Shash, A A and Abdul-Hadi, N H (1992) Factors affecting a contractor's mark-up size decision in Saudi Arabia. Construction Management and Economics, 10(5), pp. 415-429. ISSN 01446193
Abstract
Deciding upon the right mark-up to add to an estimate is not an easy task for a contractor. The mark-up must be small enough to ensure a good chance of winning the contract, yet big enough to realize a reasonable profit. The determination of the proper mark-up size entails the evaluation of numerous factors. This study presents 37 factors, with their relative importance to contractors operating in Saudi Arabia, underlying the mark-up size decision. The size of contract and availability of required cash, not competition, labour availability and profitability, are the most important factors that affect mark-up size decision.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | bidding; construction; mark-up; Saudi Arabia |
| Index terms: | Saudi Arabia, estimate, profitability, bidding, relative importance, profit, competition, mark-up |
| Subjects: | price determination, market analysis, Geography, risk assessment, financial and cost management, bidding, economic analysis |
| Topics: | Risk Management, Research Practice, Cost Management, Business Strategy, Geographical Context, Procurement |
| Descriptive scope: | 2 PC |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here