Research On The Social Cost Of Tendering And Bidding In Construction Engineering

Tendering & bidding is the major transaction method in the construction engineering market. Its positive function on improving economy order and promoting investment benefit has been realized by people. However, its social cost has not attached enough recognition meanwhile. In this era of reformation, the phenomenon of high social cost caused by the disordered transaction in the construction market put the problem into attention gradually. Research on the social cost of tendering & bidding in construction engineering becomes a requirement of the era which calls for promoting the efficiency of resource configuration, establishing the economized society and setting the pace on sustainable development strategy.The present dissertation makes a systemic research on this subject, which is consisted of these parts below:Firstly, by use of the classic social cost theory for reference, this paper puts forward the definition of social cost of tendering & bidding in construction engineering, and sets up its system info combining with the feature of tendering & bidding. Then, it expatiates the contents, causations, cost characteristics and payment ways respectively. Furthermore, the effective and noneffective social cost are demarcated, their influence upon the system and the society are analyzed.Secondly, the dissertation analyses the institution cost which occurred in carrying out the tendering & bidding of construction engineering favorably, and the transaction cost which paid by both the tenderer and the bidder during the bargaining process.Thirdly, by means of questionnaire investigation, the dissertation finds out the bidding situation in current construction market. Indexes obtained from the questionnaire such as bidding fees and successful bid ratio offer a demonstrable support to quantify the transaction cost of tendering & bidding. Based on the investigation data, the grey incidence analysis of the factors affecting successful bid ratio is made by employing grey system theory, the result reveals the relation between the successful bid ratio and the factors affecting it. A quantitative connection between cost ratio per bidding and successful bid ratio is also set up.Fourthly, this article analyses the marginal utility to the tenderer and bidder affected by the number of bidders, and sets forth the relationships among bidding costs, bidding benefits and the number of bidders.Finally, the dissertation researches the social cost under different tendering and contract modes, which provides the theory support to promote the tendering & bidding system and standardize the construction market actions.The demonstration research in this dissertation was carried through based on the Nanjng Metro project and Nanjing Hexi new district developing project.