The possible sources of variation orders.

Special conditions in subcontractors' quotations. 

The mark-up percentage that has been included in the tender estimate.

Basis of cost estimate.

his cost estimate is higher than the lowest bid.

his competitor is able to produce a bid lower than his cost estimate.

he has a chance of winning.

his competitor is able to produce a bid equal to his cost estimate.

They have higher general overheads that put them into a disadvantaged position in bidding for smaller projects.

They have a preferred value range for projects to bid for.

They are more successful in making profits for large projects.

They are more successful in winning large projects.

A higher BCP indicates lower bid competitiveness.

The maximum bid competitiveness is denoted by BCP equals zero.

A zero BCP means a contractor’s bid is equal to the lowest bid.

A higher BCP indicates higher bid competitiveness.

higher

stationary

erratic

lower

many items of the preliminaries section cannot be priced until the full scope of work is known.

it needs to be priced by the top management in the tender adjudication meeting.

it is the most difficult section to be priced.

it is the easiest section to be priced.

a positive 

neutral

an inverse

no

They want to maintain the feel for the market.

They want to maintain presence in the market.

They want to increase their chances of winning a bid.

They want to stay in favour with clients.

A construction firm would have a significant market share.

The majority of the construction firms are privately owned.

Contractors are in weak bargaining position.

There are large number of small and medium-sized construction firms.

Contractor B with CECR of 0.95.

Contractor C with CECR of 1.00

Contractor A with CECR of 0.90.

Contractor D with CECR of 1.10