Abstract
In Japan, when the national or a local government orders public works, a contract official is mandated to set a threshold price, which is the upper limit of the bidding price, and a contractor who bids exceeding the price is disqualified in the bidding. This system is required by Public Accounting Act established in 1889 and was abolished in other developed countries. And it is pointed out that this system causes opportunity loss by rebidding and increase in administrative costs.
In recent years, Ministry of Land, Infrastructure, Transport and Tourism (MLIT) has been promoting the comprehensive bidding method to secure quality of the public construction. According to this method, the limitation condition for the remarkable rise of the bidding price is added even if the upper limit system of the threshold price is abolished, because a successful bidder is decided by the bidding price and its technical evaluation point.
In this study, a simulation model which incorporates the decision process of bidding price in the comprehensive bidding evaluation method was developed and the paper quantitatively investigated the situations in budget management and a change of the technical level of the successful bid company providing the upper limit restriction of the planned price is abolished.
