THE PROFIT MARGIN REQUIRED BY THE INTERIOR CONTRACTOR AND THE IMPORTANCE OF CONTRACT CONDITIONS

Abstract

This research surveyed the profit margin required by interior contractors. The data were collected from a sample group of 118 interior contractors, who worked for Central Pattana Public Company Limited, between September 2020 and December 2020. The results showed that the average profit margin required by the interior contractors was 53.39 percent. The lowest rate was 20.00 percent while the highest rate was 90.00 percent. The median and the mode were 55.00 and 60.00 percent, respectively. The test of relationship between 15 characteristics of a business and the profit margin required by the interior contractors revealed that the price review person’s experience in interior work was the only characteristic that showed a statistically significant relationship. Additionally, this research analyzed the rankings of importance of seven contract conditions from the interior contractor’s perspective. The findings of the interior contractor’s rankings of each contract condition ranked from the highest to the lowest were as follows: 1) receiving 30 percent advance payment of the total work value (30 percent deduction from the installment charges), 2) no 5 percent profit margin reduction, 3) decreased frequency of installment money withdrawal from 30 to 14 days, 4) decreased duration of payment from 30 to 14 days, 5) adjustment of 5 percent retention refund condition from 12 months to 3 months, 6) adjustment of rate of liquidate damage from 0.10 percent per day to 0.01 percent per day, and 7) adjustment of correction period during warranty from having to finish within 7 days after notice to 15 days after notice.