B.E. (Civil (Construction Management), Hons 1)
Postgraduate Research Student
School of Civil Engineering, Room 360
Phone: +61 2 9351 4392
Fax: +61 2 9351 3343
Research project - Price formation in construction contract auctions
Supervisor: Dr Bee Lan Oo
Associate Supervisor: Dr Li Liu
Construction contract auctions are the core method by which work is distributed in the construction industry. In construction contract auctions, first price sealed-bid auctions are the most common type. Past studies have shown that contractors strive to bid competitively via learning based on their experiences in past bidding attempts, a digression from Friedman's (1956) tendering theory, where it is assumed that there is no learning and no consideration for markets and market conditions. (Runeson and Skitmore, 1999)
In developing the theoretical framework, this study applies elements of microeconomic theory and organisational learning theory. Using an experimental research design, it examines the price formation process in construction contract bidding by inviting both experienced and inexperienced bidders to participate in a Web-based bidding experiment. The experiment simulates the market conditions over a period of time. The specific objectives of this study are (i) to examine the competitiveness of contractors in new market conditions, (ii) to investigate the learning behaviour of new market entrants, and (iii) to investigate the effect of experience on new market players.
The findings from this research will add to both our theoretical and empirical understanding of construction bidding: an understanding of the process of changes in the price of building work, and how the market conditions affect bidder behaviour and performance.
- Soo A and Oo BL (2010), The effect of information feedback in construction bidding, Australasian Journal of Construction Economics and Building (under review).
- Soo A and Oo BL (2010) The effect of information feedback in construction bidding, AUBEA 2010 Conference, Melbourne, 14-16 July.
- Oo BL and Soo A (2010) Using bidding experiment to test the effects of learning and information feedback on construction bidding, AUBEA 2010 Conference, Melbourne, 14-16 July.
Learning & Teaching
- CIVL3812 – Project Appraisal
- CIVL3805 – Project Scope, Time and Cost Management
- CIVL4814 – Project Procurement and Tendering