acceptable mark-up rate

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acceptable mark-up rate

Post by tazmanian on Tue Jun 25, 2013 5:45 pm

Hi
What is the acceptable mark-up rate for building contractors?

thanks

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Re: acceptable mark-up rate

Post by leobcaleja on Sat Nov 23, 2013 11:23 am

I think DPWH has prescribed mark-up rates for DPWH infra projects.
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Re: acceptable mark-up rate

Post by regina avelino on Mon Nov 25, 2013 10:07 am

my opinion on the matter. I don't think there is a provision from other sources with regard to mark-ups.

There is an upper limit or ceiling for bid prices, which is the ABC. This will be the check and balance principle, brought about by competitive bidding itself. In other words, the requirement of setting an ABC protects the procuring entity from unwanted bidders who would usually bid for unrealistic high prices, especially if the bid price is way beyond the said ceiling as such practice will cause the unwanted bidder to be disqualified from participating in the ensuing procurement activity.


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Re: acceptable mark-up rate

Post by leobcaleja on Mon Nov 25, 2013 2:37 pm

Just the same, in the preparation of the ABC by the PE, it has to have its guidelines for establishing the direct cost and indirect cost (mark-up) for the proposed project. In the case of DPWH, you can refer to DO No. 12, Series of 2011.
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Re: acceptable mark-up rate

Post by regina avelino on Mon Nov 25, 2013 3:33 pm

noted on the department order no. 12. Please apprise us if this will be the standards in preparing the ABC for GOCCs like and whether this is applicable for the construction of buildings (not bridges and highways).

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Re: acceptable mark-up rate

Post by leobcaleja on Mon Nov 25, 2013 5:10 pm

DPWH guidelines on the preparation of ABC is applicable not only to bridges and highways but all public works structures, including govt. buildings. As to the guidelines on the preparation of ABC, DPWH issued another revision as per DO No. 72, Series of 2102, dated Oct. 5, 2012. Note that this is a guideline and not a standard. But since DPWH has been implementing projects for quite some time, even projects of other govt. agencies, I can say that other govt. agencies refer to this DPWH guidelines for their preparation of the ABC.
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Re: acceptable mark-up rate

Post by nEwbiE on Thu Oct 22, 2015 4:40 pm

hi po..just like to ask if the contractor added mark-ups on non-civil work items such as safety and health, traffic management and facilities for the engineer will those be considered? or should it be deducted because as per sec. B.7 of DO 72 non-civil works should not be subjected to mark-ups for OCM?

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