Bidding System For Government Procurement Of Construction Research

If we do government works procurement by bidding, we can controlthe amount of capital investment, prevent corruption, and promote theefficiency of investment. But we should do something to make thebidding do its work. First, we should make the bidder have the propertyof market, that is, the bidder should try to minimum the cost ofprocurement, thus he have the enthusiasm to select the qualifiedcontractor who ask for the lowerst price. Second, the blenders muststrictly obey the rules of market competition. Finally, there should be fairand impartial mechanism to deal with the dispute between the bidder andblenders. The three terms are the mainly terms which make the biddinginstitution conform to the standard. We needn't worry about the threeterms when a private make purchase by bidding, because he can get thewhole advantage from the bidding, so he will try to supervise the blendersto obey the rules, and they will deal with their disputes by consult,otherwise, they can't do the business to get advantage from it. It will be different for the government works procurement. On onehand, the purchase officials of government works are not the owners, theycan't get the whole advantage from the bidding. On the other hand, if thepurchase officials gang up with the contractors, they will get moreadvantage by avoiding or making a false bidding. In theory, we knowbidding will do good to government works procurement, but in actually, ifthere is no safeguard, the bidding will not do its business fully. In the 80years of last century, our country began to adopt bidding inbuilding works, it economize the expenditure of our country. But there arealso many problems such as avoiding or making false bidding, etc. Thoseproblems makes bidding can't do its work fully. Although THE LAW OFBIDDING go into effect from January, 1st, 2000, which reduced thoseproblems, its affection is still not very good. The main reason is the imperfect and non-coordinate institution. Theinstitution can do its work well only because it is perfect and coordinatewith other institution. If we want to create or introduce a new institution,but it is not coordinate with the old ones, then it can't take effect. Thebidding institution was draw from the developed countries. Which otherinstitution should it be coordinate with? How do the coordinate institutiontake effect? Peoples of our country pay more attention to humansympathy than legality, then what shall we do to make use of thisinstitution according to the condition of our country? All these questionsshould be study deeply. The documents about bidding are mainly about the bidding'sprocedure and theories, or the construction bidding mechanism in theeconomic transitional period of our country. But, they did not use thetheory framework of principle and agency, the theory of institutionaleconomics, game theory to study the bidding institution systematically.So they can't answer those questions well. This dissertation will study these questions deeply. The dissertationdifferentiates the principle and agency into two types, and put the biddinginstitution into the whole procedure of government purchasing to study.The dissertation compares the bidding institution among differentcountries, and studies the collusion in the bidding of governmentprocurement. Finally, by using the game theory, and according to the conditions ofour country, the dissertation gives out the reason of institution creating of"alarm supervision", that is, asking the bidder to handling of Bidder'sBond, which is opposite of the Bid Bond.