Perera, B A K S; Wijewickrama, M K C S; Ranaweera, W R S C and Gamage, I S W (2021) Significant factors influencing the bid mark-up decision of infrastructure projects in Sri Lanka. International Journal of Construction Management, 21(8), pp. 769-783. ISSN 1562-3599
Abstract
Tender estimates play a vital role in achieving bid successes. A bid price which has an optimum mark-up is governed by many factors. The research aims to identify the significant factors influencing the bid mark-up decision of infrastructure projects in Sri Lanka. Using a literature review, semi-structured interviews and a questionnaire survey, the study identifies nine significant factors influencing the mark-up decision of infrastructure projects. The identified significant factors are 'estimated direct cost', 'competitiveness of other bids', 'type of work', 'project duration', 'the ability to predict pre-tender estimate', 'project location', 'reliability of the company estimate', 'number of bidders' and 'need for work', respectively. The study also reveals potential relationships between the identified significant factors and bid mark-up based on case studies. Amongst, 'reliability of the company estimate', 'number of bidders' and 'type of work' have shown positive relationships with mark-up. The contents should be of interest to bidders and researchers in construction.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | bid mark-up; competitive bidding; contractor; infrastructure projects; Sri Lanka |
| Index terms: | infrastructure project, duration, estimate, bidder, competitiveness, Sri Lanka, pre-tender estimate, direct cost, case study, questionnaire, literature review, survey, interview, mark-up, number of bidders, competitive bidding |
| Subjects: | data collection methods, financial and cost management, data analysis and analytics, bidding, Geography, tendering, economics, price determination, infrastructure and transport systems, project controls, market analysis |
| Topics: | Time Control, Cost Management, Geographical Context, Research Practice, Engineering Principles, Procurement |
| Descriptive scope: | 4 PCEA |
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