Utility Function Evaluation on Economic Variables - Construction Bidding Portfolios for Contractor Project Management

摘要

The work of contractors mainly comes from bidding strategy, they take this as the main process of the construction project life cycle. And also, it is the most important part to be discussed in the construction management field. This case study considers the economic environment changes, objectively uses the economic analysis of financial management and further subjectively evaluates the utility function to get the optimal return rate and the bid price at the maximum expected utility increasing under interest rate, inflation rate, reinvestment rate and other economic environment variables, to help decision-makers can make the most suitable and competitive bidding decision.