Research On Price Decision Of International Project Bid Inviting Negotiation

Bid-inviting of international engineering project developed rapidly and is paid more and more intention on. When the tenderers of international engineering project choose the bidders, they face many negotiation factors and different bidders will provide different offers. Therefore, the tenderers should take scientific and effective judgment method, quantize the utility value of offers from different bidders as well as integrated effect of single bidder, and choose the bidder who is benefit most for us.Although the International project bid inviting has been widely studied, but there has not a good model to quantify it. It is analyzed the negotiation way of international engineering project and general procedure in this paper, introduced the negotiation model of one-to-many with two stages as well as negotiation method and offer strategy of this model. Then this model is applied for Bid-inviting negotiation of international engineering project, offer strategy is made, and decision-making strategy of the tenderer is also raised. The concept, adjustment factor of exchange rate risk is introduced into utility function, which solved the problem of limitation of parameter setting of tenderer's offer in the past researches, improved the negotiation decision-making strategy of international engineering project. At last, the bid-inviting price decision-making of international engineering project negotiation is realized by an example of calculation, which tested the effectiveness of the model.It is obtained the conclusions in this paper by the research on the case of the international engineering project bid-inviting negotiation:(1) It is chosen the bidder whose integrated utility of offer is better by the bid-inviting mode with two stages which is adapted for bid-inviting negotiation. (2) It is necessary to consider the factor of exchange rate risk in the international engineering project negotiation. The tenderer introduce the adjustment factor of exchange rate risk into the calculation of offer utility function by comparing the offer utility and making decision, the factor of exchange rate risk will adjust the offer utility value of bidders and affect the whole result of international engineering bid inviting.