Analysis of price fairness toward work quality and user satisfaction for architectural network

Abstract

Construction business is still considered as a prominent business in the entire cities in Indonesia, including Yogyakarta. Contractors compete to get project either by tender or direct order. Both methods will certainly affect the price offered by the contractors. The research aims to understand how big the price gap between tender method and direct order for architectural works along with the work quality and the owner’s satisfaction. Furthermore, several buildings in Yogyakarta become the sample of this research. The research data were collected using questionnaire, direct assessment, as well as direct interview with the contractors. The data obtained were analysed descriptively and statistically using SPSS software. The price gap between tender and direct order is 0,42% more expensive tender. On the tender method, the unit price increases followed by the increase in quality and user satisfaction. On direct order work, the price increase is followed by the increase in quality but decreased satisfaction.