Tag Archives: Cost-Overrun Percentage

Decision Cost Model for Contractor Selection

Authors: Victor J. Apodaca and Peter C. Anselmo

Applying decision cost analysis provides the U.S. Government an alternative to the existing process for selecting construction contractors. The Decision Cost Model (DCM) proposed in this article evaluates each prospective contractor against computed cost factors and uses the contractor’s cost estimates to compute the total expected cost for construction projects. The DCM can be used with any number of contractors and with any number of construction division categories.

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