Exploring association rules overseeing subcontractor quotation behaviors: an empirical study in the construction industry of Taiwan

Two construction contractual parties enter negotiations to delineate terms and specifics, each aiming to negotiate the quotation to agree on a contract. The research objective is to delineate association rules overseeing subcontractors’ pricing behaviors. Through a comprehensive approach encompassing literature review and expert interviews, this study derives the attributes of quotation behaviors that inform the data collection process. The dataset encompasses information from nine significant engineering categories representing typical construction projects, featuring six quotation behavior characteristics. A total of 10433 quotations sourced from private sector endeavors over the past 10 years have been analyzed. Employing the Apriori algorithm, each engineering category yields between 2 and 5 association rules. A prevailing finding suggests that subcontractors across all sub-work types typically provide discounts of less than 10%, while their profit margins remain relatively stable across different work packages. The frequency of quotations shows considerable variability based on procurement quantity.

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Publication Details

Journal
Canadian Journal of Civil Engineering
Published
2024-08-22
DOI
https://doi.org/10.1139/cjce-2023-0469
Primary Topic
Law, logistics, and international trade
Type
article
Field-Weighted Citation Impact
0.00
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article

Exploring association rules overseeing subcontractor quotation behaviors: an empirical study in the construction industry of Taiwan

Jieh‐Haur Chen, Y. F. Lee, Hsi-Hsien Wei, Chih-Kuo Chang
Canadian Journal of Civil Engineering
Law, logistics, and international trade
article

Exploring association rules overseeing subcontractor quotation behaviors: an empirical study in the construction industry of Taiwan

Jieh‐Haur Chen, Y. F. Lee, Hsi-Hsien Wei, Chih-Kuo Chang
article en

Abstract

Two construction contractual parties enter negotiations to delineate terms and specifics, each aiming to negotiate the quotation to agree on a contract. The research objective is to delineate association rules overseeing subcontractors’ pricing behaviors. Through a comprehensive approach encompassing literature review and expert interviews, this study derives the attributes of quotation behaviors that inform the data collection process. The dataset encompasses information from nine significant engineering categories representing typical construction projects, featuring six quotation behavior characteristics. A total of 10433 quotations sourced from private sector endeavors over the past 10 years have been analyzed. Employing the Apriori algorithm, each engineering category yields between 2 and 5 association rules. A prevailing finding suggests that subcontractors across all sub-work types typically provide discounts of less than 10%, while their profit margins remain relatively stable across different work packages. The frequency of quotations shows considerable variability based on procurement quantity.

Canadian Journal of Civil EngineeringVol. 52(6)
Hong Kong Polytechnic University (HK), National Central University (TW), Japan Industrial Safety and Health Association (JP)
Industry, innovation and infrastructure
Openalex Percentile: Top 79%
Law, logistics, and international trade
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Exploring association rules overseeing subcontractor quotation behaviors: an empirical study in the construction industry of Taiwan — Jieh‐Haur Chen, Y. F. Lee, et al. · Canadian Journal of Civil Engineering (2024) | TGRS Research Map | TGRS