Author: Editorial Team

As the true cost of construction and hard/soft infrastructure delivery is not known until the completion of a project, contractor selection and the risk of selecting a winning bidder that has underestimated the cost of the contract is a major concern in procurement. This can lead to the winner’s curse, a term that refers to the difference between the lowest and second lowest bid, and the consequences of the bid price being too low to cover the costs including a reasonable return.