The two elements of a tender sum are the cost estimate and the
mark-up. Variations in tenders can be attributed to inaccuracy
in the estimate and variations in the applied mark-up. The
weaknesses of current published literature are that the causes of
the inaccuracy in the estimate or the variability in a mark-up
are not defined in such a way that they can be analysed and
evaluated. The inaccuracy of a cost estimate results from
combining the inaccuracy of its constituent elements. Thus the
inaccuracy of each element needs to be evaluated. The
consequences of estimating inaccuracy and mark-up variability are
inadequately described in current literature, which tends to
assume that mark-up variability is negligible.
This research addresses these weaknesses. [Continues.]
A Doctoral Thesis. Submitted in partial fulfilment of the requirements for the award of Doctor of Philosophy at Loughborough University.