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Critical factors influencing bid mark-up decision in public street project: a review / Huzairi Zainul Azlan, Shamsida Saidan Khaderi and Anis Sazira Bakri

Deciding a bid price with an appropriate mark-up added to the estimated project cost is essential for the contractors' business survival. However, the competitive environment had influenced contractors to offer the lowest bid price, leading to the submission of unrealistically low prices to win...

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Main Authors: Zainul Azlan, Huzairi, Khaderi, Shamsida Saidan, Bakri, Anis Sazira
Format: Article
Language:English
Published: UiTM Press 2024
Subjects:
Infrastructure (Economics). Capital. Capital productivity
Construction industry
Online Access:https://ir.uitm.edu.my/id/eprint/88913/1/88913.pdf
https://ir.uitm.edu.my/id/eprint/88913/
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spelling my.uitm.ir.889132024-01-03T08:06:37Z https://ir.uitm.edu.my/id/eprint/88913/ Critical factors influencing bid mark-up decision in public street project: a review / Huzairi Zainul Azlan, Shamsida Saidan Khaderi and Anis Sazira Bakri bej Zainul Azlan, Huzairi Khaderi, Shamsida Saidan Bakri, Anis Sazira Infrastructure (Economics). Capital. Capital productivity Construction industry Deciding a bid price with an appropriate mark-up added to the estimated project cost is essential for the contractors' business survival. However, the competitive environment had influenced contractors to offer the lowest bid price, leading to the submission of unrealistically low prices to win bids. This practice can impact disputes and adversarial relationships between parties during construction and provide an additional risk to the project delay, cost overrun, quality compromise and failure to complete the project. Therefore, this paper aims to provide an overview of the literature on critical factors influencing bid mark-up decisions in public street projects. The objectives are to identify methods and tools, including the critical factors in determining the contractors' bid mark-up decision. The approach is based on analysing pertinent publications on the theme. The top five (5) ranked factors influencing contractors' decision on bid mark-up size can be found in the literature: the number of bidders, the competitiveness of other bidders, relationship and experience with clients, experience on similar projects and project size. Besides that, the determination of mark-up size is based on experience, intuition, past bidding results, past bidding patterns of competitors, the client's tender estimate, the client's record, and financial ability. UiTM Press 2024-01 Article PeerReviewed text en https://ir.uitm.edu.my/id/eprint/88913/1/88913.pdf Critical factors influencing bid mark-up decision in public street project: a review / Huzairi Zainul Azlan, Shamsida Saidan Khaderi and Anis Sazira Bakri. (2024) Built Environment Journal <https://ir.uitm.edu.my/view/publication/Built_Environment_Journal/>, 21 (1): 3. pp. 30-44. ISSN 2637-0395
institution Universiti Teknologi Mara
building Tun Abdul Razak Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Teknologi Mara
content_source UiTM Institutional Repository
url_provider http://ir.uitm.edu.my/
language English
topic Infrastructure (Economics). Capital. Capital productivity
Construction industry
spellingShingle Infrastructure (Economics). Capital. Capital productivity
Construction industry
Zainul Azlan, Huzairi
Khaderi, Shamsida Saidan
Bakri, Anis Sazira
Critical factors influencing bid mark-up decision in public street project: a review / Huzairi Zainul Azlan, Shamsida Saidan Khaderi and Anis Sazira Bakri
description Deciding a bid price with an appropriate mark-up added to the estimated project cost is essential for the contractors' business survival. However, the competitive environment had influenced contractors to offer the lowest bid price, leading to the submission of unrealistically low prices to win bids. This practice can impact disputes and adversarial relationships between parties during construction and provide an additional risk to the project delay, cost overrun, quality compromise and failure to complete the project. Therefore, this paper aims to provide an overview of the literature on critical factors influencing bid mark-up decisions in public street projects. The objectives are to identify methods and tools, including the critical factors in determining the contractors' bid mark-up decision. The approach is based on analysing pertinent publications on the theme. The top five (5) ranked factors influencing contractors' decision on bid mark-up size can be found in the literature: the number of bidders, the competitiveness of other bidders, relationship and experience with clients, experience on similar projects and project size. Besides that, the determination of mark-up size is based on experience, intuition, past bidding results, past bidding patterns of competitors, the client's tender estimate, the client's record, and financial ability.
format Article
author Zainul Azlan, Huzairi
Khaderi, Shamsida Saidan
Bakri, Anis Sazira
author_facet Zainul Azlan, Huzairi
Khaderi, Shamsida Saidan
Bakri, Anis Sazira
author_sort Zainul Azlan, Huzairi
title Critical factors influencing bid mark-up decision in public street project: a review / Huzairi Zainul Azlan, Shamsida Saidan Khaderi and Anis Sazira Bakri
title_short Critical factors influencing bid mark-up decision in public street project: a review / Huzairi Zainul Azlan, Shamsida Saidan Khaderi and Anis Sazira Bakri
title_full Critical factors influencing bid mark-up decision in public street project: a review / Huzairi Zainul Azlan, Shamsida Saidan Khaderi and Anis Sazira Bakri
title_fullStr Critical factors influencing bid mark-up decision in public street project: a review / Huzairi Zainul Azlan, Shamsida Saidan Khaderi and Anis Sazira Bakri
title_full_unstemmed Critical factors influencing bid mark-up decision in public street project: a review / Huzairi Zainul Azlan, Shamsida Saidan Khaderi and Anis Sazira Bakri
title_sort critical factors influencing bid mark-up decision in public street project: a review / huzairi zainul azlan, shamsida saidan khaderi and anis sazira bakri
publisher UiTM Press
publishDate 2024
url https://ir.uitm.edu.my/id/eprint/88913/1/88913.pdf
https://ir.uitm.edu.my/id/eprint/88913/
_version_ 1787139647527190528
score 13.211869

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