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Price Bidding & Finacial Management Essay

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PRICE BIDDING & FINANCIAL MANAGEMENT

ANTI-FLOODING MARINE DEFENCE INFRASTRUCTURE DEVELOPEMT SCHEME



PFI BIDDING STRATEGY REPORT FOR A ROAD INFRASTRUCTURE DEVELOPMENT SCHEME

CONTENTS

1.0 INTRODUCTION

2.0 DECISION TREE ASSUMPTIONS & CALCULATIONS

3.0 DECISION TREE

4.0 APPRAISAL OF RESULTS

5.0 REFINEMENT OF RESULTS

6.0 ANALYSIS OF PROTECTION

7.0 CONCLUSION & RECOMMENDATIONS

BIBLIOGRAPHY


1.0 INTRODUCTION

This report has been prepared in to provide financial advice on two flood defence infrastructure development scheme briefs which are to be used to base by the client to base a bid. The projects are mutually exclusive and the client initially believes the lower cost brief is the more suitable upon which to bid for the work.

The information provided by Client for each project brief is detailed in figure 1 below:

Construction Cost Bid Preparation Cost
Brief A (High) £850M £0.50M
Project B (Low) £750M £0.45M

Figure 1: Project Particulars

In addition to the above costs the probability of success for a bid based upon each brief has been indicated to be 0.3 with a low bid and 0.20 with a high bid.

The aim of this report is to financially appraise the above schemes with a view to establishing the optimum strategy for consideration. When undertaking a decision of this nature, namely a multi option decision under uncertainty, the best strategy is to prepare a probability or decision tree.

2.0 DECISION TREE ASSUMPTIONS & CALCULATIONS

2.1 ASSUMPTIONS

In order to carry out any appraisal and associated decision making process there a number of assumptions need to be made. In preparing the decision tree contained in Section 3.4 of this report the following assumptions have been made with respect to both the information that has been provided and appropriate assumptions made for any information that has not been provided:

• Assumed that the cost of preparing the bid submission is up until the successful award...

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"Price Bidding & Finacial Management". Anti Essays. 13 Dec. 2018

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APA Citation

Price Bidding & Finacial Management. Anti Essays. Retrieved December 13, 2018, from the World Wide Web: http://snehaedu.com/free-essays/Price-Bidding-Finacial-Management-63592.html