【正文】 arrive at a bidding price is needed. Second, a basic understanding of how and in what circumstances price is influenced by the apportionment of risk is needed. However, little empirical research exists about the process used by contractors to put together a bidding price, as shown in Appendix I. Without a precise understanding of how contractors price a bid and account for risks in reality, it would be difficult to conceptualize analytical models for approaching risk response in the way that it normally happens in practice. Risk assessment should have a serious influence on a contractor’s pricing strategy, but other factors also affect price. The price clients are willing to pay for construction work depends not only on their available resources, but also on what other sellers (., contractors) in the market are willing to offer for the same product. (See the microeconomic theory of the behavior of individual petitive markets in Lipsey 1979, p. 93.) 2 A bidding price may be dependent on the market or petitive environment in which it takes place. Brook (2020) explains that bidding often involves two processes. First, estimating is the stage in which the actual project costs are considered. This process may depend on the level of expertise in a contractor’s estimating department. Second, adjudication is the stage in which the directors of a firm take a mercial view of the estimated cost in the context of the firm’s particular circumstances, market conditions, and risk. Management will ultimately try to pitch the bidding price between cost and value to win the work. (See the explanation in Murdoch and Hughes 2020, pp. 138–139.) The approach used by contractors to evaluate risk in the process of pitching their bidding price to respond to these factors is not always clearly explained in the literature, as shown in Appendix I. However, several analytical approaches have been proposed to help contractors deal with risk when a sufficient understanding of how contractors actually price a bid and consider risks in reality, it would be hard to conceptualize analytical models that align with what contractors actually do. However, as Skitmore and Wilcock (1994, p. 142) acknowledged, it is hard to get contractors to participate in studies of this nature primarily because of the mercially sensitive data involved. Several studies of contractors have shown that contractors are often reluctant to fully account for the cost of risk in their bidding price to avoid inflating their price with risk allowances and bee unpetitive. [See, for example, an interview study of 12 . contractors by Smith and Bohn (1999) and a questionnaire study of 400 . contractors by Mochtar and Arditi (2020).] Thus, it is not surprising that several studies have shown that most contractors rarely approach the incorporation of risk in their bid proposals according to the contingency allocation theory prescribed by most analytical models. It also implies that other risk response mechanisms are probably used by contractors that could be shared and used to guide practical risk analysis techniques. Background Risk is a part of business endeavors because of uncertainty (Flanagan and Norman 1993。 30 in the United Kingdom studied by Akintoye and MacLeod (1997)。 a fuzzy logicbased artificial neural work model by Liu and Ling 1 (2020)。 Contractors。 Participant observation。 a fuzzy set model by Paek et al. (1993)。 12 in the United States studied by Smith and Bohn (1999)。 Fischer and Jordan 1996). Portfolio theory and capital market theory stipulate that total risk consists of 3 two types of risk (Fischer and Jordan 1996). First, systematic risk, which cannot be controlled, emanates from external factors such as acts of God, natural disasters, market risk, interestrate risk, and purchasingpower risk. Second, unsystematic risk, which can be controlled, relates to organizationspecific factors such as business risk and financial risk. These forms of risk are fundamental to the construction (internal and external risk) and the insurance (pure and speculative risk) industries. [See, for example, a study on risk allocation in tenders by Tah et al. (1993) and the textbook about insurance by Dorfman (2020).] As shown in the financial analysis textbook by Fischer and Jordan (1996), one way of pricing a product to meet expected profit is to quantify risk and build a required rate of return that represents a riskless rate plus pensation for individual risk factors. Connolly (2020) explained that risk has cost, which can sometimes be catastrophic. However, it is not easy to predict or to price risk, as shown in a survey of the top 400 . contractors, which revealed that pricing is a plex and difficult task for entrepreneurs (Mochtar and Arditi 2020). According to a conceptual study by Mulholland and Christian (1999) in which an analytical approach was proposed for risk assessment in construction schedules, construction projects are initiated in plex and dynamic environments, resulting in circumsta