GLOBAL FACTORS AFFECTING MARGIN-SIZE OF CONSTRUCTION PROJECTS

Identifying the optimum margin-size for a project is very important in order for contractors to win a tender. The aim of this study is to investigate the "global" factors that must be considered by contractors when deciding on the margin-size, irrespective of which country the project is located. The research design is based on a meta-analysis of six disparate works undertaken in Australia, Canada, Saudi Arabia, Singapore, the UK and the USA. Cross-country comparisons are made, so as to identify factors that are considered by the majority of the contractors. One factor that affects margin-size in all the countries being investigated is the "need for work". Other "global" factors are: the risk involved owing to the nature of the work; current workload; reliability of company pricing; and competitiveness of other bids. It is recommended that contractors who are entering new geographical locations consider these factors when deciding on the margin-size of their bids. There are also factors considered in marg...