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An Analysis of the Importance of the Risk Factors Influencing the Calculation of the Subcontract Construction Bidding Cost  

Lee, Sung-Goo (목원대학교 건축학과)
Park, Tae-Keun (목원대학교 건축학부)
Publication Information
Korean Journal of Construction Engineering and Management / v.8, no.2, 2007 , pp. 109-117 More about this Journal
Abstract
The construction environment has the trend of oversizing and professionalizing, the increase of the construction period, and the risk factors and the uncertain factors which are important in the construction bid. The misunderstanding and the lack of knowledge of the subcontractor result in the decrease of the profit or the deficit. In conclusion, these are supposed to give the financial burden to the subcontractor. So, it is very important to predict the construction preparation cost calculation by the risk factors in the bidding stage and to calculate the bid unit cost considering the target profit of the subcontractor in the process of the mutual agreement and performance of the contract. In these points of view, this study analyzes how the importance of the risks influencing the bidding cost calculation affect the construction cost, and this analysis can be used as the basic data to establish the suitable bid strategy of the subcontractor.
Keywords
Risk Factor; Impacting Factors; Risk Importance; Contingency;
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