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In the construction industry while contractors bid for jobs that are highly profitable and will maximize cash flow in a limited time among many requests for proposals in today's competitive conditions, they experience intuitive and experiential difficulties in making a balanced decision between the benefit of the possibility of winning high-return projects and the cost of bidding. In this study, a decision support model to be used in this decision-making process of a contractor company operating in the electromechanical contracting sector abroad: together with a multi-criteria valuation analysis, one of which determines the total bid price and the other of which distributes this amount to the quantities of work breakdowns in a way that maximizes cash flow. The Analytical Hierarchy Process (AHP) is employed and two linear programming methods are studied.

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Contractor’s Bidding Decision Modeling, Calculating Bid Price, and Distributing to Maximize Cash Flow

  • 章节

  • 发表日期：

    2025年

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  • Cihat Doğan,
  • Eyüp Çetin

摘要

In the construction industry while contractors bid for jobs that are highly profitable and will maximize cash flow in a limited time among many requests for proposals in today's competitive conditions, they experience intuitive and experiential difficulties in making a balanced decision between the benefit of the possibility of winning high-return projects and the cost of bidding. In this study, a decision support model to be used in this decision-making process of a contractor company operating in the electromechanical contracting sector abroad: together with a multi-criteria valuation analysis, one of which determines the total bid price and the other of which distributes this amount to the quantities of work breakdowns in a way that maximizes cash flow. The Analytical Hierarchy Process (AHP) is employed and two linear programming methods are studied.