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<doi>/ISEC.res.2017.73</doi>
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<article-title>ECONOMIC SCORING FORMULAE IN<br/>
MULTI-ATTRIBUTE CONSTRUCTION AUCTIONS
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<author>PABLO BALLESTEROS-PEREZ<sup>1</sup>, EUGENIO PELLICER<sup>2</sup>,<br/>
and M<sup>a</sup> CARMEN GONZALEZ-CRUZ<sup>2</sup></author>

<aff><sup>1</sup>School of Construction Engineering and Management, University of Reading, Reading, UK<br/>
<sup>2</sup>Universitat Polit&#232;cnica de Val&#232;ncia, Valencia, Spain</aff>

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<title>ABSTRACT</title>
<p>Public tendering implies the free concurrence and competition of bidding companies
that certify their solvency, so that those companies proposing the most attractive bid,
both technically and economically, are awarded the contracts and carry them out
according to the same terms and conditions that they proposed. Generally, there is high
competition in public tendering, both concerning the number of bidders (constantly
increasing), as well as the profit margin (constantly decreasing). On the other side,
handling the procurement process, there is a contracting authority that spends public
money while trying to fulfill a particular socio-economic objective. This paper will
take the contracting authority's (auctioneer's) point of view which is in charge of
devising and implementing the awarding criteria, as well as choosing the best bidder.
Particularly, this paper will focus on some aspects of the Economic Scoring Formula
(ESF) design. The ESF constitutes a set of mathematical expressions that transform the
economic bids submitted by the bidders into scores, so that, eventually, the bidders can
be ranked and the best one selected. We will conclude that, despite apparently simple,
how ESF are configured eventually have profound consequences on bidding behavior
and some bidding results, like a higher or lower bid dispersion.</p>
<p><italic>Keywords: </italic>Bidding, Tendering, Competition, Economic bid, Bidder, Procurement.</p>
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