Construction project risks: Further considerations for constructors' pricing in Hong Kong

Joe T Y Wong, Chi Man Hui

Research output: Journal article publicationJournal articleAcademic researchpeer-review

15 Citations (Scopus)

Abstract

Construction project risks affect contractors' tender price. A host of factors influencing tender prices were identified and the importance of these factors evaluated by making use of the data collected in a postal questionnaire survey conducted to the 'Buildings' contractors in Hong Kong. Out of 60 factors identified, the availability of required cash, uncertainty in costs estimates, urgent need for work, past experience in similar projects and contract size are considered most important. The need for work and the amount of experience are similar to those factors affecting bidding decisions of top UK contractors. The findings suggest that in the upward adjustment of tender prices, the large-size contractors are more concerned with the uncertainty in costs estimates while the medium- and small-size contractors care more about no past experience. In the downward adjustment of prices, the large size of the contract is the main factor affecting the pricing of the large- and medium-size contractors while the urgent need for work is the main drive for the small-size ones. There are significant differences between the contractors' perceptions of the importance of the risk factors. This is consistent with differing attitudes towards bid mark-up decisions of the large- and medium-size contractors in Singapore.
Original languageEnglish
Pages (from-to)425-438
Number of pages14
JournalConstruction Management and Economics
Volume24
Issue number4
DOIs
Publication statusPublished - 1 Apr 2006

Keywords

  • Bidding
  • Construction project risks
  • Hong Kong
  • Importance indices
  • Mark-up

ASJC Scopus subject areas

  • Building and Construction
  • Management Information Systems
  • Industrial and Manufacturing Engineering

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