This study tries to specify the problems of and derive strategies for improving ``Lowest Bidding`` which is 40%, 1.5 trillion won, of public construction in 2008, The Lowest Bidding was introduced in 2003 to strengthen competitiveness of the construct...
This study tries to specify the problems of and derive strategies for improving ``Lowest Bidding`` which is 40%, 1.5 trillion won, of public construction in 2008, The Lowest Bidding was introduced in 2003 to strengthen competitiveness of the construction industry and reduce construction cost, As dumping in bidding process is intensifying, ``deliberation of low price`` is introduced and is changed to two-stage deliberation, However extraordinary competition, trust, and violation of contract caused by construction enterprenuers to receive order are occurred, Also other problems such as decreasing construction quality by low price and increasing construction cost via change-order have been always criticized, Strategies for improving the Lowest Bidding are suggested, First, it is needed to give public owner a free hand to choose bidding system, Currently it is obliged to use the Lowest Bidding is required over 30 billion won work, Second, using modifiable specification bidding method is activated by strengthening deliberation, Third, one of the main problems is that too many bidders causes extraordinary competition, Therefore, public owner should differentiate objects and standards of PQ (Pre Qualification), Fourth, examination of cost-down and administration of performance should be go the whole figure, Fifth, it is needed to increase owner``s portion, 70%, in the standard price of each construction process, Finally, minimum awarding rate for rejecting construction guarantee should be raised, The number of issuing guarantee should be more restricted based on credit level of construction firms.