COMPETITIVE PRICING METHODOLOGY IN CONSTRUCTION

UDC 339.94

  • Holubava Volha Sergeevna –PhD (Economics), Assistant Professor, the Department of Economics, Construction Organization and Real Estate Management. Belarusian National Technical University (65, Nezavisimosti Ave., 220013, Minsk, Republic of Belarus). E-mail: v.holubava@gmail.com

  • Khassen Arman Akylbekuly – PhD student, the Department of Economics, Construction Organization and Real Estate Management. Belarusian National Technical University (65, Nezavisimosti Ave., 220013, Minsk, Republic of Belarus). E-mail: armanix79@mail.ru

DOI: https://doi.org/10.52065/2520-6877-2023-268-1-9

Keywords: competitive pricing, estimated rationing, pricing in construction, pricing methodology algorithm.

For citation: Holubava V. S., Khassen A. A. Competitive pricing methodology in construction. Proceedings of BSTU, issue 5, Economics and Management, 2023, no. 1 (268), pр. 69–75. DOI: https://doi.org/10.52065/2520-6877-2023-268-1-9.

Abstract

The Eurasian Economic Union (EAEU) is a relatively young international organization in which the processes of regional economic integration are still being formed. Scientific study of approaches to comprehensive modernization and harmonization of competitive pricing processes for construction services forms the basis of interstate, supranational (regional) and national regulation of construction activities.

The article presents modern methodological approaches to the transformation of the system of estimated rationing into a system of competitive pricing in construction, based on the use of project management approaches, a new grouping of costs that provide flexibility and dynamism in the formation of construction costs. In the context of the globalization of the construction services market within the EAEU countries, given the high level of competition, the uncertainty of environmental factors, which increases sharply when exporting construction services, the author proposes a new approach to the formation of construction costs, implemented in the Republic of Kazakhstan. The fundamental difference is that competitive pricing is based on the assessment of each component in the construction cost structure, the assessment of the contractor’s competitive advantages, which provide him with the opportunity to reasonably form the offer price based on the internal reserves of the organization.

The freedom of the markets of the EAEU countries ensures the expansion of opportunities, promotes the growth of competition, and accelerates the development and introduction of new technologies. The transformation of environmental conditions requires the improvement of economic approaches to managing the cost of construction, the modernization of the system of estimated rationing and competitive pricing. Therefore, the formation and development of a competitive pricing system in construction is relevant and significant not only for the Republic of Kazakhstan, but also for other EAEU countries that develop common approaches to interaction in the construction services market.

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