Key Factors Considered in Compiling Tender Prices for China’s Public Works Projects

Abstract

Recent decades have witnessed the evolution of tender evaluation approaches from using a sole parameter to using multiple criteria in the construction industry. The changes in the evaluation approach call for continuous improvement in tender pricing practices. Notwithstanding a large volume of existing studies, the way to price tenders properly in China’s public work sector has not been explored explicitly. Using a mix of research methods, such as a literature review, interviews, and a questionnaire survey, this study found seven factors critically important for contractors to price public work contracts in China. The research findings indicate that the key factors are characterized by the attributes of public works and national socioeconomic background and facilitate contractors in determining tender prices in due ways. While this study is situated in China’s public construction sector, it offers useful references for similar examinations of other construction contexts.