Evaluation of Unbalanced Bidding on Highway Projects

10 pages•Published: June 2, 2026

Abstract

Unbalanced bidding is a persistent problem in highway project contracts, especially with asphalt overlay projects where pay quantities are subject to significant variation. Under unit-price contracts, contractors can strategically inflate or deflate specific bid items to maximize cash flow, making it difficult to manage project costs. This research examines the frequency and trends of unbalanced bidding in the Texas Department of Transportation (TxDOT) overlay contracts within the Fort Worth and Houston districts. Using bid and engineer’s estimate records for 52 projects, the study quantifies item-level bid cost deviations and examines contractors’ bidding patterns to determine whether unbalanced bidding occurs in those contracts. Initial review indicates measurable unbalanced bidding in early-stage items such as Traffic Control. However, the study also found that the contractors are bidding higher on later-phase items, e.g., Asphalt Overlay and Pavement Marking. There is insufficient evidence to prove that systematic unbalanced bidding occurs in highway contracts executed by the Texas DOT. Further study is required, using more bid data points, to validate whether unbalanced bidding patterns occur in highway construction contracts.

Keyphrases: bid cost growth, bid items, overlay projects, texas department of transportation (txdot), unbalanced bidding

In: Wesley Collins, Anthony Perrenoud and John Posillico (editors). Proceedings of Associated Schools of Construction 62nd Annual International Conference, vol 7, pages 853-862.

Links:	https://easychair.org/publications/paper/rLjR
	https://doi.org/10.29007/h3sz

BibTeX entry

@inproceedings{ASC2026:Evaluation_Unbalanced_Bidding_Highway,
  author    = {Pramen Shrestha and Sankalp Paliwal},
  title     = {Evaluation of Unbalanced Bidding on Highway Projects},
  booktitle = {Proceedings of Associated Schools of Construction 62nd Annual International Conference},
  editor    = {Wesley Collins and Anthony Perrenoud and John Posillico},
  series    = {EPiC Series in Built Environment},
  volume    = {7},
  publisher = {EasyChair},
  bibsource = {EasyChair, https://easychair.org},
  issn      = {2632-881X},
  url       = {/publications/paper/rLjR},
  doi       = {10.29007/h3sz},
  pages     = {853-862},
  year      = {2026}}

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