IDEAS home Printed from https://ideas.repec.org/a/taf/conmgt/v20y2002i7p601-610.html
   My bibliography  Save this article

The factors influencing bid mark-up decisions of large- and medium-size contractors in Singapore

Author

Listed:
  • Mohammed Fadhil Dulaimi
  • Hon Guo Shan

Abstract

The construction industry in Singapore is dominated by a competitive business environment that is being driven by a lowest cost mentality. The pressure on contractors' profit margins has further increased after a prolonged recession in this sector, which has seen construction demand and output shrinking significantly. This paper examines the factors that contractors perceive to be important when they are considering the size of their bid mark-up. The research hypothesis is that contractor size would have a significant bearing on the factors that would influence the bid mark-up decision. Forty factors were identified and a survey was conducted. The results showed that contractor size has a significant impact on their attitude towards bid mark-up decision-making. The analysis also showed that when deciding the size of a bid mark-up large contractors tend to be more concerned with the nature of the construction work while medium-size contractors are more concerned about the state of their own companies finance.

Suggested Citation

  • Mohammed Fadhil Dulaimi & Hon Guo Shan, 2002. "The factors influencing bid mark-up decisions of large- and medium-size contractors in Singapore," Construction Management and Economics, Taylor & Francis Journals, vol. 20(7), pages 601-610.
    • Handle: RePEc:taf:conmgt:v:20:y:2002:i:7:p:601-610
    DOI: 10.1080/01446190210159890
    as

    Download full text from publisher

    File URL: http://www.tandfonline.com/doi/abs/10.1080/01446190210159890
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/01446190210159890?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Heng Li & Peter Love, 1999. "Combining rule-based expert systems and artificial neural networks for mark-up estimation," Construction Management and Economics, Taylor & Francis Journals, vol. 17(2), pages 169-176.
    2. Derek Drew & Martin Skitmore, 1997. "The effect of contract type and size on competitiveness in bidding," Construction Management and Economics, Taylor & Francis Journals, vol. 15(5), pages 469-489.
    3. Goran Runeson & Martin Skitmore, 1999. "Tendering theory revisited," Construction Management and Economics, Taylor & Francis Journals, vol. 17(3), pages 285-296.
    4. Tianji Xu & Robert L.K. Tiong, 2001. "Risk assessment on contractors' pricing strategies," Construction Management and Economics, Taylor & Francis Journals, vol. 19(1), pages 77-84, January.
    5. Lawrence Friedman, 1956. "A Competitive-Bidding Strategy," Operations Research, INFORMS, vol. 4(1), pages 104-112, February.
    6. Akintola Akintoye, 2000. "Analysis of factors influencing project cost estimating practice," Construction Management and Economics, Taylor & Francis Journals, vol. 18(1), pages 77-89.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Omar Binshakir & Lulwa AlGhanim & Afreen Fathaq & Alsharif Mohamed AlHarith & Salma Ahmed & Sameh El-Sayegh, 2023. "Factors Affecting the Bidding Decision in Sustainable Construction," Sustainability, MDPI, vol. 15(19), pages 1-15, September.
    2. J P Pastor-Ferrando & P Aragonés-Beltrán & A Hospitaler-Pérez & M García-Melón, 2010. "An ANP- and AHP-based approach for weighting criteria in public works bidding," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 61(6), pages 905-916, June.
    3. Joe Wong & Eddie Hui, 2006. "Construction project risks: further considerations for constructors' pricing in Hong Kong," Construction Management and Economics, Taylor & Francis Journals, vol. 24(4), pages 425-438.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Qiao, Yu & Labi, Samuel & Fricker, Jon D., 2021. "Does highway project bundling policy affect bidding competition? Insights from a mixed ordinal logistic model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 145(C), pages 228-242.
    2. Martin Skitmore & Goran Runeson & Xinling Chang, 2006. "Construction price formation: full-cost pricing or neoclassical microeconomic theory?," Construction Management and Economics, Taylor & Francis Journals, vol. 24(7), pages 773-783.
    3. Hyeongjun Mun & Jaewook Jeong & Jaemin Jeong, 2023. "Improving the Model for Estimating the Number of Construction Workers for Apartment Construction," Sustainability, MDPI, vol. 15(9), pages 1-17, April.
    4. Ronald M. Harstad, 2007. "Does a Seller Really Want Another Bidder?," Working Papers 0711, Department of Economics, University of Missouri.
    5. Wei Wang & Shoujian Zhang & Yikun Su & Xinyang Deng, 2019. "An Empirical Analysis of the Factors Affecting the Adoption and Diffusion of GBTS in the Construction Market," Sustainability, MDPI, vol. 11(6), pages 1-24, March.
    6. Hai Pham & Soo-Yong Kim & Truong-Van Luu, 2020. "Managerial perceptions on barriers to sustainable construction in developing countries: Vietnam case," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 22(4), pages 2979-3003, April.
    7. Yi, Liqi & Li, Tao & Zhang, Ting, 2021. "Optimal investment selection of regional integrated energy system under multiple strategic objectives portfolio," Energy, Elsevier, vol. 218(C).
    8. Ballesteros-Pérez, Pablo & del Campo-Hitschfeld, Maria Luisa & Mora-Melià, Daniel & Domínguez, David, 2015. "Modeling bidding competitiveness and position performance in multi-attribute construction auctions," Operations Research Perspectives, Elsevier, vol. 2(C), pages 24-35.
    9. Esa, Mohd Reza & Halog, Anthony & Rigamonti, Lucia, 2017. "Strategies for minimizing construction and demolition wastes in Malaysia," Resources, Conservation & Recycling, Elsevier, vol. 120(C), pages 219-229.
    10. Swider, Derk J. & Weber, Christoph, 2007. "Bidding under price uncertainty in multi-unit pay-as-bid procurement auctions for power systems reserve," European Journal of Operational Research, Elsevier, vol. 181(3), pages 1297-1308, September.
    11. Alan Mehlenbacher, 2007. "Multiagent System Platform for Auction Simulations," Department Discussion Papers 0706, Department of Economics, University of Victoria.
    12. Nyoni, Thabani, 2019. "Cost overrun factors in construction industry: a case of Zimbabwe," MPRA Paper 96788, University Library of Munich, Germany.
    13. João Adelino Ribeiro & Paulo Jorge Pereira & Elisio Moreira Brandão, 2020. "A real options approach to optimal bidding in construction projects considering volume uncertainty," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(4), pages 631-640, June.
    14. Skitmore, Martin, 2002. "Identifying non-competitive bids in construction contract auctions," Omega, Elsevier, vol. 30(6), pages 443-449, December.
    15. C. Y. Yiu & C. S. Tam, 2006. "Rational under-pricing in bidding strategy: a real options model," Construction Management and Economics, Taylor & Francis Journals, vol. 24(5), pages 475-484.
    16. Fanzeres, Bruno & Ahmed, Shabbir & Street, Alexandre, 2019. "Robust strategic bidding in auction-based markets," European Journal of Operational Research, Elsevier, vol. 272(3), pages 1158-1172.
    17. Ting Wang & Emmanuel Kingsford Owusu & Qinghua He & Zidan Tian & Dong Wu, 2022. "Empirical Assessments of the Determinants of Construction Megaprojects’ Success: Evidence from China," Sustainability, MDPI, vol. 14(22), pages 1-20, November.
    18. Yuichi Takano & Nobuaki Ishii & Masaaki Muraki, 2017. "Multi-period resource allocation for estimating project costs in competitive bidding," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 25(2), pages 303-323, June.
    19. Vukina, Tomislav & Zheng, Xiaoyong & Marra, Michele & Levy, Armando, 2008. "Do farmers value the environment? Evidence from a conservation reserve program auction," International Journal of Industrial Organization, Elsevier, vol. 26(6), pages 1323-1332, November.
    20. Cova, Bernard & Mazet, Florence & Salle, Robert, 1996. "Milieu as a pertinent unit of analysis in project marketing," International Business Review, Elsevier, vol. 5(6), pages 647-664, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:conmgt:v:20:y:2002:i:7:p:601-610. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RCME20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.