Comparative Study On Different Markup Size Decision Between Public And Private Project

In the case of China’s economic growth is slowing down, the governmentcontinued to increase investment in infrastructure, affordable housing and other publicworks, and encourage private construction investment projects and actively introduceprivate capital to participate in public worksbuilding. Following the4trillioninvestment in2008, from January2012to September, the National Development andReform Commission approved a total of1555major investment projects, including thesubway and highway infrastructure projects. According to professional estimation, thiswill make the next four years’ investment of up to1trillion yuan. President Hu Jintao atthe APEC forum also pointed out that downward pressure on China’s economic growth,it’s time to propose to upgrade infrastructure in order to promote the need for stablegrowth and economic recovery, which indicates the country in infrastructureconstruction and other public works building investment space.The same time, learning from the experience of Western developed countries, suchas the United States, which the economy develops to a certain level, the proportion ofpublic works will be gradually decreased instead on behalf of the substantial increase ofthe proportion of the investment and construction of private projects. While privateconstruction market should not be underestimated, relative to public works, buildingcorporate contractors are more likely to participate in the construction of public works,there are causes, such as public works’high-profit and the owners of credibility isrelatively higher advantage. However, as the client dominated by fierce competition inthe market environment, China’s construction market structure and the transactionsinvolved in the construction market project suggests that the construction enterprisescontractor is difficult to play an active and selective. Therefore, the market environmentin this building the Contractor shall attach importance to the tender offer decisionsinvolved in different types of projects.Based on the above background of China’s construction market, the research isaimed to offer a preliminary study in mark-up decision-making on contractors in Chinaparticipating in bidding for public works and private projects, the focus is to explorewhether there are differences as well as differencesspecific performance whichcontractors involved two types of project in the mark-up decision process. Objective toachieve the expected purpose, the research group randomly selected500level ofqualification as interviewed contractors. Questionnaire data is analysized based on the mathematical statistical tests and factor analysis. Studies have found that the contractors’decision-making to participate in bidding for public works and private projects aredifferent, and factors grouped into two categories, such as identified key differentfactors and common factors. Key factors of public works and private projects arerespectively identified.quotation decision further found that the building corporatecontractors offer decision-making where the differences in the two types of projects.The study offers two useful references. On the one hand it uncovers the contractors’decision-making in the process of bidding for public works and private constructionprojects. It can further improve the contractor’s decision-making efficiency, standardizethe Contractor’s behavior and stakeholder behavior revealedmust reference. The otherhand, it can be the basis for further research on the public works and private engineeringpoint of China’s construction market.