IDEAS home Printed from https://ideas.repec.org/a/bcp/journl/v8y2024i10p1428-1436.html
   My bibliography  Save this article

J-Selaras: A new Innovation Model for Rate Rationalization in Contract Documents

Author

Listed:
  • Mohd Nasir Saari

    (Centre of Excellence for Engineering and Technology (CREaTE), Public Works Department Malaysia, Jalan Kemus, Simpang Ampat,78000 Alor Gajah, Melaka, Malaysia.)

  • Prof. Madya Dr. Mustafa Man

    (Faculty of Computer Science and Mathematics, Universiti Malaysia Terengganu (UMT), 21030 Kuala Nerus, Terengganu, Malaysia.)

  • Mohd Adza Arshad

    (Centre of Excellence for Engineering and Technology (CREaTE), Public Works Department Malaysia, Jalan Kemus, Simpang Ampat,78000 Alor Gajah, Melaka, Malaysia.)

  • Dr. Wan Aezwani Wan Abu Bakar

    (Faculty of Informatics and Computing, Universiti Sultan Zainal Abidin (UniSZA), Besut Campus, 22200 Besut, Terengganu, Malaysia.)

Abstract

Effective rate rationalization plays a crucial role in modifying tender rates to determine equitable and rational contract amounts, particularly within the context of the construction industry in Malaysia to ensure that contractor prices do not exhibit any front-loading tendencies and establish equitable pricing for variations. Despite the importance of rate rationalization, the Malaysian construction industry grapples with various challenges in the domains of tendering and estimating. These challenges include the scarcity of precise historical data, project intricacy, time limitations, cost variations, restricted technology integration, and the competitive dynamics within the bidding environment. To address these challenges, this study introduces an innovative rationalization model that utilizes the Z-Score Altman model. This model aims to fine-tune the data and establish justifyable rates. and determine reasonable rates through meticulous data integration. Data integration, a widely accepted technique, facilitates smooth data conversion and sharing across diverse applications with different database formats and locations. The proposed model incorporates dynamic algorithms that systematically transfer data between application systems, accommodating various data formats, whether structured or unstructured. Integrating the Z-Score algorithm within the model efficiently filters out extraneous data within the Excel single-sheet file. This algorithm rapidly transfers data to multiple Excel sheets using the macro formulation, recognizing minimum and maximum values, calculating modified means, and employing cut-off analysis to narrow down the rates deemed most favorable. This research rigorously evaluates rates put forth by successful tenderers, staying within established parameters, and providing a durable algorithm that outlines the calculations and conditions guiding this thorough evaluation.

Suggested Citation

  • Mohd Nasir Saari & Prof. Madya Dr. Mustafa Man & Mohd Adza Arshad & Dr. Wan Aezwani Wan Abu Bakar, 2024. "J-Selaras: A new Innovation Model for Rate Rationalization in Contract Documents," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 8(10), pages 1428-1436, October.
    • Handle: RePEc:bcp:journl:v:8:y:2024:i:10:p:1428-1436
    as

    Download full text from publisher

    File URL: https://www.rsisinternational.org/journals/ijriss/Digital-Library/volume-8-issue-10/1428-1436.pdf
    Download Restriction: no
    File URL: https://rsisinternational.org/journals/ijriss/articles/j-selaras-a-new-innovation-model-for-rate-rationalization-in-contract-documents/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Herbert A. Simon, 1955. "A Behavioral Model of Rational Choice," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 69(1), pages 99-118.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Romero-Castro, Noelia & Piñeiro-Chousa, Juan & Pérez-Pico, Ada, 2021. "Dealing with heterogeneity and complexity in the analysis of the willingness to invest in community renewable energy in rural areas," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    2. Randall Holcombe, 2009. "The behavioral foundations of Austrian economics," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 22(4), pages 301-313, December.
    3. Peter John Robinson & W. J. Wouter Botzen, 2022. "Setting descriptive norm nudges to promote demand for insurance against increasing climate change risk," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 47(1), pages 27-49, January.
    4. Torgler, Benno & Schneider, Friedrich & Schaltegger, Christoph A., 2007. "With or Against the People? The Impact of a Bottom-Up Approach on Tax Morale and the Shadow Economy," Berkeley Olin Program in Law & Economics, Working Paper Series qt6331x6vz, Berkeley Olin Program in Law & Economics.
    5. Daniel Fonseca Costa & Francisval Carvalho & Bruno César Moreira & José Willer Prado, 2017. "Bibliometric analysis on the association between behavioral finance and decision making with cognitive biases such as overconfidence, anchoring effect and confirmation bias," Scientometrics, Springer;Akadémiai Kiadó, vol. 111(3), pages 1775-1799, June.
    6. Christina Leuker & Thorsten Pachur & Ralph Hertwig & Timothy J. Pleskac, 2019. "Do people exploit risk–reward structures to simplify information processing in risky choice?," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 5(1), pages 76-94, August.
    7. Jae Wook Yoo & Richard Reed & Shung Jae Shin & David J. Lemak, 2009. "Strategic Choice and Performance in Late Movers: Influence of the Top Management Team's External Ties," Journal of Management Studies, Wiley Blackwell, vol. 46(2), pages 308-335, March.
    8. Giovanni Calice & Levent Kutlu & Ming Zeng, 2021. "Understanding US firm efficiency and its asset pricing implications," Empirical Economics, Springer, vol. 60(2), pages 803-827, February.
    9. Westerhoff, Frank H. & Dieci, Roberto, 2006. "The effectiveness of Keynes-Tobin transaction taxes when heterogeneous agents can trade in different markets: A behavioral finance approach," Journal of Economic Dynamics and Control, Elsevier, vol. 30(2), pages 293-322, February.
    10. José Castro Caldas & Helder Coelho, 1999. "The Origin of Institutions: Socio-Economic Processes, Choice, Norms and Conventions," Journal of Artificial Societies and Social Simulation, Journal of Artificial Societies and Social Simulation, vol. 2(2), pages 1-1.
    11. Jensen, Peter D. Ørberg & Larsen, Marcus M. & Pedersen, Torben, 2013. "The organizational design of offshoring: Taking stock and moving forward," Journal of International Management, Elsevier, vol. 19(4), pages 315-323.
    12. Nagler Matthew G., 2007. "Understanding the Internet's Relevance to Media Ownership Policy: A Model of Too Many Choices," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 7(1), pages 1-28, June.
    13. Benno Torgler, 2006. "Trust in International Organizations: An Empirical Investigation Focusing on the United Nations," CREMA Working Paper Series 2006-20, Center for Research in Economics, Management and the Arts (CREMA).
    14. Ranganathan, Kavitha & Lejarraga, Tomás, 2021. "Elicitation of risk preferences through satisficing," Journal of Behavioral and Experimental Finance, Elsevier, vol. 32(C).
    15. Westerhoff Frank H., 2008. "The Use of Agent-Based Financial Market Models to Test the Effectiveness of Regulatory Policies," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 228(2-3), pages 195-227, April.
    16. Raj Chetty & Adam Looney & Kory Kroft, 2009. "Salience and Taxation: Theory and Evidence," American Economic Review, American Economic Association, vol. 99(4), pages 1145-1177, September.
    17. Steffen S. Bettin, 2020. "Electricity infrastructure and innovation in the next phase of energy transition—amendments to the technology innovation system framework," Review of Evolutionary Political Economy, Springer, vol. 1(3), pages 371-395, November.
    18. Andrew Caplin & Mark Dean & Daniel Martin, 2011. "Search and Satisficing," American Economic Review, American Economic Association, vol. 101(7), pages 2899-2922, December.
    19. Shi, Yi & Deng, Yawen & Wang, Guoan & Xu, Jiuping, 2020. "Stackelberg equilibrium-based eco-economic approach for sustainable development of kitchen waste disposal with subsidy policy: A case study from China," Energy, Elsevier, vol. 196(C).
    20. Lawrence Bunnell & Kweku-Muata Osei-Bryson & Victoria Y. Yoon, 0. "RecSys Issues Ontology: A Knowledge Classification of Issues for Recommender Systems Researchers," Information Systems Frontiers, Springer, vol. 0, pages 1-42.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bcp:journl:v:8:y:2024:i:10:p:1428-1436. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Pawan Verma (email available below). General contact details of provider: https://rsisinternational.org/journals/ijriss/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.