RETRACTED: Risk Pricing in Construction Tenders - How, Who, What
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Abstract
This article has been retracted. Retraction notice: https://doi.org/10.5130/AJCEB.v7i2.10170
Original abstract:
Construction projects are most commonly procured in Australia by means of a traditional design-tender-build model, whereby design is largely completed then contractors submit tenders in a competitive environment. Construction contractors must consider risks within their tenders. This paper reports the research findings into pricing for risk in competitive tenders by construction contractors. The research is based on structured interviews with 10 contracting personnel; supplemented by 23 responses of construction personnel from an online survey. Two common methods to price for risk are a trade-by-trade basis or an overall percentage or lump sum addition to the base estimate. Experience and intuition plays a significant role in pricing for risk in tenders and the number and type of people involved varies with project size, with greater involvement as project size increases. The most significant risks priced in tenders were: availability of resources; design or documentation errors; incomplete design; buildability issues; and inclement weather. The most significant project factors considered by contractors when pricing for risk in tenders are: value of liquidated damages; type of contract/procurement; completeness of documentation; project complexity; and. current workload. These risks and project factors are primarily those over which the contractor has limited or no control.
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