Abstract
Given the current severe fiscal situation, ministries, agencies, and local governments are working hard to implement procurement reforms that will not hinder the planned implementation of projects or the effects of investment, and that will reduce expenditures. The purpose of this study is to clarify the role and necessity of flexible target prices (maximum bid limit prices) for government procurement in which this business is carried out in the form of a contract for value, and to find the requirements to ensure this elasticity. In this study, we consider the flexible target price (maximum bid limit price) in order to proceed the contract conclusion systematically from the viewpoint of cost accounting. From the budget formulation stage to the flexible target price (maximum bid limit price), we extracted issues related to the calculation of flexible target price (maximum bid limit price) in response to changes in the amount required to realize the project , and derived a conclusion on the flexible target price (maximum bid limit price) . The structure of this paper is as follows. 1st chapter is introduction. 2st chapter is issue and hypothesis. 3rd chapter is prior research review. 4th chapter is case study. 5th chapter summarizes the issues from the case study and confirms the need for flexible target pricing. 6th chapter is conclusion. As a result of the study, it was confirmed that in order to realize contract conclusion in a planned manner, a certain degree of flexibility must be given to the flexible target price (maximum bid limit price), and requirements for that purpose were arranged.
