Positive Interaction Evaluated Construction Based On Lowest Pricing Evaluation Method

Bidding system was introduced into China at the beginning of the 20th century. It was firstly introduced in the field of construction in the early 1980s. Since then, it has undergone three stages including piloting, preliminary establishment, and continuous improvement. The implementation of lowest pricing evaluation method (LPEM) has helped to introduce market mechanism process and boost the transparency of investment decisions, making up some drawbacks resided in existing regulation and saving remarkable amount of construction investment. However, it also generated a series of new problems. Rational low bidding price converted to the simplest, the most primitive, and absolute low price bidding, which has brought to LPEM nine challenges in three perspectives ranging from social trust, environmental acceptance and participants'fatigue. The original purpose of LPEM is anti-corruption, LPEM has been losing its designed benefit due to the lacking of social trust, Interest games amongst stakeholders constitutes the abnormal balance between participants, the lowering of return on investment, the change of bidding motive and the weakening of bidding foundation.This paper provided a systematic view on the cause and the consequence by applying LPEM, and the cause and the root of existing balance, Proposed response to the low profit of Enterprise lowest evaluation method to 3 stages theory. Based on Mechanism Design Theory, The paper aims at providing a sound framework facilitating interactive regulatory framework that is mutually beneficial. It provides explanations to the questions asked as a series of solutions.First, a rational view on the bidding purpose is called for. To have a balanced evaluation on effectiveness and efficiency with the implementation of LPEM, keep away from the waterproof by building dams of thinking, cut off the inevitable link between bidding and anti-corruption, take an objective view on capital pursuing profit, and cultivate an encouraging environment accordingly.Second,to construct incentive-compatible mechanism. This implies increasing the institutionalization of decision-making, reasonably controlling release density of project programs, relieving bidding pressure, internalizing the need of tenders, cultivating balancing powers; establishing responsible industries, allocating responsible subjects, modifying a fixed authority thinking, introducing role and responsibility structure; obtaining incentive resources creatively, integrating bidding process into the whole performance-based feedback system, linking input and output of an engineering project; investigating bottom-line cost, completing accountability mechanism, enhancing trust responsibility, and compensating honest hardworking with benefit.Third,expanding information channel, strengthening performance assessment management, establishing inspection authority, regulating information disclosure, expanding accesses, optimizing information identification, improving examination means, and accelerating information legislation.