Abstract
This paper discusses (1) forms of "DANGO" (agreements among bidders of public constructon contracts to avoid competition), their legal and social backgrounds, and (2) change of "Hennmusei" in the public construction contracts. Before the second world war, clauses in the standard forms of public construction contracts provided that the owner held various discretionary powers to make rules when a dispute occured between the parties. Usually disputes were in fact settled accordingly. This characteristic of the owner-contractor relationship was called "Hennmusei".
In 1938, "The Japan Association of C vil Engineering Companies", a public service corporation, was established when Japan was under the controlled economy. The activities of this association regulating the competition in bidding brought about DANGO of present form where bidders concluded DANGO agreements under the explicit or implicit support of the contractors' organization.
In 1950, the Ministry of Construction enacted the standard form of public construction contracts. Here, the previous clauses admitting "Hannmusei" were replaced with the new clauses where a contractor stands on an equal footing with an owner. Usually, at the negotiations between the parties on the subject how a clause should be interpreted or how the contract should be altered, the owner still speaks the last word, however.
In 1900, "Simei" bidding was introduced. Under the present "Simei" bidding, an owner-an Agency of the Government-selects about ten potential contractors from an approved list and invites them for bidding. This form of bidding allows the owner to keep continuing relationship with some contractors. Owing to this relationship, it is expected that the contractor faithfully fulfill his obligation, and that both parties can easily reach agreement, when an alteration of the contract is required, This, however, facilitates the bidders to conclude the above-mentioned form of DANGO, and allows the owner to be in the favorable position on the interpretation or alteration of the contract.
