Developing a Tender Pricing Model Based on Combination Approach for Two Staging Tenders

carries out to develop a competitive tender pricing model in the two stage tenders.
This study uses combinational approach to pricing in two stage tenders and based on this approach winning distribution function has been developed according to bidder preferences. Winning distribution function determines the winning probability of each offer prices according to normalized prices.
In order to considering cost and margin, after developing model, by defining a new variable, the cost of the project inserted in the model. Then by analyzing their attendance objectives in tenders, could determine intended winning probability and accordingly correspond price to that probability will be determined.
Finally a case study has been carried out based on developed model and the result of model application described. Practical application of the model shows that it will lead to improving decision making process and determining suitable price correspond to intended wining probability in tenders, and help contractor to gain a competitive edge in bidding. The developed model has been validated with actual projects collected from a survey of the engineering services