Abstract:
There are many factors affecting the decision making for the bidding. One of the most conflicting and frequently mentioned
problem is the bidding price that will maximize both profit and chance of winning. Of all the factors, the behavior of competitors is one of the
most important. It is believed that by knowing the bidding behaviors of competitors in each region can increase the chance of winning and
profits. This research studies the bidding behaviors of contractors engaged in the Highway Department road maintenance projects. A total of
103 bidding results occurred between 1999-2003 were collected. Twenty two companies were participating in the bidding during that period.
The result of the study indicates that the average of mark up size ranges between -17.28 percent to -0.018 percent of the reference price.
Classified by region, the study reveals that the average of the central region is - 4.06 percent, the north is -0.046 percent, the north-east is
0.22 percent, the south is -2.78 percent and the east is -3.23 percent. In addition to the result, it is also found that the number of competitors
involved in each bid and the number of projects in the region play a significant role in establishing bidding prices.