Price stability and the business cycle: UK construction bidding patterns 1970-91

Simon Rawlinson and John Raftery

Construction Management and Economics, 1997, vol. 15, issue 1, 5-18

Abstract: Problems of competitive pricing and strategic management in the construction industry are discussed. A statistical analysis of tender spread patterns over the period 1970-91 shows that changing market conditions influence levels of risk exposure and in turn affect the establishment of a market-generated 'going rate' for construction. A pattern of increasing stability of pricing is identified during the 1980s, and this pattern is linked to developments in the strategic management of contracting organizations. Despite trenchant criticism of the sealed bid as a method of price determination, the industry's price levels do respond relatively quickly to changed economic conditions.

Keywords: Business Cycles; Bidding; Market Prices (search for similar items in EconPapers)
Date: 1997
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DOI: 10.1080/014461997373079

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