Features of Application of Relevant Approach in Decision Making to Participate in Tender for Assessment of Land

Abstract

The paper describes the features of relevant approach for decision making to participate (or not participate) in a tender for appraisment of land. The basis of this approach is the following: the greater is the number of non-won tenders, the greater is the amount of irrelevant costs, and company operations are less effective. Thus, the approach to use relevant and non-relevant indicators should be applied not to a particular tender, but at once to a group of tenders. This transforms the traditional notion of relevance and suggests that in certain situations the irrelevant costs are unchanged, and the presence of a negative relevant result, as to one of the orders, does not lead to the automatic rejection of its execution.

DOI: 10.5901/mjss.2014.v5n18p183