Bidding Methods and Contract Awards: A Comparison with U.S. and International Methods

TitleBidding Methods and Contract Awards: A Comparison with U.S. and International Methods
Publication TypeThesis
Year of Publication2003
AuthorsHelmer, Ethan M.
Academic DepartmentConstruction Engineering Management
Thesis AdvisorBaker, Greg
DegreeBachelor of Arts in International Studies in Construction Engineering Management
Number of Pages38
Date Published06/2003
UniversityOregon State University
Thesis TypeUndergraduate
Keywordscomparison, Construction Engineering Management, contracts, methods

There are various types of contracts that can be awarded to construction companies throughout the U.S. Some of them include: design-build, hard bid and negotiated contracts. However, the most widely used method in the U.S., traditionally and currently, is the "low-bid" method for awarding contracts. Under this method, the contractor that offers the lowest dollar amount to complete a job is most often awarded the contract, even if the contractor is the least qualified for the job. This low-bid method of contractor selection can pose many problems for both owners and contractors who have a lot at stake in the construction industry, which is already risky. One approach to improve this situation is to compare methods used in the U.S. with those used in other countries and analyze their effectiveness. The purpose of this thesis is to present some of these other methods of bidding and awarding contracts throughout the world and to clearly analyze their advantages and disadvantages. Of course, no method will be without fault or criticism and it would take volumes of literature to fully analyze all of the different bidding methods that have ever existed. For the purposes of this thesis, however, a sample of the most commonly used systems in the U.S., Taiwan, Peru, Italy, Denmark, Germany and the U.K. will be discussed. These countries were selected based on the availability of research and for the purpose of offering a diversified sample of
international methods.