ArtculoCOENG3567.pdf (5.54 MB)
Quick abnormal-bid-detection method for construction contract auctions
journal contribution
posted on 2018-04-30, 13:25 authored by Pablo Ballesteros-Perez, Martin Skitmore, Raj Das, Maria Luisa del Campo-Hitschfeld© 2015 This work is made available under the terms of the Creative Commons Attribution 4.0 International license,. Noncompetitive bids have recently become a major concern in both public and private sector construction contract auctions. Consequently, several models have been developed to help identify bidders potentially involved in collusive practices. However, most of these models require complex calculations and extensive information that is difficult to obtain. The aim of this paper is to utilize recent developments for detecting abnormal bids in capped auctions (auctions with an upper bid limit set by the auctioner) and extend them to the more conventional uncapped auctions (where no such limits are set). To accomplish this, a new method is developed for estimating the values of bid distribution supports by using the solution to what has become known as the German Tank problem. The model is then demonstrated and tested on a sample of real construction bid data, and shown to detect cover bids with high accuracy. This paper contributes to an improved understanding of abnormal bid behavior as an aid to detecting and monitoring potential collusive bid practices.
Funding
The research reported in this paper has been funded in Chile by Chilean National Commission of Scientific and Technologic Research under the Program Chilean National Fund of Scientific and Technologic Research Initiation into Research 2013 (Project 11130666).
History
School
- Architecture, Building and Civil Engineering
Published in
Journal of Construction Engineering and ManagementVolume
141Issue
7Citation
BALLESTEROS-PEREZ, P. ...et al., 2015. Quick abnormal-bid-detection method for construction contract auctions. Journal of Construction Engineering and Management, 141(7): 04015010Publisher
AsceVersion
- VoR (Version of Record)
Publisher statement
This work is made available according to the conditions of the Creative Commons Attribution 4.0 International (CC BY 4.0) licence. Full details of this licence are available at: http://creativecommons.org/licenses/ by/4.0/Publication date
2015Notes
This is an Open Access Article. It is published by Asce under the Creative Commons Attribution 4.0 Unported Licence (CC BY). Full details of this licence are available at: http://creativecommons.org/licenses/by/4.0/ISSN
0733-9364Publisher version
Language
- en