STUDI PENENTUAN NILAI MARKUP MINIMUM SEBAGAI STRATEGI UNTUK MEMENANGKAN PENAWARAN PROYEK KOSNTRUKSI DENGAN MODEL FAIR AND REASONABLE MARKUP (FARM)

Abstract

The rapidly growing in the development of construction project in
Indonesia has brought a very powerful impact in the construction business. The
rise of the development of construction business has led to tight competition for
contractors to win the tender. A model of Fair and Reasonable Markup (FARM) by
Farid and Boyer in 1985 is used to determine the smallest markup value /
minimum bid price that used by contractors to meet the return on investment /
capital which is expected in the project. By using FARM models, contractors are
expected to determine a price that is competitive, but it still can generate sufficient
profits for the contractors as bidders. The study results in markup values ranging
from 1.58% to 1.69% and the rate of return on investment expected by the
contractor is about 20% per year.