Study on Comparison of Bidding and Pricing Behavior Distinction between Estimate Methods
Bibliographic Information
- Other Title
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- 積算方式の違いによる入札参加・価格決定行動の比較に関する研究
- セキサン ホウシキ ノ チガイ ニ ヨル ニュウサツ サンカ ・ カカク ケッテイ コウドウ ノ ヒカク ニ カンスル ケンキュウ
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Abstract
The most characteristic trend on bidding and pricing behavior distinction in recent years is the increasing number of bidders just above the criteria for low-price bidding investigations. The contractor's markup is the difference between the bidding price and the execution price. Therefore, the contractor's markup is the difference between criteria for low-price bidding investigations price and the execution price in the public works bid in Japan. Virtually, bidder's strategies and behavior have been controlled by public engineer's budgets. Estimation and bid are inseparably linked in the Japanese public works procurement system.<br> The trial of the unit price-type estimation method begins in 2004. On another front, accumulated estimation method is one of the general methods in public works. So, there are two types of standard estimation methods in Japan. In this study, we did a statistical analysis on the bid information of civil engineering works for the Ministry of Land, Infrastructure, and Transportation in 2008. It presents several issues that bidding and pricing behavior is related to an estimation method (several estimation methods) for public works bid in Japan. The two types of standard estimation methods produce different results that number of bidders (decide on bid-no bid strategy) and distribution of bid price (decide on mark-up strategy).The comparison on the distribution of bid prices showed that the percentage of the bid concentrated on the criteria for low-price bidding investigations have had a tendency to get higher in the large-sized public works by the unit price-type estimation method, comparing with the accumulated estimation method. On one hand, the number of bidders who bids for public works estimated unit-price tends to increase significantly Public works estimated unit-price is likely to have been one of the factors for the construction companies to decide if they participate in the biddings.
Journal
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- Journal of Japan Society of Civil Engineers, Ser. F4 (Construction and Management)
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Journal of Japan Society of Civil Engineers, Ser. F4 (Construction and Management) 67 (4), I_315-I_326, 2011
Japan Society of Civil Engineers