On oligopolistic pricing: Evidence from public construction works

1996 ◽  
Vol 24 (3) ◽  
pp. 257-257
Author(s):  
Gili Yen
Keyword(s):  
Public Construction ◽  
Construction Works ◽  
Oligopolistic Pricing

scholarly journals Concentration of Bid Prices Just Above the Standard Minimum Price in Public Construction Works

2021 ◽  
Vol 10 (3) ◽  
pp. 177-195
Author(s):  
Satoru Yamaki ◽  
Nobuyoshi Yabuki
Keyword(s):  
Public Works ◽  
Upper Limit ◽  
Evaluation Scores ◽  
Minimum Price ◽  
Bid Price ◽  
Threshold Price ◽  
Technical Evaluation ◽  
Bid Prices ◽  
Public Construction ◽  
Construction Works

In Japan, contract offices are mandated to set threshold prices for public works. A threshold price is the upper limit of the bid price, and a contractor who exceeds this threshold is disqualified. Furthermore, based on the threshold price, a minimum price is set as a price requiring investigation before acceptance. In recent years, bids and contracts for public works have generally had bid prices concentrated slightly above the standard minimum for investigation. It has been pointed out that this tendency is detrimental in terms of the motivation of engineers and social costs. In this study, we confirm that this tendency was alleviated and that the level of the winning bidder's technical evaluation score was feasible at the same time. In addition, we obtained quantitative findings on variables that affect both above. Furthermore, although it is impossible to achieve a perfect balance between alleviating the tendency of prices to concentrate slightly above the standard minimum for investigation and sufficient technical evaluation scores, elements necessary to improve the overall situation were quantitatively identified.

scholarly journals Determining The Effects Of Awarding Lowest Bid Price System On The Construction Projects Of Ethiopian Southern Nation

2022 ◽  
Vol 24 (1) ◽  
pp. 253-260
Author(s):  
Ashenafi Reta ◽  
◽  
Ashebir Alyew ◽  
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
System Construction ◽  
A Value ◽  
Maximum Value ◽  
High Incidence ◽  
Bid Price ◽  
Public Construction ◽  
Construction Works

Identifying the effects of low bid award system in construction projects can be used as benchmark to find alternative method to low bid award system in the future of construction industry. The results of questioner survey conducted to determine the effects of awarding lowest bid award system in construction projects of Ethiopian southern nation are presented in this study. Personnel from consultants, owners and contractors are among the survey`s respondent. The result of the study outlines promote transparency, avoid fraud and corruption, promoting competition amongst contractors, excessive time overrun, compromise quality and hindering profitability of contractors as the top ranked effects of low bid award system. Construction industry participants have started recognizing that accepting the least price bid does not guarantee maximum value. Achieving a value-based procurement approach is a challenge, particularly for the Pakistani public sector clients, who are limited in their ability to evaluate the competitive bids based solely on the lowest-bid award system. Persisting problems of inferior quality of constructed facilities, high incidence of claims and litigation, and frequent cost and schedule overruns have become the main features of public construction works contracts. This research was undertaken to assess the performance of public owned construction projects awarded on a lowest bidder bid awarding system.

scholarly journals Sustainable Assessment of Public Works through a Multi-Criteria Framework

2020 ◽  
Vol 12 (17) ◽  
pp. 6896
Author(s):  
Rogério Moreno Perlingeiro ◽  
Mayra Soares Pereira Lima Perlingeiro ◽  
Christine Kowal Chinelli ◽  
Elaine Garrido Vazquez ◽  
Eduardo Linhares Qualharini ◽  
...  
Keyword(s):  
Ease Of Use ◽  
Public Works ◽  
Governmental Organizations ◽  
Assessment Tasks ◽  
Assessment Systems ◽  
Practical Tool ◽  
Environmental Goals ◽  
Public Construction ◽  
Comprehensive Framework ◽  
Construction Works

Enhancing the sustainability of public works has been a key agenda in recent years for many governmental organizations. Public works contribute significantly to a large portion of engineering works and have great potential to impact the sustainability of cities. Thus, evaluating the sustainability of these projects is highly relevant, mainly regarding their impacts on environmental, social, and economic aspects. There are currently assessment systems and methods with different scopes and approaches. Yet, there remains uncertainty when it comes to considering public works’ sustainability and how useful criteria can be incorporated into the proposed assessment tasks to ensure such a goal. This study contributes to filling this gap by developing, through an extensive and detailed bibliographic research, a flexible and comprehensive framework composed of 214 criteria distributed across nine categories that measure the degree of sustainability of public works, with emphasis on economic, social and environmental goals. The proposed framework can act as a practical tool, functioning as a checklist applicable to all types of public construction works, and at any stage of the lifecycle. Evaluation of the framework by professionals indicated its suitability when encompassing sustainability objectives, its viability, and its ease of use.

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