ABSTRACT
The tendering process involves two crucial decisions. The first is whether or not to bid and the second is associated with selection of a suitable mark up. Both decisions are of great importance as the success or failure of a company lies in their outcomes. This importance has been attracting many researchers in the last fifty years. Fuzziness in information on a new construction project, the client, the potential competitors, and the overall construction market make it a very complex process to decide whether to bid or not to bid on this project. Usually, this decision is derived from intuition and subjective judgement based on past experience (Ahmad 1990). However, such practice does not guarantee consistent decisions due to the lack of a binding mechanism that relates present cases to past patterns. Thus, a structured framework for making the bidding decisions can be of great help to construction contractors especially new contractors who do not have considerable experience in dealing with different bidding situations. The following section provides a brief review of the bidding literature.
