Contractor’s Estimation of Cost and Bidding Strategy
Contractor’s estimation and bidding process, bidding models, determination of optimum mark-up level, bidding and estimation practices in Indian construction industry
8.1 CONTRACTOR’S ESTIMATION AND BIDDING PROCESS
The procedure of cost estimation explained in Chapter 4 is suitable mostly for small and medium projects, and that too, mostly from the owners’ perspective. For a contractor, the stakes involved are very high. The estimates should be as close as possible to the actual cost for a contractor. If the estimates are on a lower side, the contractor, even if he is likely to win the bid, may have to bear monetary losses at the time of execution. If the estimates are on a higher side, ...