New model boosts construction profits by optimizing bidding prices and reducing risks.
A new model was developed to help construction contractors decide on the best bidding price. By analyzing historical data, the model estimates key parameters like the number of competitors and project costs. It then uses a mathematical approach to maximize expected profit while considering acceptable risk levels. The model was tested with numerical problems and a real-world case study, showing it can reduce cost estimation errors and increase profits for contractors. This research offers a practical way for contractors to determine optimal bidding prices in construction projects.