The ethics of item pricing

A Stramarcos; David Cattell

The ethics of item pricing

A Stramarcos, David Cattell

Centre for Comparative Construction Research

Research output: Chapter in Book/Report/Conference proceeding › Conference contribution › Research › peer-review

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Abstract

Unbalanced bidding describes the process of contractors deliberately applying different mark-ups to individual items of work within a project. This practice has been shown to have the potential of yielding significant benefits to the contractor, including improved cashflow, higher compensation for escalation, and higher valuations for anticipated variations. A previous study on a hypothetical project indicated an improvement in profit in the order of 150% compared to balanced item prices. Research has indicated that unbalanced bidding is a widespread practice and yet many researchers have argued that it is unethical. This paper investigates the merits of these claims.

Original language	English
Title of host publication	38th Australian University Building Educators Association Conference
Place of Publication	Auckland
Publisher	University of Auckland
Pages	1-14
Number of pages	14
Publication status	Published - 2013
Event	Australian University Building Educators Association Conference - Auckland, Auckland, New Zealand Duration: 20 Nov 2013 → 22 Nov 2013 Conference number: 38th

Conference

Conference	Australian University Building Educators Association Conference
Abbreviated title	AUBEA Conference
Country/Territory	New Zealand
City	Auckland
Period	20/11/13 → 22/11/13

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The ethics of item pricingAccepted author manuscript, 6.15 MB

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title = "The ethics of item pricing",

abstract = "Unbalanced bidding describes the process of contractors deliberately applying different mark-ups to individual items of work within a project. This practice has been shown to have the potential of yielding significant benefits to the contractor, including improved cashflow, higher compensation for escalation, and higher valuations for anticipated variations. A previous study on a hypothetical project indicated an improvement in profit in the order of 150% compared to balanced item prices. Research has indicated that unbalanced bidding is a widespread practice and yet many researchers have argued that it is unethical. This paper investigates the merits of these claims.",

author = "A Stramarcos and David Cattell",

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AU - Cattell, David

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N2 - Unbalanced bidding describes the process of contractors deliberately applying different mark-ups to individual items of work within a project. This practice has been shown to have the potential of yielding significant benefits to the contractor, including improved cashflow, higher compensation for escalation, and higher valuations for anticipated variations. A previous study on a hypothetical project indicated an improvement in profit in the order of 150% compared to balanced item prices. Research has indicated that unbalanced bidding is a widespread practice and yet many researchers have argued that it is unethical. This paper investigates the merits of these claims.

AB - Unbalanced bidding describes the process of contractors deliberately applying different mark-ups to individual items of work within a project. This practice has been shown to have the potential of yielding significant benefits to the contractor, including improved cashflow, higher compensation for escalation, and higher valuations for anticipated variations. A previous study on a hypothetical project indicated an improvement in profit in the order of 150% compared to balanced item prices. Research has indicated that unbalanced bidding is a widespread practice and yet many researchers have argued that it is unethical. This paper investigates the merits of these claims.

M3 - Conference contribution

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EP - 14

BT - 38th Australian University Building Educators Association Conference

PB - University of Auckland

CY - Auckland

T2 - Australian University Building Educators Association Conference

Y2 - 20 November 2013 through 22 November 2013

ER -

The ethics of item pricing

Abstract

Conference

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