• Title/Summary/Keyword: Best-Value Bid System

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A Study on the Evaluation System for Bidders to According to the Best Value Bid System by Technology Proposal Method (기술제안방식의 최고가치낙찰제도 입찰자 평가체계에 관한 연구)

  • Yeo, Sang-Ku;Lee, Gun;Lee, Hyun-Chul;Go, Seong-Seok
    • Proceeding of Spring/Autumn Annual Conference of KHA
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    • 2009.04a
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    • pp.211-216
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    • 2009
  • Bidding systems in the domestic public construction work have been amended many times since the lowest-bidding system was implemented in 1951. However, this hasn't had much success. Competition in technical development among companies has declined as the contracts for buildings are given to company which submits the lowest price without considering traits of projects. In addition, as the construction market turns to the limitless competition system due to FTA(Free Trade Agreement), advanced techniques are needed to promote the national competitive power. Considering the needs of the times, Korean government announced that "Best Value Contract (Design-Bid-Build)" and "Bridging Contracts (Design-Build)" are included to 4 existing bidding systems in October 2007. Thus this study aims to suggest devised the evaluation criteria including major items for evaluating bidders, in order to establish and revitalize the best-value bid system successfully.

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Whole Life Performance Bid Evaluation in the Korean Public Sector

  • Park, Kenneth Sungho;Lim, Hyoung-Chul
    • Journal of the Korea Institute of Building Construction
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    • v.12 no.6
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    • pp.682-700
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    • 2012
  • Over the last several years, Korea has increasingly adopted design-build for public construction projects. There is a much greater awareness of the need to change to a system based on 'Value for Money', which is high on the government's agenda. A whole life performance bid evaluation model is proposed to aid decision makers in the selection of a design-builder. This is based on the integration of a framework using an analytic hierarchy process, as the bid awarding system is being changed from one based on the lowest price to one based on best value over the life-cycle. Key criteria such as whole life cost, service life planning and design quality are important through the key stages of the evaluation process. The model uses a systematic and holistic approach, which enables the public sector client to make better decisions in design-builder selection, which will deliver whole life benefits based on long-term cost-effectiveness.

Project Performance Comparison Based on Different Types of Project Delivery System (사례연구 분석을 통한 발주방식별 성과비교)

  • Lee, Soo-Kyong;Jung, Young-Soo
    • Proceedings of the Korean Institute of Building Construction Conference
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    • 2011.05a
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    • pp.207-209
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    • 2011
  • Numerous reports show that alternative project delivery systems (PDSs) such as design-build (DB), construction management at risk (CMR), and design-build-maintain (DBM) are increasingly used in many countries. This study compared characteristics of each PDS (design-bid-build (DBB), DB, CMR, or DBM) by analyzing quantitative data from 9 research articles. In order to compare characteristics between DBB and alternative PDSs, the study is based on principal 3 factors - Time, Cost, and Quality. DB shows the best performance in the time part and also the cost performance depending on facility type and project size. The performance of quality has minor difference among different PDSs. These results support the fact that using an appropriate PDS by the characteristic of a project makes high value of efficiency and productivity.

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An Implementation of Optimum Tender Price Automatic Calculation System using Statistical Analysis Technique (통계분석 기법을 이용한 최적의 투찰가 자동 산출 시스템의 구현)

  • Kim, Bong-Hyun;Lee, Se-Hwan;Cho, Dong-Uk
    • The Journal of Korean Institute of Communications and Information Sciences
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    • v.33 no.11B
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    • pp.1013-1019
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    • 2008
  • Recently, various information and data are efficiently used by the rapid growth of its Internet in our real life. But, users have spent lots of time finding necessary information for the increased amounts of information. To solve this problem, it can be provided the speed, accuracy of information search with development of intelligent search engines, agent system etc. In this paper, we propose the method of getting the best tender price in the analysis of the construction bid information that needs its professionalism by on the purpose to maximize users' satisfaction. Of course, if it is not under the unit of a results in the future, we put target of this paper on part to heighten supreme successful bid success rate. Therefore, this paper embodies offered system of web based on producing tender price of most suitable through techniques to produce tender price about successful bid that compare with bidder fare by statistical analysis incidental and value approaching successful bidder fare by frequency analysis method.

Development of an Operation Model for Technical Proposal-Based Tender of Public Construction Projects (공공건설공사의 기술제안형 입찰 운영모델 개발)

  • Yu, Il-Han;Kim, Kyung-Rai
    • Korean Journal of Construction Engineering and Management
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    • v.9 no.2
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    • pp.136-145
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    • 2008
  • Recently the Ministry of Finance and Economy of Korea launched two new project delivery systems called "Best Value Contract (Design-Bid-Build)" and "Bridging Contract (Design-Build)" in October of 2007 by revising enforcement ordinances of "Act on Contracts to Which the State is a Party". These project delivery systems require the bidders to submit technical proposal adjusted to the project characteristics and objectives for selecting the contractor by evaluating technical proposals. This research aimed to suggest guideline to effectively operate the project delivery systems described above. To reach the goal of the research, the framework of the operation model was developed, which includes the four categories: the standard bidding process, the technical proposal requirements, the technical proposal evaluation criteria, and the award methods. The contents of the four categories above were fulfilled throughout conferring with the advisory experts. In particular, the award methods, which are the important decision-making factor in the perspective of the owner, consist of four types: Low Bid-Fully Qualified, Weighted Criteria, Adjusted Bid, and Adjusted Score. The quantitative features and application criteria of these four types of award methods were suggested throughout the simulation using the virtual case.

Technical Proposal based Bidding System Applying the Concept of the Lowest Total Combined Bid Price for Supplying Affordable Housing (최저통합환산가격 개념을 적용한 기술제안 기반 입찰제도)

  • Cho, Gun-Hee;Kang, Seung-Hee;Lee, Jeong-Seok;Sohn, Jeong-Rak;Bang, Jong-Dae
    • Korean Journal of Construction Engineering and Management
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    • v.11 no.2
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    • pp.94-105
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    • 2010
  • Recently, resettlement problems of low income groups in the urban regeneration area have been issued in Korea because they have no capability to purchase (or lease) redeveloped housing (or apartment). There are several approaches for supplying affordable housing and one of these is the bidding system which can reduce construction cost. However, the lowest bidding system has many problems such as dumping and substandard quality. In this context, this study proposed bidding system based on technical proposal applying the concept of the lowest total combined bid price for optimization of bid price, reduction of construction cost and period, and maintenance of suitable quality. This bidding system embraces the best value and cost plus time concept on the basis of an improved lowest price bidding system. It consists of the following components: work unit based, project unit based, and period reducing technical proposals. The proposed bidding system for determining bidders are designed to evaluate the adequacy of each technical proposal in the order of the combined minimum price in an effort to effectively optimize bid prices and reduce the construction periods, as well as to maintain a minimum appropriate quality.

Project Delivery Systems and Project Performance;An Evaluation Model for Public Construction Projects (공공건설사업의 발주방식 선정 및 성과평가 모델)

  • Yu, Il-Han;Kim, Kyung-Rai
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • 2007.11a
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    • pp.41-47
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    • 2007
  • The selection of the reasonable project delivery system (PDS) is crucial for a successful performance of a project, which means to achieve project objectives. Furthermore, the project performance has been tightly related to the selection of PDS appropriate to pertinent project characteristics. In this context, the ministry of finance and economy of Korea launched two new project delivery systems called "Best Value Contract (Design-Bid-Build)" and "Bridging Contract (Design-Build)" in October of 2007 by revising enforcement ordinances of "Act on Contracts to Which the State is a Party". For efficient operation of the new project delivery systems, this paper suggested a PDS selection model which supports decision making of the reasonable PDS for a pertinent project by assessing characteristics of the public construction projects, both quantitatively and qualitatively. In addition, a PDS performance evaluation model was proposed in order to get feedback on the result of the PDS selection and the operation for the succeeding project. The standard models suggested in this paper might be used as a tool to support the decision making of the public organizations.

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A Selection Model of Suitable Tendering System for Public Construction Projects (공공건설공사의 최적 입찰방식 선정모델)

  • Yu, Il-Han;Kim, Kyung-Rai
    • Korean Journal of Construction Engineering and Management
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    • v.9 no.3
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    • pp.164-174
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    • 2008
  • It is crucial In decision making to select a project delivery system (PDS) adjusted accordingly to the project characteristics. Furthermore, selecting a tendering system is the kernel in the process of selecting PDS. In October 2007, the Ministry of Finance and the Economy of Korea launched two new project delivery systems, "Best Value Contract (Design-Bid-Build)" and "Bridging Contracts (Design-Build)" by revising enforcement ordinances of "Act on Contracts to Which the State is a Party" to provoke the tendering systems. In order to support the proposed purpose, this research developed a selection model for suitable tendering system, which helps a public owner select a tendering system appropriate to the project characteristics. First, the framework of the model was set throughout analyzing previous researches and interviewing relevant experts. Additionally, by analyzing the survey result from 265 experts engaged in architectural and civil engineering business, the relative weights of the selection factors and the effectiveness values of the alternatives were suggested as the quantitative evaluation references. Finally, the practical guideline was suggested to apply this model to three public projects scheduled to be delivered. The result of applying the model to three case projects showed that further researches were needed to make the selection process logical and to suggest the standard weights and effectiveness values according to project type.