Q4. (Modified from Ex 3-4, Stark and Nicholls 2005, page 60, unbalanced bidding). Formulate a linear programming program for the following unbalanced bidding problem and solve it by using MATLAB function linprog. A contractor will submit a unit-price bid on the foundation work for a concrete dam. After reviewing the project and considering the potential competitive bidders, he sets his total bid at $750,000. The client's and bidder's quantity estimates are tabulated below. The last column is the bidder's estimate of the acceptable range within which he can submit unit prices. Given the estimated construction schedule (tabulated) and an interest rate of 8%, determine unit prices for the four work packages which will maximize the present worth of his income Bidder's estimated Quantity estimates Allowable range construction schedule Work Package for unit prices Client's Bidder's Year 1 Year 2 Year 3 Earth excavation, cu yd 500,00 $0.80-1.80 450,000 250,000 200,000 Rock excavation, cu yd 30,000 40,000 30,000 10,000 6.00-11.00 Drilling, ft 500 1,300 1,800 1,800 6.00-13.00 Grouting, cu yd 300 400 400 18.00-36.00 i In unit-price bidding, bids are invited per unit of each work package, and the total bid is formed based on the client's quantity estimate. The contract is usually awarded to the bidders of the lowest total bid and provides for periodic (monthly) payments for the units completed during each period. Once the contract is awarded, the total bid becomes irrelevant because the proposed quantities usually differ from the actual quantities and the actual project cost seldom equals the total bid. A bidder can place relatively high unit bids on work packages to be completed early in the project and lower bids on later items. In this way, the bidder obtains partial payment in advance, which can be used to finance subsequent stages of the contract. This is the so-called unbalanced bidding strategy widely used in unit-price bidding. In this question, assume the actual quantities are equal to the bidder's s estimates Q4. (Modified from Ex 3-4, Stark and Nicholls 2005, page 60, unbalanced bidding). Formulate a linear programming program for the following unbalanced bidding problem and solve it by using MATLAB function linprog. A contractor will submit a unit-price bid on the foundation work for a concrete dam. After reviewing the project and considering the potential competitive bidders, he sets his total bid at $750,000. The client's and bidder's quantity estimates are tabulated below. The last column is the bidder's estimate of the acceptable range within which he can submit unit prices. Given the estimated construction schedule (tabulated) and an interest rate of 8%, determine unit prices for the four work packages which will maximize the present worth of his income Bidder's estimated Quantity estimates Allowable range construction schedule Work Package for unit prices Client's Bidder's Year 1 Year 2 Year 3 Earth excavation, cu yd 500,00 $0.80-1.80 450,000 250,000 200,000 Rock excavation, cu yd 30,000 40,000 30,000 10,000 6.00-11.00 Drilling, ft 500 1,300 1,800 1,800 6.00-13.00 Grouting, cu yd 300 400 400 18.00-36.00 i In unit-price bidding, bids are invited per unit of each work package, and the total bid is formed based on the client's quantity estimate. The contract is usually awarded to the bidders of the lowest total bid and provides for periodic (monthly) payments for the units completed during each period. Once the contract is awarded, the total bid becomes irrelevant because the proposed quantities usually differ from the actual quantities and the actual project cost seldom equals the total bid. A bidder can place relatively high unit bids on work packages to be completed early in the project and lower bids on later items. In this way, the bidder obtains partial payment in advance, which can be used to finance subsequent stages of the contract. This is the so-called unbalanced bidding strategy widely used in unit-price bidding. In this question, assume the actual quantities are equal to the bidder's s estimates