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Arditi, D (1984) Graduate education in construction management. Construction Management and Economics, 2(03), 193-9.

Baxendale, A (1984) Construction resource models by Monte Carlo simulation. Construction Management and Economics, 2(03), 201-17.

Bennett, J and Ormerod, R N (1984) Simulation applied to construction projects. Construction Management and Economics, 2(03), 225-63.

Cusack, M M (1984) The use and limitations of mathematical models in the planning and control of construction projects. Construction Management and Economics, 2(03), 219-24.

Uher, T E and Runeson, G (1984) Pre-tender and post-tender negotiations in Australia. Construction Management and Economics, 2(03), 185-92.

  • Type: Journal Article
  • Keywords: bid-shopping; general contractor; price negotiation; sub-contracting; tendering
  • ISBN/ISSN: 0144-6193
  • URL: https://doi.org/10.1080/01446198400000017
  • Abstract:

    One of the main features of the Australian building industry is the high level of sub-contracting of building works. A survey of 43 sub-contractors is reported, regarding various aspects of the relationship between sub-contractors and general contractors. In particular, the practice of ’bid shopping’ is highlighted, in which the general contractor in various ways attempts to reduce the sub-contractor’s price below that of the tender. Generally the sub-contractors were strongly against bid shopping attempts to tie with general contractors and negotiations in general. However, the strength of the responses was determined by the size of the firms. The larger firms were more often open to negotiations and deals than the smaller firms. The overall benefits to the general contractors who ’shop’ are doubtful, most sub-contractors adjust their mark up by up to 20% to allow for such negotiations.