Research On The Price Mechanism Of Bidding In Chinese Construction Projects

The bidding is widely used in the purchase of predominant goods and engineering consultant service all over the world. The use of bidding in the engineering is a novel measurement of economic system reformation. The bidding is a comparatively mature way to trade. In China's current construction market environment, the bidding system still have many defects, cannot exert sufficiently resource allocation efficiency. The implementation process of the public bidding system is bidding price forming process. The bidding price forming mechanism is the core of the public bidding system. Research the bidding price forming mechanism is not only necessary, but is very urgent to standardize the market operation order bid for purchase, play the positive role of bidding and achieve social resources optimization allocation. This paper based on new institutional economics and western classical economics theory, the price mechanism of bidding for construction project are analyzed systematically. The research below can be stated as follows:(1) This paper made a historical retrospect of the system of competitive bidding from its beginning to take shape in 80's to the promulgation of Law of the people's republic of china on bid invitation and bidding in 2000. Then introduces the characteristics of bidding for construction project in China, and mainly discusses the existing defects in construction project bidding.(2) Introduced the transaction cost theory and the principal-agent theory; Analyses the western classical economics theory.(3) Contrast analysis of domestic and international bidding procedures, ruled out application settings defects. The connotation of the bidding price mechanism was put forward.(4) Analyzes how the behavior of main body influent the optimal price in bidding.(5)Puts forward some reasonable countermeasures and Suggestions for improving the bidding price mechanism.