Contractor’s decision for bid profit reduction within opportunistic bidding behavior of claims recovery

Contractors may decide to reduce the bid profit on basis of opportunistic bidding behavior (OBB) under potential claims recovery for performing changes in work or likely employer’s mismanagement. An analytical evaluation in a decision tree framework is used to represent the expected events and the state of information for OBB decision and their possible outcomes. Quantitative evaluations are introduced to set the likely chance of a claim...