Determination of Disproportionate Tenders in Public Procurement

José Luís Fuentes Bargues

60 citations0/0 files storedJournal of Investment and Management

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Public Procurement and Policy Construction Project Management and Performance Auction Theory and Applications

Abstract

Public procurement is one of the fundamental pillars of the construction sector and the understanding of its statutory regulation is one of the keys to success. The government regulates the concept of disproportionate tenders to avoid deals that are too low, something which could jeopardise the execution of the work or cause problems during implementation such as conflicting prices, project modifications and delays. The criteria for determining the disproportionality of the offers are numerous and each contracting authority determines which to use in each process by carrying out a comparative analysis. The results show that the formulas of disproportionality based on a percentage of the bid price are not useful, and the convenience of formulas based on the determination of a low reference which is calculated from both the average of the offers and the standard deviation.

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References

2002A slacks-based measure of super-efficiency in data envelopment analysis 2011Using a DEA-cross efficiency approach in public procurement tenders 2006Price and Nonprice Criteria for Contractor Selection 2010Contractor’s decision for bid profit reduction within opportunistic bidding behavior of claims recovery 2007Contractor’s Opportunistic Bidding Behavior and Equilibrium Price Level in the Construction Market

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