| Title |
Identifying Factors Causing Bid-dropping in Domestic Public Work Projects and Ways of Ending Its Decline |
| Authors |
Lee, Bok-Nam ; Chang, Chul-Ki ; Lee, Young-Hwan |
| Keywords |
Public work projects ; Bid-dropping ; Lowest bidding ; the number of competitors |
| Abstract |
The contract price of successful bidders in domestic public work projects has dropped significantly under lowest biddingprocess. Furthermore, compared to the U.S. and Japan, the bids are substantially lower. The increasing trend for domesticconstruction companies to bid projects without considering markup or expected profit, with the purpose of gaining experience forfuture similar work, has contributed to the overall dumping in bid prices. The government has implemented controls in hopes ofreducing the price dropping trend but these have yet to work in the market. This study determines the level of significance of thecontract price of the successful bidder in domestic public works projects and identifies factors that cause bid-dropping bycomparing to those of the US and Japan. By mirroring advance countries’rules and regulations to prevent an abnormally lowbidder, recommendation are provided to keep unrealistically low bidders from winning the work. |