Construction item pricing: For more profit and less risk

David Cattell

Research output: Book/ReportBookResearchpeer-review

Abstract

The pricing of the constituent component items of a project has a substantial influence on the profitability 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 identified as a viable strategy 50 years ago. The science now confirms that there are considerable benefits 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 scientifically based approach to item pricing. It shows that contractors could increase their profit 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.
Original languageEnglish
Place of PublicationClaremont, South Africa
PublisherUCT Press
Number of pages150
ISBN (Print)1919895698, 9781919895697, 1920516522, 9781920516529
Publication statusPublished - 2012

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Cattell, D. (2012). Construction item pricing: For more profit and less risk. Claremont, South Africa: UCT Press.