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Risk Pricing in Construction Tenders - How, Who, What
Construction Economics and Building
View Archive Info| Field | Value | |
| Title |
Risk Pricing in Construction Tenders - How, Who, What
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| Creator |
Tower, Marcus
Baccarini, David |
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| Subject |
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| Description |
Construction projects are most commonlyprocured in Australia by means of a traditionaldesign–tender–build model, whereby design islargely completed then contractors submittenders in a competitive environment.Construction contractors must consider riskswithin their tenders. This paper reports theresearch findings into pricing for risk incompetitive tenders by constructioncontractors. The research is based onstructured interviews with 10 contractingpersonnel; supplemented by 23 responses ofconstruction personnel from an online survey.Two common methods to price for risk are atrade-by-trade basis or an overall percentageor lump sum addition to the base estimate.Experience and intuition plays a significant rolein pricing for risk in tenders and the numberand type of people involved varies with projectsize, with greater involvement as project sizeincreases. The most significant risks priced intenders were: availability of resources; designor documentation errors; incomplete design;buildability issues; and inclement weather. Themost significant project factors considered bycontractors when pricing for risk in tenders are:value of liquidated damages; type ofcontract/procurement; completeness ofdocumentation; project complexity; and currentworkload. These risks and project factors areprimarily those over which the contractor haslimited or no control.
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| Publisher |
UTS ePRESS
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| Contributor |
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| Date |
2012-11-23
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion — — |
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| Format |
application/pdf
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| Identifier |
http://epress.lib.uts.edu.au/journals/index.php/AJCEB/article/view/2997
10.5130/AJCEB.v8i1.2997 |
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| Source |
Construction Economics and Building; Vol 8, No 1 (2008): AJCEB; 49-60
2204-9029 |
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| Language |
eng
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| Relation |
http://epress.lib.uts.edu.au/journals/index.php/AJCEB/article/view/2997/3180
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| Coverage |
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| Rights |
Copyright (c) 2008 Marcus Tower, David Baccarini
http://creativecommons.org/licenses/by/4.0 |
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