Analysis of Low Bidding and Change Order Rates for Navy Facilities Construction Contracts.
Abstract
This thesis is about one of the principal concerns of Government contract administration is the proper control of change orders. They are useful in resolving problems that would otherwise inhibit the satisfactory completion of contracts, but their overuse is an unnecessary drain on public funds. The purpose of this thesis is to evaluate what effects bidders of fixed-price Government construction contracts have on contract prices when the level of competition intensity increases. It is suggested that in a climate of intense competition, the winners of bid awards are usually not only willing to assume the risk of losing profits, but also are willing to improve their financial positions through excessive use of contract change orders. This premise is tested against a sample of actual construction contract data from the Western Division, U. S. Naval Facilities Engineering Command. Several conventional measures of the level of competition intensity are applied in regression and variance analyses. Author key words include: Construction contracts, Bidding, Change orders, Fixed-price contracts.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 1984
- Accession Number
- ADA150828
Entities
People
- J. R. Rosmond
Organizations
- Naval Postgraduate School