Pricing and construction contract type selection model

Abstract

Choosing the pricing of a construction project and the type of construction contract from the perspective of customers is a responsible and complex process. The success of a construction project depends on the correct decisions taken in the preparation of tender documents. This process is complex, and the most mistakes are made in this phase. Disputes between customers and contractors arise during the implementation of a contract, which can have a significant impact on the success of the project. There have been a number of studies on the choice of construction project costs from the point of view of contractors when submitting commercial bids. The main objective of this study is to propose a mathematical model from the point of view of customer, and an online tool for the pricing of a construction project and for the selection of the type of construction contract. The paper analyses scientific sources, presents the algorithm of the mathematical model, the application of the mathematical model in a real construction project, draws conclusions and makes recommendations on the appropriate pricing and type of construction contract.