Chances and risks of combined pricing

Research output: Chapter in Book/Report/Conference proceedingConference contributionResearchpeer-review

Abstract

Appropriate costing creates a plausible, reliable basis for determining the bid price. One of the key requirements that applicable laws, standards, and guidelines stipulate for (structural) specifications is that works should be specified clearly, completely and objectively so as to ensure bid comparability. Furthermore, cost estimates should be possible for the specified works (excluding non-quantifiable risks). The specifying party usually requires combined pricing because works related to various structural components, construction trades, subsoil types, rebar diameters etc. that necessitate a variety of types and combinations of production factors are merged into a single item. Combined pricing occurs whenever a unit price is to be derived from different cost estimates with respect to the utilization of production factors. This means that bidders intending to develop an activity-based costing model would have to know the type of work or service, the underlying conditions for performing the work, and the associated timeframe (i.e. project start, binding milestones, project end). This paper investigates if combined pricing items meet these requirements whilst putting a particular focus on the relevance of combined pricing to construction management and economics, including construction expert opinions on the chances and risks of this approach. For this purpose, this paper primarily deals with reinforcing works.

Original languageEnglish
Title of host publicationISEC 2019 - 10th International Structural Engineering and Construction Conference
EditorsDidem Ozevin, Hossein Ataei, Asli Pelin Gurgun, Mehdi Modares, Siamak Yazdani, Amarjit Singh
PublisherISEC Press
ISBN (Electronic)9780996043762
Publication statusPublished - 1 Jan 2019
Event10th International Structural Engineering and Construction Conference, ISEC 2019 - Chicago, United States
Duration: 20 May 201925 May 2019

Conference

Conference10th International Structural Engineering and Construction Conference, ISEC 2019
CountryUnited States
CityChicago
Period20/05/1925/05/19

Fingerprint

Costs
Specifications
Economics

Keywords

  • Building specification
  • Expert survey
  • Management of chances and risks
  • Reinforcement ratio
  • Reinforcing works

ASJC Scopus subject areas

  • Civil and Structural Engineering
  • Building and Construction

Cite this

Kummer, M., & Hofstadler, C. (2019). Chances and risks of combined pricing. In D. Ozevin, H. Ataei, A. P. Gurgun, M. Modares, S. Yazdani, & A. Singh (Eds.), ISEC 2019 - 10th International Structural Engineering and Construction Conference ISEC Press.

Chances and risks of combined pricing. / Kummer, Markus; Hofstadler, Christian.

ISEC 2019 - 10th International Structural Engineering and Construction Conference. ed. / Didem Ozevin; Hossein Ataei; Asli Pelin Gurgun; Mehdi Modares; Siamak Yazdani; Amarjit Singh. ISEC Press, 2019.

Research output: Chapter in Book/Report/Conference proceedingConference contributionResearchpeer-review

Kummer, M & Hofstadler, C 2019, Chances and risks of combined pricing. in D Ozevin, H Ataei, AP Gurgun, M Modares, S Yazdani & A Singh (eds), ISEC 2019 - 10th International Structural Engineering and Construction Conference. ISEC Press, 10th International Structural Engineering and Construction Conference, ISEC 2019, Chicago, United States, 20/05/19.
Kummer M, Hofstadler C. Chances and risks of combined pricing. In Ozevin D, Ataei H, Gurgun AP, Modares M, Yazdani S, Singh A, editors, ISEC 2019 - 10th International Structural Engineering and Construction Conference. ISEC Press. 2019
Kummer, Markus ; Hofstadler, Christian. / Chances and risks of combined pricing. ISEC 2019 - 10th International Structural Engineering and Construction Conference. editor / Didem Ozevin ; Hossein Ataei ; Asli Pelin Gurgun ; Mehdi Modares ; Siamak Yazdani ; Amarjit Singh. ISEC Press, 2019.
@inproceedings{256342f7d1aa495c8215d337ec019ea5,
title = "Chances and risks of combined pricing",
abstract = "Appropriate costing creates a plausible, reliable basis for determining the bid price. One of the key requirements that applicable laws, standards, and guidelines stipulate for (structural) specifications is that works should be specified clearly, completely and objectively so as to ensure bid comparability. Furthermore, cost estimates should be possible for the specified works (excluding non-quantifiable risks). The specifying party usually requires combined pricing because works related to various structural components, construction trades, subsoil types, rebar diameters etc. that necessitate a variety of types and combinations of production factors are merged into a single item. Combined pricing occurs whenever a unit price is to be derived from different cost estimates with respect to the utilization of production factors. This means that bidders intending to develop an activity-based costing model would have to know the type of work or service, the underlying conditions for performing the work, and the associated timeframe (i.e. project start, binding milestones, project end). This paper investigates if combined pricing items meet these requirements whilst putting a particular focus on the relevance of combined pricing to construction management and economics, including construction expert opinions on the chances and risks of this approach. For this purpose, this paper primarily deals with reinforcing works.",
keywords = "Building specification, Expert survey, Management of chances and risks, Reinforcement ratio, Reinforcing works",
author = "Markus Kummer and Christian Hofstadler",
year = "2019",
month = "1",
day = "1",
language = "English",
editor = "Didem Ozevin and Hossein Ataei and Gurgun, {Asli Pelin} and Mehdi Modares and Siamak Yazdani and Amarjit Singh",
booktitle = "ISEC 2019 - 10th International Structural Engineering and Construction Conference",
publisher = "ISEC Press",

}

TY - GEN

T1 - Chances and risks of combined pricing

AU - Kummer, Markus

AU - Hofstadler, Christian

PY - 2019/1/1

Y1 - 2019/1/1

N2 - Appropriate costing creates a plausible, reliable basis for determining the bid price. One of the key requirements that applicable laws, standards, and guidelines stipulate for (structural) specifications is that works should be specified clearly, completely and objectively so as to ensure bid comparability. Furthermore, cost estimates should be possible for the specified works (excluding non-quantifiable risks). The specifying party usually requires combined pricing because works related to various structural components, construction trades, subsoil types, rebar diameters etc. that necessitate a variety of types and combinations of production factors are merged into a single item. Combined pricing occurs whenever a unit price is to be derived from different cost estimates with respect to the utilization of production factors. This means that bidders intending to develop an activity-based costing model would have to know the type of work or service, the underlying conditions for performing the work, and the associated timeframe (i.e. project start, binding milestones, project end). This paper investigates if combined pricing items meet these requirements whilst putting a particular focus on the relevance of combined pricing to construction management and economics, including construction expert opinions on the chances and risks of this approach. For this purpose, this paper primarily deals with reinforcing works.

AB - Appropriate costing creates a plausible, reliable basis for determining the bid price. One of the key requirements that applicable laws, standards, and guidelines stipulate for (structural) specifications is that works should be specified clearly, completely and objectively so as to ensure bid comparability. Furthermore, cost estimates should be possible for the specified works (excluding non-quantifiable risks). The specifying party usually requires combined pricing because works related to various structural components, construction trades, subsoil types, rebar diameters etc. that necessitate a variety of types and combinations of production factors are merged into a single item. Combined pricing occurs whenever a unit price is to be derived from different cost estimates with respect to the utilization of production factors. This means that bidders intending to develop an activity-based costing model would have to know the type of work or service, the underlying conditions for performing the work, and the associated timeframe (i.e. project start, binding milestones, project end). This paper investigates if combined pricing items meet these requirements whilst putting a particular focus on the relevance of combined pricing to construction management and economics, including construction expert opinions on the chances and risks of this approach. For this purpose, this paper primarily deals with reinforcing works.

KW - Building specification

KW - Expert survey

KW - Management of chances and risks

KW - Reinforcement ratio

KW - Reinforcing works

UR - http://www.scopus.com/inward/record.url?scp=85070385254&partnerID=8YFLogxK

M3 - Conference contribution

BT - ISEC 2019 - 10th International Structural Engineering and Construction Conference

A2 - Ozevin, Didem

A2 - Ataei, Hossein

A2 - Gurgun, Asli Pelin

A2 - Modares, Mehdi

A2 - Yazdani, Siamak

A2 - Singh, Amarjit

PB - ISEC Press

ER -