Presenting a pricing model that reduces risk and offers potentially considerable rewards, this book offers a fresh perspective on the prices that contractors choose for the components of large projects, such as those in the construction and civil engineering industries. A new theory on Component Unit Pricing identifies and quantifies the benefits and consequences of item pricing as this account proposes that contractors should optimize their utility by pricing items to take account of their assessed risk profiles. A CD-ROM containing software written to test this theory is also included.
