Tender simulation using the Friedman method in factory buildings project

Winning a project tender with a large profit and a low bid value is an obstacle for the contractor. An accuracy level of 5% to 10% in cost estimates is required when preparing bids; to overcome this, markup analysis is needed to increase the probability of winning and profit according to expectations. The methods used to find the appropriate probability of winning and expected profit are the Friedman method. The results of this research in the case study of the project PT. XYZ, three contractors took part in the tender and were given the symbol PT. C1, PT. C2, and PT. C3. The results of the data analysis of the probability of winning the tender for the construction project work between PT. C1, PT. C2, and PT. C3 shows that PT. C1 has a 97.90% probability of winning using the Friedman method. The highest profit amount using the Friedman method, and in line with expectations, when participating in the tender for construction project work between PT. C1, PT. C2, and PT. C3 is PT C1with profit 13.22%.