The guaranteed maximum price contract as call option

Due to increasing constraints on project duration and costs, together with the increasing implication of contractors in the design process, guaranteed maximum price (GMP) contracts are likely to become common in the future. This paper explores a new approach for evaluating the remuneration of the contractor. The GMP contract is considered as a hybrid arrangement consisting of a cost reimbursement contract and a call option on a fixed price contract. The option pricing theory is used as a conceptual framework to assess the GMP contract and the contractors' remuneration.     

Rational under‐pricing in bidding strategy: a real options model

Under‐pricing in construction tenders is a common phenomenon and is commonly explained by the need of cash flows and penetration strategy. However, these explanations involve profit cutting and therefore are not plausible in explaining a long‐term persistent phenomenon of under‐pricing. A real options model is proposed and using the binomial lattice method a real‐life construction project tender was analysed to examine how management flexibility and uncertainty provide real options value. When uncertainties of cost items in a tender exist and choices are available to defer and switch modes of construction, then a valuable option is available to the bidders. It amounts to about 4% of the lump sum tendered in our case. The under‐priced portion is the options value which the bidder is willing to pay for the flexibility and the uncertainty. These findings enable contractors to be more competitive and to estimate construction costs more accurately in devising their bid strategies.     

The British housing market: contained and exploding1

While the long run trend in housing prices in the UK has been upwards since the mid‐1950s the post 1998 boom represents short term volatility and threatens stability in the wider economy. This paper argues the fundamental reason driving both the rise in the real price of housing and its increased volatility is the increasing constraint on the supply or urban space applied by the British system of land use planning and its attempts to contain urban areas. Housing is an economic good and the supply of available housing space is allocated through the market. As incomes rise people try to purchase more space. This not only drives up the price of space and so housing but it also makes the supply of housing more inelastic and so the price more volatile. Housing increasingly behaves like a financial asset marker rather than a market for housing services.     

Impact of crude oil market behaviour on unit bid prices: the evidence from the highway construction sector

It is well known that the cost of highway construction is affected by the cost of crude oil. While this relationship is highly visible for construction items such as asphalt cement (a by‐product in the process of refining oil), the effects of the crude oil prices on the cost of other construction items, such as concrete cement or construction operations are less direct, but equally important. For unit‐based contracts without price adjustment clauses, this relationship is of a particular significance. In fact, an increase in price of fuel could result in substantial losses, as contractors are not protected. Hence, to hedge against this risk, contractors are likely to incorporate a premium in bid prices to manage project risks. The objective of this paper is to investigate the evidence of this behaviour. New evidence shows that the expected change in oil prices (the difference between future and spot price) and the implied volatility in the oil market affect the price of bid items for contracts without price adjustment clauses. Such results allow for more effective implementation of risk management on project‐ and programme‐level basis.     

浅析建筑工程不同计价合同的风险分担

本文对工程建设合同的类型进行了简单的描述,阐述了工程合同进行风险管理的依据,通过合同类型的定义对固定总价合同、单价合同和成本加酬金合同进行了辨析,得出在三种不同的计价合同下业主和承包商的风险分担,并在风险承担者、对工程的管理、工程变更的可能性、对工程结算的难易等方面对固定总价和、单价合同和成本加酬金合同三种计价合同进行阐述并给出了各自的应用范围。     

清单计价下的固定总价合同结算办法探讨

随着我国经济的发展,工程量清单计价方式已在我国建筑市场中得到了一定程度上普及。然而在签订工程固定总价合同时又出现了很多问题,扰乱了建筑市场的正常经营秩序。因此,对清单计价下的固定总价合同结算办法进行规范就显得尤为重要。     

浅谈建安工程成本管理

建安工程成本管理为工程造价全过程管理。投资决策阶段对楼盘的定位是关键;工程设计及优化设计是建安成本管理最重要的前提;选择工程承包单位与材料供应商,进行公开招投标是控制工程成本的最有效办法;合同及造价确定是整个工程成本的核心;还要把好工程材料、设备价格关及提高工程变更的预见性;工程结算是核定建安工程成本的最终依据及核定新...     

The British housing market: contained and exploding

While the long run trend in housing prices in the UK has been upwards since the mid-1950s the post 1998 boom represents short term volatility and threatens stability in the wider economy. This paper argues the fundamental reason driving both the rise in the real price of housing and its increased volatility is the increasing constraint on the supply or urban space applied by the British system of land use planning and its attempts to contain urban areas. Housing is an economic good and the supply of available housing space is allocated through the market. As incomes rise people try to purchase more space. This not only drives up the price of space and so housing but it also makes the supply of housing more inelastic and so the price more volatile. Housing increasingly behaves like a financial asset marker rather than a market for housing services.     

Pricing strategy in the US construction industry

This paper presents several issues related to pricing in construction. First, problems with current pricing strategy in construction are explored. Second, pricing strategies based on a market-based approach are proposed. Third, survey findings of the top 400 US contractors are presented regarding their current pricing practices and the applicability of the proposed pricing strategies. In conclusion, the belief that current pricing strategy in construction is predominantly cost-based is confirmed by the survey findings; indeed, in setting the markup, most contractors rely on their intuition after subjectively assessing the competition. The three internal pricing variables that have the largest statistically significant contingency coefficients with pricing strategy are ‘marketing intelligence capabilities’, ‘annual contract value’, and ‘the type of client in most projects’. ‘Owner's characteristics’, ‘competitors'characteristics’, and ‘market demand’ are statistically significant external variables in making pricing strategy decisions. A change of bidding procedure is proposed so that all parties in construction can maximize the benefits of market-based pricing strategies.     

Construction project risks: further considerations for constructors' pricing in Hong Kong

Construction project risks affect contractors' tender price. A host of factors influencing tender prices were identified and the importance of these factors evaluated by making use of the data collected in a postal questionnaire survey conducted to the ‘Buildings’ contractors in Hong Kong. Out of 60 factors identified, the availability of required cash, uncertainty in costs estimates, urgent need for work, past experience in similar projects and contract size are considered most important. The need for work and the amount of experience are similar to those factors affecting bidding decisions of top UK contractors. The findings suggest that in the upward adjustment of tender prices, the large‐size contractors are more concerned with the uncertainty in costs estimates while the medium‐ and small‐size contractors care more about no past experience. In the downward adjustment of prices, the large size of the contract is the main factor affecting the pricing of the large‐ and medium‐size contractors while the urgent need for work is the main drive for the small‐size ones. There are significant differences between the contractors' perceptions of the importance of the risk factors. This is consistent with differing attitudes towards bid mark‐up decisions of the large‐ and medium‐size contractors in Singapore.     

建设工程项目材料价格调整争议处理探讨——兼议行政监督部门审计和社会中介审价的作用

在工程项目实施过程中,工程材料价格的调整一般随设计变更而产生。尽管施工合同有涉及材料价格调整的条款,但是在工程实践中仍然会出现材料价格调整方面的纠纷。本文通过工程案例说明材料价格调整的原则,并对行政监督部门审计和社会中介审价过程中出现的一些问题进行探讨。     

Vergleichende Lebenszykluskostenanalyse für Fußgängerbrücken aus unterschiedlichen Werkstoffen

Comparative life‐cycle cost analysis of pedestrian bridges made from different materials. Considerable maintenance costs may accrue during the life time of infrastructure objects. Therefore, the choice of construction options should not only be made based on purchase price, but also taking into account expected follow‐up costs. Against this background, a study conducted with Deutsche Bahn AG and Peter Maier Leichtbau GmbH analyzed which construction material promises the best overall cost‐effectiveness for pedestrian bridges. Cost‐effectiveness was evaluated based on a life‐cycle‐cost analysis. This study investigated pedestrian bridges built of conventional construction materials wood, steel and reinforced concrete, as well as bridges made of aluminium alloy. An annuity was chosen to be the comparison value for life‐cycle costs. For coping with uncertainties in cost determination and forecasting, diverse sensitivity analyses were used to verify their effects on the final results. Aluminium alloy came out to be the most cost‐effective option for the bridge system investigated within this study.     

物价波动下合同价格调整条款的构建

对于物价变化引起的合同价格调整,长期的结算习惯是遵照当地建设行政主管部门发布的规范性文件办理。在市场经济条件下合同价格调整条款作为工程施工合同的重要条款之一,才是调整工程价格的主要依据。文章对比分析各地行政主管部门发布的规范性文件的基础上,主要对调价的材料范围、物价风险包干的幅度、主材调整的数量和材料价差的确定进行了研究,提出了较为全面、合理的物价波动下工程价格调整的合同条款设计。     

浅谈国际工程投标报价应重视的几个问题

分析了投标报价应重视的问题,从合同分析、现场调查、报价与规范、施工组织的结合、市场信息积累四个方面,提出了对应的工作方法,为国际工程投标报价提供了一些参考意见。     

浅谈定额计价方法与工程量清单计价方法的区别

定额计价方法和工程量清单计价方法是我国建设市场发展过程中不同阶段形成的二种计价方法。本文从价格的表现形式、单位工程项目划分、编制工程量的主体、计价依据、施工措施性消耗纳入位置、工程量计算规则和合同价格的调整方式等方面分析了定额计价方法和工程量清单计价方法的不同表现。提出工程量清单计价的本质是要改变政府定价模式,建立起"市场形成造价"机制,是促进优质企业做大做强,创造管理规范、竞争有序的建设市场的关键措施。     

Contractors’ perception of risk factors affecting cost overrun in building projects in Palestine

This study aims at identifying the risk factors affecting cost overrun in building construction projects in the West Bank in Palestine from contractors’ viewpoint. To do so, 31 contractors working on building construction completed a structured questionnaire survey. Forty factors were identified through a literature review. These factors were grouped into five groups: cost estimating, construction items, construction parties, environmental, and financing. The results indicated that the top five affecting factors are fluctuation in currency exchange rate, project financing, contract management, level of competitors, and cost of materials. The findings can support the government in improving the regulations to meet the construction market needs, owners in planning and designing and evaluating policy, contractors and managers in planning and taking external and internal risks when costing and scheduling contracts, consultants in applying comprehensive contract information, and workers in conducting their day-to-day activities. The results will fill an important research and practice gap.     

建设工程施工承包合同风险评估探析

探讨了对建设工程施工承包合同风险评估即合同的合法性评估、完备性评估、合同双方的责任和权益评估、合同风险的评审、认定和评价,以保证承发包双方的利益,避免项目目标的无法实现,减少纷争,构建和谐共赢的社会主义市场经济环境。     

清单计价下工程措施方案的约束力分析

从梳理工程措施方案的合同地位入手,分别从公平和效率的角度对工程措施方案约束力的一般性和特殊性进行深入剖析。分析表明,随着国内建筑市场的招标评审机制日趋与国际接轨,就工程措施方案而言,承包商的自主选择权将逐步得到加强,而业主的主导控制权也将逐步弱化。     

国际EPC项目合同文件及其风险分析

EPC模式是国际广泛采用的一种工程承包模式,也是我国承包商在国际工程承包市场做大做强所必须面对和熟悉的一种承包模式。针对我国承包商在EPC项目合同管理方面的薄弱环节,文章结合GN-POC项目对大型EPC项目的合同文件及其风险分析做了一些初步探讨。     

建材价格异动对固定价格合同履行影响的研究

固定价格合同是常见的施工承包合同形式,但是采用固定价格合同时承包方将承受较高的风险,特别是近年来建材价格异常变动加剧,使固定价格合同难以正常履行。《合同法》等相关法律为固定价格合同在难以履行的情况下进行调整提供了法律依据,2009年最高人民法院以司法解释的形式明确了情势变更原则,使得应用情势变更原则调整固定价格合同有法可依。文章对南京市施工企业的实地调研为固定价格合同的调整和情势变更原则的应用提供了现实依据。