-Up valued at -9% for multi normal distributions and -5% for a single normal distribution. Mark-Up is validated on the winning bidder of IDR 478,590.00. The tests produced the offering price of IDR 478,560,210.00 (with Mark Up -8.84%) and IDR 498,726,250.00 (with Mark Up -5%). So Friedman models with Multi Normal Distribution can beat the lowest bid.
Keywords
Procurement, Bidding Strategy, Normal Distribution, Friedman, Mark Up
To cite this article
Candra Yuliana, Retna Hapsari Kartadipura, Syahril Taufik, Bidding Strategy Using Friedman Model for Building Construction Project in Banjarbaru Indonesia, Journal of Civil, Construction and Environmental Engineering. Vol. 1, No. 1, 2016, pp. 12-17. doi: 10.11648/j.jccee.20160101.12
Copyright
Copyright © 2016 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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