Purpose – This paper aims to provide a solution that allows a contractor to present its maximum competitiveness in meeting the multiple objectives defined by a project client in bidding for a contract. Design/methodology/approach – By applying goal programming (GP) technique, this paper presents an alternative quantitative method for assisting a contractor to find out its own most competitive strategy in bidding for construction contracts where multiple selection criteria are adopted. A goal programming optimal bidding strategy (GP‐OBS) model is introduced to help a contractor generate an optimal resources allocation solution. A hypothetical example is used to show the procedures of using the model GP‐OBS. Findings – This paper demonstrates that the GP technique can help contractors in producing an optimal bidding strategy which enables the contractor to present his/her maximum competitiveness in implementing project multiple objectives. Originality/value – The solution from the model helps contractors to decide the optimal level of resources to be consumed within the resource limitations. The model GP‐OBS provides a new approach in assessing contractor overall competitiveness.
Management Decision – Emerald Publishing
Published: May 2, 2008
Keywords: Tendering; Construction industry; Contracts; Competitive strategy; Objectives