Effective Bid Pricing for Unit Price Contracts

Burnett, J.; Finch, J. Howard

doi:10.1080/00137919408903131

Cited by 2 publications

(3 citation statements)

References 8 publications

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“…Mark-up or contractors' fee is an important part of any discussion of construction contract bidding as discussed in Curtis and Maines [68,69] and Fuerst [92,93]. The mark up is often considered to be the principal strategic component ofthe construction bid, and a considerable amount of work has been done to calculate the theoretical optimum mark-up in order to maximize the expected profit of any given bid [21,35,91,132,145,153,159,181,201,218]. These works consider several factors such as number of opposing bidders and variance in the value of the good sought.…”

Section: Bidder's Mark-up or Feementioning

confidence: 99%

“…The next step in this project was to focus on defining the input and output metrics in a way that could be obtained, would make sense within the context, and could easily be In addition to the cost, profit, schedule, and quality metrics, it was important to obtain other information about the project, such as the type ofproject and its size in square feet. 35 For the most part, it was felt that these data would be less sensitive than the financial (in particular Profit) data requested, with the possible exception of "Claims" because no business likes to be thought of as "Claim Oriented." But, that data is public information on these Public Projects, and not entirely the fault of the Contractor.…”

Section: Output Metric Definitionmentioning

confidence: 99%

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An Evaluation of Public Construction Contracting Methods for the Public Building Sector in Oregon using Data Envelopment Analysis

Williams¹,

Herman²

2000

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When applied to parking structure projects CM/GC PDS results in projects that outperform DBB PDS projects. H A3. 7 : When applied to building remodel projects CM/GC PDS results in projects that outperform DBB PDS projects. H A3. a : When applied to school projects CM/GC PDS results in projects that outperform DBB PDS projects. HA3.9: When applied to sports facility projects CM/GC PDS results in projects that outperform DBB PDS projects. H03: CM/GC PDS does not result in projects that outperform DBB PDS on similar types of projects. (Note the sub-hypotheses of the null hypothesis H03 are omitted for brevity.) 3 1.2 Research Design and Data Collection How is "outperformed" determined? Or, more generally, how is performance determined, what measures are used, and where does the required information come from? Clearly, performance can be defined in a number ofways and use any number ofmetrics or measures. Sanvido [182] Chua [47, 48] and others have laid some of the groundwork by providing critical project success factors, while Knuf, [123] Harma, [104] Russell, [177] and others have contributed benchmarking metrics. These can be thought of as inputs and outputs to a construction project management model. However, the number of metrics and measures provided in the literature is quite large, and therefore only the most important measures must be separated out from those oflesser importance for this analysis. The process undertaken in this research started with assembling a panel of construction industry experts (referred to hereafter as the Expert Panel), which is detailed in Chapter 3. Metrics were elicited from the Expert Panel consistent with methods described by Ayyub [13], Chua [48] and Kocaoglu [124]. Data was obtained on a 407 public projects constructed in Oregon from 1986 to 2002 (the "Oregon database"). One hundred and ninety-two of the projects either did not meet the criteria for the analysis or had significant missing data, which made them unusable in the model. Two hundred and fifteen projects were used in the final DEA model and analysis. These were nearly equally distributed between competitive lunlP sum Design-Bid-Build (DBB) and negotiated Construction Manager/General Contractor

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Section: Bidder's Mark-up or Feementioning

confidence: 99%

Section: Output Metric Definitionmentioning

confidence: 99%

An Evaluation of Public Construction Contracting Methods for the Public Building Sector in Oregon using Data Envelopment Analysis

Williams¹,

Herman²

2000

View full text Add to dashboard Cite

show abstract

“…Candidate and Capital budgeting and the procurement of capital facilities are interdependent aspects of the same function --the provision of infrastructure on behalf of the public. For example, a capital budget may be inadequate if delays in the procurement process cause the costs to far exceed those projected in initial calculations; indeed, the contractor's bid price is highly dependent upon the delivery schedule of the contract (Burnett & Finch, 1994). Likewise, the procurement process may be unable to accommodate a project in either a timely manner or within budget if the capital budget and related plans are not adjusted for requirements related to procurement (competitive bidding, minority inclusion, and the like).…”

Section: Introductionmentioning

confidence: 99%

Contracting for 21st century infrastructure

Bowden

Klay

1996

Journal of Public Budgeting, Accounting &Amp; Financial Management

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Contracting practice and theory is based upon a legal framework which impedes the attainment of value, defined as quality and cost containment. The manufacture of complex, highly technical infrastructure is especially impeded. Constraints of the legal framework are being overcome through innovative infrastructure contracting practices which maintain competitiveness and accountability, and simultaneously foster collaboration among the participants. Some of these innovations are discussed along with five projects which utilized one or more of them. A management framework for contracting based on a competitive/collaborative model is offered which emphasizes value, cooperation, long-term relationships, accountability and stewardship.

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Effective Bid Pricing for Unit Price Contracts

Cited by 2 publications

References 8 publications

An Evaluation of Public Construction Contracting Methods for the Public Building Sector in Oregon using Data Envelopment Analysis

An Evaluation of Public Construction Contracting Methods for the Public Building Sector in Oregon using Data Envelopment Analysis

Contracting for 21st century infrastructure

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