The Mathematical Model Analysis by Direct Negotiation of the Price in Small Procurements for Pharmaceutical Factory Construction Projects

Wei Zeng 

COMPUTER MODELLING & NEW TECHNOLOGIES 2014 18(12C) 604-608

Tongji University Shanghai Tongji Engineering Consulting Co.,Ltd. 200092, China

This paper is to study the mechanism by direct negotiation of the price in small procurements for the pharmaceutical factory construction projects. Provided that two parts estimate the construction price as the sum of cost and profit, the paper forms target price for owners and contractors after adjustment of the profit and price by each other according to the owner and contractor’s principal and subordinate, friendly and information asymmetry situation, then imitates the contract price according to the owner and contractor’s principal and subordinate situation.