Key attributes underpinning different markup decision between public and private projects : a China study

Ye, Kunhui, Shen, Liyin, Xia, Bo, & Li, Bingheng (2013) Key attributes underpinning different markup decision between public and private projects : a China study. International Journal of Project Management, 32(3), pp. 461-472.

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In the construction industry, contractors have to improve the efficiency of markup decision-making to survive from fierce business competition. The effect of client type on markup decision has been aware in previous studies and contractors are advocated to take account of decision factors properly when they are confronted with different types of projects. Nevertheless, the rationales behind the inclusion of different factors in markup decision-making for different projects sustain unknown. In this study, fifty-three factors were identified after extensive literature review and interviews with professionals. The identified factors were afterwards grouped under the headings of nine attributes and compiled in a questionnaire for survey in China. Using the Hotelling’s T-square test, it is found that three attributes (i.e., project characteristic, client characteristic, and macro condition) can explain the effect of client type on contractors’ markup decision. The research findings provide useful insights into the cognition of bid pricing as well as the improvement of bidding efficiency. While the research works were situated in China, contractors in other countries could benefit from the research findings in a similar vein.

Impact and interest:

6 citations in Scopus
6 citations in Web of Science®
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ID Code: 60642
Item Type: Journal Article
Refereed: Yes
Keywords: Bidding, markup decision, decision factors, competitiveness, China
DOI: 10.1016/j.ijproman.2013.06.001
ISSN: 0263-7863
Subjects: Australian and New Zealand Standard Research Classification > BUILT ENVIRONMENT AND DESIGN (120000)
Divisions: Current > Schools > School of Civil Engineering & Built Environment
Current > QUT Faculties and Divisions > Science & Engineering Faculty
Copyright Owner: Copyright 2014 Please consult the authors.
Deposited On: 14 Jun 2013 01:41
Last Modified: 08 May 2017 14:20

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