What Are the Factors Affecting Tender Price?
The question of what are the factors influencing tender price is a vital one for many construction companies. The research has shown that various factors affect tender price, including project size, tenderer, and industry. This article explores the factors that affect tender price. It also discusses the implications for construction companies. Here are the findings of the study. These findings are applicable in the construction industry in general, as well as in the Ghanaian context.
Cost of construction equipment and availability of construction materials were among the major factors that affect tender price. In general, the cost of equipment was ranked the fifth most important factor, followed by availability of labor and materials. The number of competitors was also important, ranking seventh and eighth in the same study. Another important factor that affects tender price is the quality of equipment. While this factor has a direct effect on price, it may not be the only one. The availability of equipment is a significant factor in public construction.
Before starting a tender, a business owner should consider how much the project costs and whether the margin for profit is high enough to justify the price. The business should also consider manpower and physical capacity. If the project requires more manpower than usual, it may be necessary to recruit additional workers. Additionally, the business must have the appropriate accreditations and qualifications to carry out the project. If the business cannot do the job, it should not bid.