'Bid Compensation Decision Model for Projects with Costly Bid Preparation'

摘要

The writer thanks the discusser for his thoughtful discussion, constructive suggestions, and appreciation of the paper. In fact, one of the major research goals of the writer is to provide rigorous theoretical foundations, instead of intuition- or survey-based arguments, for better decision making in construction management. The writer is excited to see this discussion, since it indicates that the theoretical study can be appreciated by practitioners and can provide insights and reasoning logic for decision making to practitioners. The objective of the model is to study theoretically the impact of bid compensation. Although the equilibrium conditions for effective bid compensation are solved, it does not mean that the model supports the use of bid compensation. On the contrary, as indicated in the paper, because of the practical implications of the equilibrium conditions, bid compensation is concluded to be ineffective in general. Throughout his rich practical experiences, the discusser partly confirms the ineffectiveness of bid compensation, even though the discusser may have different hypotheses for such findings. In response to the discussion, the writer has organized this closure to closely follow the points made by the discusser.