With any type of project management, be it construction or otherwise, the scale of the project determines budget primarily.
How does the scale and size of contracts influence business practices within the construction sector?
The scale and size of contracts influence business practices within the construction sector simply because everything depends on the amount of work that needs to be done.
- Labour costs
- Sourcing material
When it comes to competitiveness, contract size is actually even more more crucial than contract type.
A pattern is pretty clear: Highly competitive contractors always have a preferred contract size within which they operate.
Competitiveness can be primarily influenced by the amount of standardisation within the contract type, and sizes of contract contained within a contract type.
The greater the degree of contract type standardisation and the larger the sizes of contract within a contract type, the more likely competitiveness will exist among bidders.