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Marketing and Production Decisions of Speculative Builders and Contractors

In: The Economics of the Modern Construction Firm

Author

Listed:
  • Stephen L. Gruneberg

    (University College London)

  • Graham J. Ive

    (University College London)

Abstract

This chapter discusses the marketing, output and pricing decisions of speculative builders and contractors. We look at the marketing and production considerations which speculative builders need to take into account in planning their production. These include the relationship between their fixed cost purchases of land and their variable costs of building using specialist contractors. We also look at the marketing and production considerations of contractors, who are involved in tendering procedures, and note how contracts are let sequentially throughout the year. This enables contractors to adjust their tender prices in response to uncertainty and evolving conditions.

Suggested Citation

  • Stephen L. Gruneberg & Graham J. Ive, 2000. "Marketing and Production Decisions of Speculative Builders and Contractors," Palgrave Macmillan Books, in: The Economics of the Modern Construction Firm, chapter 10, pages 227-248, Palgrave Macmillan.
  • Handle: RePEc:pal:palchp:978-0-230-51043-2_10
    DOI: 10.1057/9780230510432_10
    as

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