PRICING STRATEGY IN THE INDONESIAN CONSTRUCTION INDUSTRY

Authors

  • Krishna Mochtar Indonesia Institute of Technology, Department of Civil Engineering, Serpong, Tangerang 15320

DOI:

https://doi.org/10.9744/ced.4.2.pp.%2085-93

Abstract

Issues related to pricing strategy in the Indonesian construction industry are covered%2C including problems of current pricing strategy in construction%2C exploration of pricing strategies with a market-based approach%2C and survey findings of the top Indonesian contractors regarding their current pricing practices and the applicability of market-based pricing strategy models developed by Mochtar and Arditi. Comparisons with similar survey findings of the top U.S. contractors are conducted whenever possible. In conclusion%2C the belief that current pricing strategy in construction is predominantly cost-based is confirmed by the survey findings%3B indeed%2C in setting the markup%2C most contractors rely on subjective assessment of the competition. Using simulated bidding scenarios%2C it is discovered that Indonesian contractors tend to be more market-based as they know more about the owner%5C%27s characteristics%2C competitors%5C%27 characteristics%2C and market demand. Consequently%2C the implementation of bidding procedure proposed by Mochtar and Arditi is supported. To maximize the benefits of market-based pricing strategies%2C the bidding procedure change should be explored by all parties involved in the Indonesian construction industry.
Abstract in Bahasa Indonesia :

Cost-based+pricing%2C+market-based+pricing%2C+pricing+variables%2C+bidding+procedure.

Downloads

Published

2004-06-02

How to Cite

Mochtar, K. (2004). PRICING STRATEGY IN THE INDONESIAN CONSTRUCTION INDUSTRY. Civil Engineering Dimension, 4(2), pp. 85–93. https://doi.org/10.9744/ced.4.2.pp. 85-93

Issue

Vol. 4 No. 2 (2002): SEPTEMBER 2002

Section

Articles

License

Authors who publish with this journal agree to the following terms:
  1. Authors retain the copyright and publishing right, and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
  2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
  3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) followingthe publication of the article, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).