Open AccessDetermine The Value of Mark Up at Bid Price Hotel Buildings
Author(s) -
Mega Dwijayanti,
Judit Johny
Publication year - 2020
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/852/1/012047
Subject(s) - bidding , construction bidding , value (mathematics) , competitor analysis , operations research , process (computing) , plan (archaeology) , economics , operations management , microeconomics , business , computer science , actuarial science , mathematics , marketing , project management , project planning , management , pre construction services , archaeology , machine learning , history , operating system
Cost plan has an important role in construction projects. Every part of activites need cost from preliminary to hand over the project. As an owner representative to control the budget project, a quantity surveyor has to prepare an owner estimate. The owner estimate is a reference to evaluate the quotation in bidding process. The accuracy of calculation owner estimate is very important. Cost-based pricing is one of the strategies in the bidding process, the formula of quotation is cost of the project plus mark up. In the process of bidding, contractors have their consideration of internal and external factors in every project, so they produced a different value of mark up. Many experts made formula for bidding strategy, in Friedman’s and Gates’s formula the value of mark up is determined by probability of winning in every contractor. Purpose of this research is to determine the amount of mark up by Friedman’s and Gates’s formula. The result of analysis with Friedman’s and Gates’s formula is more or less at seven percent of mark up. The result is determined by number and type of competitors.