Research On Decision-Making Of Bidding For Architectural Decoration Constructiong Project

With the development of the tendering and bidding system in China, most enterprises in architectural decoration industry have conducted market transactions for construction project with the form of tendering and bidding. Under market economy, the implement of tendering and bidding has been playing a great role in the aspects such as regulating the activities in architectural decoration market, carrying on open, fair and well-organized competition as well as improving the comprehensive strength of corporation.For the enterprises participated in bidding activity, it is especially important to bid rationally and win the bid with best price to create better economic benefits in fierce competition with strong opponents.From the perspective of bidding enterprises, this paper mainly focuses on two issues of architectural decoration enterprises in the activity of project bidding which need to be addressed, namely the decision-making for bidding opportunities and the decision-making for bid quote.In the study of decision-making for bidding opportunity, a bidding opportunity decision model is built based on fuzzy comprehensive evaluation method. Through the analysis of a variety of factors that affect the decision-making of bidding opportunity on the basis of previous research, the author proposes four categories of factors and sixteen sub-factors, and then a decision-making indicator system for bidding opportunities is built guided by certain principles. In order to evaluate the proposed bid project with fuzzy comprehensive evaluation method, a group of experts is organized to determine the weight of indicators at all levels by pairwise comparison. Then experts make fuzzy judge by scoring method. Evaluation result is obtained after fuzzy calculation. Finally, a specific bidding case is addressed to verify the feasibility and effectiveness of the model.In the study of decision-making for bid quote, the construction price is calculated based on the bill of quantities mode, then scientific and reasonable pricing decision is made by using both qualitative and quantitative analysis method. This part of the paper elaborates the concept and significance of the bill of quantities, the preparatory work for valuation by quantities bill as well as the valuation procedure for quotation. A decision of whether to give a low bid quote or a high one is made after qualitative analysis of four aspects including the owners, the project, the competitive environment and the bidder’s own situation. Within the quantitative analysis of the bid quote, historical data of bidding activities is used by experts to estimate the probability of winning the bid and the expected profit values, and then the Decision Tree is used to calculate gains and losses for each bid quote scheme. The scheme with greatest expected value is the optimal pricing scheme. Finally, a case of tender offer is analyzed to verify the feasibility and effectiveness of the decision-making method.The research achievements of this paper can be used as guidance and reference for the bidding activity of architectural decoration enterprises. The theoretical knowledge herein should be applied appropriately according to the actual bidding situation.