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PRICING STRATEGY IN THE INDONESIAN CONSTRUCTION INDUSTRY Krishna Mochtar
Civil Engineering Dimension Vol. 4 No. 2 (2002): SEPTEMBER 2002
Publisher : Institute of Research and Community Outreach - Petra Christian University

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (158.966 KB) | DOI: 10.9744/ced.4.2.pp. 85-93

Abstract

Issues related to pricing strategy in the Indonesian construction industry are covered%2C including problems of current pricing strategy in construction%2C exploration of pricing strategies with a market-based approach%2C and survey findings of the top Indonesian contractors regarding their current pricing practices and the applicability of market-based pricing strategy models developed by Mochtar and Arditi. Comparisons with similar survey findings of the top U.S. contractors are conducted whenever possible. In conclusion%2C the belief that current pricing strategy in construction is predominantly cost-based is confirmed by the survey findings%3B indeed%2C in setting the markup%2C most contractors rely on subjective assessment of the competition. Using simulated bidding scenarios%2C it is discovered that Indonesian contractors tend to be more market-based as they know more about the owner%5C%27s characteristics%2C competitors%5C%27 characteristics%2C and market demand. Consequently%2C the implementation of bidding procedure proposed by Mochtar and Arditi is supported. To maximize the benefits of market-based pricing strategies%2C the bidding procedure change should be explored by all parties involved in the Indonesian construction industry. Abstract in Bahasa Indonesia : Cost-based+pricing%2C+market-based+pricing%2C+pricing+variables%2C+bidding+procedure.
MARKETING EXPENDITURES IN THE INDONESIAN CONSTRUCTION INDUSTRY Krishna Mochtar
Civil Engineering Dimension Vol. 6 No. 2 (2004): SEPTEMBER 2004
Publisher : Institute of Research and Community Outreach - Petra Christian University

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (110.435 KB) | DOI: 10.9744/ced.6.2.pp. 64-71

Abstract

In the 1960s, a “new” marketing concept known as "four Ps marketing mix" appeared and shifted the focus from the product to the customer. The objective of the new concept was not only profit, and the means of achieving the objective expanded to include the entire “marketing mix”: product, price, promotion, and place (channels and distribution). Expenditures of marketing in a company should be explored from these mixes, because each mix would have an impact on the total marketing expenditures. These four mixes are the main aspects of marketing and thus, should represent almost all expenditures in marketing in a company. From this research it is discovered that the responding contractors have only average efforts to improve or innovate their service, mostly using the latest construction methods and management approach. Correlated to their policy in the fourth mix (Place), they are still national oriented and not international oriented in marketing their services, this may lead to the big question of their survival; their motivation to innovate is only average while their target market is only national market. Their attitude to use more intensive “fees” policy rather than both product innovation and promotion is also interesting. Big percentage of the responding contractors assumes these “fees” are regular marketing practices. This attitude may better be stopped to make the construction industry practices healthier. Attitude to use more product innovation and true promotion approach in marketing in construction must be encouraged systematically in the future, to improve competitiveness in the long term.
ALTERNATE PRICING STRATEGIES IN CONSTRUCTION Krishna Mochtar; David Arditi
Civil Engineering Dimension Vol. 2 No. 1 (2000): MARCH 2000
Publisher : Institute of Research and Community Outreach - Petra Christian University

Show Abstract | Download Original | Original Source | Check in Google Scholar | Full PDF (44.295 KB) | DOI: 10.9744/ced.2.1.pp. 56-64

Abstract

Recent research findings on pricing strategies both in general and in construction are reviewed and explored. First%2C pricing strategy in general%2C mostly in the manufacturing industry%2C is reviewed. It includes the concepts of pricing strategy%2C predatory pricing%2C price wars%2C and price policy development. Second%2C pricing strategy in construction is explored. It includes various pricing models for bid price determination%2C such as the Friedman-Gates models%2C expected utility models%2C risk-pricing model%2C and the crew-day%2C multiple regression%2C and fuzzy-set pricing models. In conclusion%2C pricing strategies in construction are still predominantly based on a cost-based approach. More recent models try to close the gap between the models and the real life conditions of a bidder%5C%27s decision-making process. It appears that there are more problems in cost-based pricing as opposed to market-based pricing. Consequently%2C it is highly recommended that%2C alternative pricing approach such as that are closer to the proposed market-based pricing model need to be explored and developed for use in the construction industry. Abstract in Bahasa Indonesia : Pricing+strategy%2C+cost-based+pricing%2C+market-based+pricing.
Manfaat Penerapan Metode AON (Activity On Node) untuk Penjadwalan Proyek Bangunan Bertingkat Tinggi rachmi yanita; Intan F Ningrum; Krishna Mochtar
Jurnal IPTEK Vol. 4 No. 2 (2020): Jurnal IPTEK
Publisher : Institut Teknologi Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.31543/jii.v4i2.165

Abstract

The construction project is assessed based on the realization of the construction according to the quality, time and cost in the planning document. To monitor implementation, a scheduling method is needed that can describe the relationship between activities and implementation time, so that the work can be completed according to the target duration specified in the construction contract. Two methods are known in scheduling critical paths, namely Activity On Arrow (AOA) and Activity On Node (AON) where AOA is more widely used in projects, whereas AON has the advantage of 4 relationships between activities with activity symbols on the box, while AOA is only 1 type with symbol of the activity on the arrow. The purpose of this study is to obtain the benefits of using AON rather than AOA by scheduling using the two methods on the schedule of the construction of a high-rise building in Banten, using Microsoft Project (MS Project) software, and analyzing the differences. In MS Project AOA is known as the Activity Diagram Method and AON with the Precedence Diagram Method. From the comparative analysis results obtained that with AOA obtained 74 activities and 48 activities with AON with the same duration and critical activities in both methods. The AON diagram can better illustrate the relationship between activities that are simpler and simpler with a total efficiency of 35%. Keyword: AOA, AON, relationship between activities, scheduling method