Construction item pricing: For more profit and less risk
Date of this Version
The pricing of the constituent component items of a project has a substantial infl uence on the profi tability of a project for a building contractor. Despite this, there has been relatively little research done on this subject since ‘unbalanced bidding’ (the manipulation of component item prices) was identifi ed as a viable strategy 50 years ago. The science now confi rms that there are considerable benefi ts for building and engineering contractors if they adopt a well-disciplined and well-informed approach to the pricing of their work. This book outlines a new approach, called CUP Theory (Construction Unit Pricing Theory), which is intended to lay a new foundation for a scientifi cally based approach to item pricing. It shows that contractors could increase their profi t by as much as 150% without much change to their risk. The author has included a CD containing the program by which pricing can be calculated, and has presented it so that it can be further worked on by those researching the field.
This document has been peer reviewed.