Recent research findings on pricing strategies both in general and in construction are reviewed and
explored. First, pricing strategy in general, mostly in the manufacturing industry, is reviewed. It
includes the concepts of pricing strategy, predatory pricing, price wars, and price policy development.
Second, pricing strategy in construction is explored. It includes various pricing models for bid price
determination, such as the Friedman-Gates models, expected utility models, risk-pricing model, and
the crew-day, multiple regression, and fuzzy-set pricing models. In conclusion, pricing strategies in
construction are still predominantly based on a cost-based approach. More recent models try to close
the gap between the models and the real life conditions of a bidder?s decision-making process. It
appears that there are more problems in cost-based pricing as opposed to market-based pricing.
Consequently, it is highly recommended that, alternative pricing approach such as that are closer to
the proposed market-based pricing model need to be explored and developed for use in the
construction industry.

Creator(s)

• KRISHNA MOCHTAR
• DAVID ARDITI

Contributor(s)

-

Publisher

Universitas Kristen Petra; 2000

Language

English

Category

jou – Journal

Sub Category

-

Source

Dimensi teknik Sipil, Vol.. 2, No. 1, Maret 2000: 56 - 64; Krishna Mochtar (NA00000150), David Arditi (NA00000151)

Subject(s)

-

File(s)

• jiunkpe-ns-jou-2000-na00000150-2252-pricing_strategies-resource1.pdf