A method is presented for unbalancing bids and optimizing the allocation of overall project profits to individual activities by considering the financial parameters of a project (bid mark-up and projected cash flow), in conjunction with lowering the exposure to possible financial disorder in the project. The method utilizes the general concept of entropy and a variant of it (hereby termed 'monetary entropy', H M) as measures of a project's perceived level of disorder, in order to distribute the total bid mark-up to the project activities. The entropy-based bid-unbalancing method seeks to minimize a possible financial disorder (the monetary entropy) resulting from limited monetary resources available to the project and from badly developed project cash flows. The intended primary users of the method are contractors during the initial bidding stage of a project.
Download Info
To download:
If you experience problems downloading a file, check if you have the
proper application to
view it first. Information about this may be contained
in the File-Format links below. In case of further problems read
the IDEAS help
page. Note that these files are not on the IDEAS
site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Did you know? All full texts are decentralized with the publishers, none reside on this server, thus making it possible to offer this service for free to all parties.