Research on the Social Cost of Tendering and Bidding in Construction Engineering
As a mature means of transactions in the marketplace, bid invitation and bid submission help to improve the economic order maintenance and benefit from investment. Meanwhile, their efficiency gets poorer and the social costs become unbearably high. As a result, the modern era calls for a conservation society where resources are efficiently allocated and strategies are implemented for sustainable growth when it comes to bid invitation and submission for construction engineering projects. This paper studies the peculiarity of inviting and submitting bids for construction projects; our research starts from studying the features of that process, gives definition on its social costs, and probes further into one of its players, namely, apart from both parties, other social departments are involved in its costs of rules and regulations plus the expenses that have to be covered in the process of transactions between both parties. This essay studies the different impact of the following costs on the total costs when bids are invited in various ways: the costs incurred from rules and regulations regarding bid invitation and submission, the costs of transactions, and the credential preview procedure. We reach the conclusion that it is cost effective to publicly invite bids through credential preview as it serves to safeguard the interest and the benefit, and based on that, it can improve operational efficiency and avoid unnecessary social waste when rules and regulations are enforced. When social cost is effectively lowered, to a certain extent, it serves as a guide for the actual bid invitation and submission practice. Our research also bears practical significance to improve the overall competitiveness of the whole construction industry as China carries out reforms and transformation of this industry into an intensive and energy efficient sector.
construction engineering tendering and bidding transaction cost social cost institution cost
YANG Xiaozhuang
School of Construction and Refrigeration,Harbin University of Commerce, Harbin, China 150001
国际会议
2009 International Conference on Construction & Real Estate Management(2009建设与房地产管理国际会议)
北京
英文
61-64
2009-11-05（万方平台首次上网日期，不代表论文的发表时间）