A Study of Pricing Strategy Modelsin Construction Project

碩士 === 國立臺灣海洋大學 === 河海工程學系 === 102 === Least lump-sum method is a commonly used tender awarding method for public construction work. The characteristic of "lump-sum" contract is that the items and quantities on the construction price list are only for reference for the contractor. If any m...

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Bibliographic Details
Main Authors: Chen, Chun-Hung, 陳俊宏
Other Authors: Jang, Jing-Jong
Format: Others
Language:zh-TW
Published: 2014
Online Access:http://ndltd.ncl.edu.tw/handle/04625076777981378220
Description
Summary:碩士 === 國立臺灣海洋大學 === 河海工程學系 === 102 === Least lump-sum method is a commonly used tender awarding method for public construction work. The characteristic of "lump-sum" contract is that the items and quantities on the construction price list are only for reference for the contractor. If any mistakes in the list of items or quantities are found, the contractor should term the unit prices of each item accordingly and the adjustment will be reflected in the total price. Usually, the unit prices of the item should reflect the influences of the short term period and of many uncertainties such as loss of items, or the price inflaction. However, in order to award the contract, the contractor often depress the unit prices of the items to pursue the profit. This is also considered as the main reason of the poor quality of public constructions. In the ealier period, the pricing strategy of construct project in the market is usually determined by following the same procedure of the public construction tender. As a result, the construction usually can not be completed as expected. As we said, "You get what you pay for". Thus, the true value of the construction project should not only depend on the least price. Recently, the pricing strategy of construction project has been changed much. Also, the final determination depends on contractor's proposal and presentation instead of just on the least price. Without under the premise of least price, many options for the pricing strategy are available. This study is organized by three parts. First, the previous studies and the related discussions are comprehensively illustrated. Then, the existing cases are discussed and analyzed distinctly. Finally, the considerations of A and B when making the pricing strategies are concluded. In this research, we expect to provide an evaluated reference for A and B during the process of reaching an agreement. Our analysis discovered that every pricing strategy has its pros and cons, and A should choose the best one under different situations based on our results to complete the construction project with high quality within the expected time period.