2021 Volume 77 Issue 1 Pages 228-242
Tender failure is becoming a frequent problem in the bidding/tendering process of Japan’s grant aid projects. Problems identified/recognized from review by JICA with regards to grant aid projects shows one of the reasons for such cases is the inaccuracy of the cost estimate. However, the fundamental cause of the problem has not been identified yet. This paper examines the accuracy of application of the Japa-nese estimation standard adopted by JICA to current overseas projects and observed the causes for such failures. The paper concludes that the application of the Japanese estimation standard to an overseas project may lead to underestimated project price depending on the type of construction work. However, the difference in the project cost calculated using the overseas estimation standard is not large. It is diffi-cult to enhance the accuracy of the project estimation cost unless the cost estimator perceives the norms used in actual construction work more accurately.
