Theoretical And Practice Research On Bidding Without Base Price

With the development of Chinese market-oriented economy and entering The WTO successfully, the flaw of known price invite tenders become more and more apparent, and how to improve our engineering cost management in order to adapt to the international customary practice and make the market more fair, just, well-ordered and competitive is a serious problem faced up to us. Based the information above, we put forward the study of the lowest bid approach of construction project and its application in this paper.This paper explains the value and necessity of the lowest bid approach through analyzing its academic foundation and its advantages. And then with comparing China to other countries, this paper discusses the drawbacks of implementing the lowest bid approach. In addition, we put forward the practical methods under the mode of Valuation with bill quality of construction works in China and emphasis is put on resolving the quantization problem of the reasonable low price evaluation by interval reference price method. In the end, some measures and suggestions are developed according to the problems that are likely to happen in the process of implementation and the prospect of implementing the lowest bid approach is also discussed.Practice justifies that the lowest bid approach is the optimum solution in theory. Therefore, its implementation can definitely give rise to good economic returns and social wealth.