Study On Bidding Strategy Of EPC Project Based On Game Theory

In recent years,EPC general contracting mode has developed rapidly in China.Compared with the traditional construction mode,EPC general contracting mode solves the contradiction of clever design,procurement and construction separation to a certain extent,and realizes the effective control of the whole process schedule,cost and quality of the project.EPC general contracting mode brings more opportunities to construction enterprises,and also makes the competition between enterprises increasingly fierce.Moreover,due to the gaming behavior between the general contractor,the employer and the bidding competitors in the bidding process,it is still difficult for the general contractor to obtain the right to contract the project.Even if the bid is won,the benefits to the winning general contractor are dwindling because of the fierce competition between the parties.As the first element for the general contractor to participate in the bidding activities,the quotation has a crucial impact on the success of the bid,but also relates to the profit the enterprise can earn after obtaining the general contracting right.Therefore,it is an important topic to deeply discuss the bidding strategy of EPC project to meet the actual demand.project bidding,including EPC general contracting model,characteristics of EPC project bidding and common bidding techniques.Secondly,it introduces the basic theoretical knowledge of game theory,including its basic concept,several elements and game model classification.Thirdly,the paper analyzes the relationship between EPC project bidding and game theory.Under the support of these theoretical foundations,based on the different game objects in the bidding process,the game behavior between the general contractor and the owner(the employer)and the game behavior between the general contractor and the bidding competitors are studied respectively from the perspective of the general contractor.The details are as follows:(1)As for the game behavior between the general contractor and the owner(the employer),through the establishment of the game tree analysis model,it is proved that in the bidding process,the owner(the employer)is inclined to the general contractor with low price no matter whether the lowest bid method is adopted or the comprehensive evaluation method is adopted.So the general contractor bids at a lower price and has a better chance of winning.(2)As for the game behavior between the general contractor and the bidding competitors,according to the theory of game theory,the game models of bidding quotation are established respectively based on the method of lowest bid andcomprehensive evaluation,which are commonly used in EPC project bidding evaluation.When selecting the lowest-price bid method for bid evaluation,through the method of solving the static game optimal response quotation(strategy)among the general contractors participating in the bidding under incomplete information,the optimal quotation model is constructed,the model is solved and analyzed,and the theoretical optimal quotation formula is finally obtained.When selecting the comprehensive evaluation method to evaluate the bid,the optimal bidding quotation model is constructed based on the benchmark price formula and the deduction formula in the field of EPC project bidding.(3)Through the discussion of the quotation model and its application in the actual EPC project bidding quotation decision,it is proved that the quotation model constructed in this paper can effectively guide the general contractor to conduct the bidding quotation and improve its probability of winning.