Abstract
Japan Civil Engineering Contractors Association published a statement titled “Setting up to tendering and procurement system substantiates transparency” in April 2006. The content of this statement was to move out from antisocial activities such as engaging in bid rigging etc. By this statement published, the construction industry in Japan had changed its basic philosophy from “mutual support” to “fair competitiveness”. However, the fast out-coming was offering low prices in tenderings. The many tender prices offered by contractors were quite low compared of Owner's estimate and public sectors made contract with contractors. This was not abnormal situation but public sectors started to apply a coefficient that was figured out the contract amount divided by the owner's estimate to additional cost claims from the contractor. This paper is discussing about the problem regarding applying the coefficient.
