Developing the Tenders Pricing In Iraq Building Sector Using Cost Activities Technique
Engineering and Technology Journal,
2016, Volume 34, Issue 14, Pages 599-615
AbstractThe world is seeing today the evolution of large technological development as a result of the growing role of indirect cost in construction projects in addition to the intense competition between construction companies to obtain lucrative contracts, this require the development of appropriate solutions to address deviations in determining the cost of projects through the development of bidding pricing process.
The research aims to demonstrate the three axes (definition of the characteristics and features (ABC) system and its importance , and fundamentals on which the steps to apply, the accuracy of information provided by (ABC) system, which contribute to addressing the lack of precision in the bidding pricing, and the application of (ABC) system on one of the construction companies in the private sector in line with the size and activity of the company researched contributes to the re-evaluation and to help in making real financial decisions). To achieve these goals we put three hypotheses are (traditional systems provide distorted results and inaccurate to allocate costs indirect, application (ABC) system to achieve optimization in the calculation and allocation Indirect costs, which lead to a bidding pricing accuracy, and the application of (ABC) system helps the companies manage to good planning and successful decisions, and granted their greater opportunities to win the bid).
This study applied to two of the company researched projects differ in the duration of their implementation, and was completion within a specific cost-period, where it was providing all the information necessary for the application of the system and data by the basic steps of the design of the system with putting of the impact of the implementation of the duration factor which is called (the time factor).
The study showed a difference in the cost of projects, where the results indicate that there is an increase in the cost of the first project and a decrease in the profit margin of the same amount, according to the system (ABC) compared with the traditional system, as noted the presence of a decrease in the cost of the second project with an increase in profit margin by the same amount according to the system (ABC) compared with the traditional system, which confirms that the application system (ABC) leads to the accurate pricing of the bids.
The most important recommendations of this study encourage construction companies in the private sector to implement the system (ABC) in the bidding pricing as it provides a large and accurate information gives companies greater chances to win tenders and make a profit instead of adopting the lowest prices method ,as in the traditional systems or personal judgments in estimating the cost of projects.
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