| Title |
An Analysis on the Risks at the Subcontract Tender in Construction Projects |
| Abstract |
The purpose of this study is to provide preliminary data for the risk management model enabling subcontractors to figure out the various risks and uncertainties which the subcontractors may encounter in estimating subcontract tender prices. The coverage of the variability of subcontract tenders as well as the factors affecting such variability were sampled and surveyed in a way of face to face interviews with the decision makers of 56 specialty construction firms in Seoul. From the 35 classified risks, subcontract conditions, safety issues and industrial relations problems, and the reputation and competence of the prime contractor were found to be the most critical affecting subcontract tender prices. Subcontractors have appeared to make mark-ups to cope with such risks, which causes their tender prices to increase by up to 10.97% of direct cost. The size of subcontractor firm appeared to be an important variable in determining their tender prices. |