Engineering Statistics and Data Analysis in Construction Contract Bids

Abstract

The manuscript will introduce a new engineering statistical and data analysis which are used to evaluate successful construction contract bids. The methods used in the evaluation analysis includes coefficient of correlation (COC), hypothesis testing (Z-test for Estimated Cost, Z-test for % Mark-up and T-test). The evaluation was conducted on various construction company in accordance to sectors A to D. It has been concluded that the % mark-up percentage had a minor effect on the win or loss of the contract bid between different sectors. This research has found that (1) the null hypothesis cannot be rejected at the 5% significance level the samples showed no significant proof to which of the sectors is more successful in winning bids than other, (2) the regression analysis indicated that as the estimated cost increases the % mark-up decrease for all sectors, (3) the t-test illustrated no significant difference existing between the mean estimated cost and mean % mark-up between contracts won and contracts lost for all sectors, since the value of t Stat was less than t-critical two tailed the null hypothesis cannot be rejected and (4) there is a stronger correlation existing for the successful bids than unsuccessful.