This paper explains how to win a construction bid at the right costs. It suggests a structured, step-wise approach where at each step data analyses are carried out based on earlier bids, which are combined with assessments from an active risk management system, to come up with reliable estimates. To make sure all significant cost elements in the project are understood, linked together and communicated effectively, a building information model (BIM) is applied and worked on every step of the way from a preliminary, rough estimation to a final, complete bid. The paper derives from an ongoing development project to improve the bidding process in a Norwegian construction company. It intends to solve the following problem: How can we reduce the uncertainty in the bids we offer? The paper introduces a new way to organize the bidding process, including certain principles, to reduce uncertainty already in the project development, and attempts to increase our knowledge of the construction bidding process. The literature review is focused on theories of relevance to address the uncertainties inherent in construction bidding. The paper concludes that a project bid will always be burdened with uncertainty. Whereas traditional bidding theory gives support to the behaviour of economic agents who do the pricing to maximise profit, we find it relevant to introduce the concept of bounded rationality to explain why construction bidding is not a straightforward matter and how uncertainty management is fundamental to come up with the right costs.
Uncertainty management, bidding process, BIM
Aslesen, S. , Kristensen, E. , Schanche, H. & Heen, P. 2018, 'Winning the Bid – A Step-Wise Approach Using BIMto Reduce Uncertainty in Construction Bidding' In:, 26th Annual Conference of the International Group for Lean Construction. Chennai, India, 18-20 Jul 2018. pp 68-78