Multiple-objective bidding strategy using goal programming technique

Yongtao Tan, Liyin Shen, Weisheng Lu, Qiping Shen

Research output: Journal article publicationJournal articleAcademic researchpeer-review

16 Citations (Scopus)


Purpose - This paper aims to provide a solution that allows a contractor to present its maximum competitiveness in meeting the multiple objectives defined by a project client in bidding for a contract. Design/methodology/approach - By applying goal programming (GP) technique, this paper presents an alternative quantitative method for assisting a contractor to find out its own most competitive strategy in bidding for construction contracts where multiple selection criteria are adopted. A goal programming optimal bidding strategy (GP-OBS) model is introduced to help a contractor generate an optimal resources allocation solution. A hypothetical example is used to show the procedures of using the model GP-OBS. Findings - This paper demonstrates that the GP technique can help contractors in producing an optimal bidding strategy which enables the contractor to present his/her maximum competitiveness in implementing project multiple objectives. Originality/value - The solution from the model helps contractors to decide the optimal level of resources to be consumed within the resource limitations. The model GP-OBS provides a new approach in assessing contractor overall competitiveness.
Original languageEnglish
Pages (from-to)656-672
Number of pages17
JournalManagement Decision
Issue number4
Publication statusPublished - 14 May 2008


  • Competitive strategy
  • Construction industry
  • Contracts
  • Objectives
  • Tendering

ASJC Scopus subject areas

  • General Business,Management and Accounting
  • Management Science and Operations Research


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