CONSIDERATION ON THE INCORRECT COST ESTIMATION CORRESPONDING TO DESIGN FOR PUBLIC INFRASTRUCTURE PROJECTS IN LOCAL GOVERNMENTS IN JAPAN

Abstract

 Bid cancellation procedures by the incorrect cost estimation corresponding to design have been occurring in many local governments, and the facilities which should have been built are not built, and have a great influence on the public services. In addition, the incorrect cost estimation corresponding to design lead to a decrease in staff motivation. Each local government has been conducting internal investigations to prevent incorrect cost estimation. However, no local government has yet developed a firm diagnosis model and preventive measures. Particularly, there is no academic study outcome on this issue.

 In this article, the authors analyze the cause of the frequent occurrence situation of the incorrect cost estimation in local governments where the first author works and the reason why the incorrect cost estimation has become a social issue in recent years.