• International conference on construction engineering and project management
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• 2009.05a
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• pp.1433-1439
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• 2009

Best value is the ultimate goal of the owner and can thus have diverse meanings according to the project characteristic, owner's purpose, user groups' payment capability, etc.. Recently, resettlement problems of the marginalized members in the urban regeneration area have been issued in Korea because they have no capability to purchase (or lease) redeveloped housing (or apartment). It means that a minimized production cost for reducing supply price of housing is a key factor in establishing the best value of the marginalized members. The lowest-price bidding system serves the purpose of ensuring a minimized production cost, but due to the low-cost investments, it creates various problems, such as sloppy construction, lowered quality, an increased LCC, and worsening profitability for builders. Thus, to help them resettle, it is necessary to supply affordable housing geared towards a certain appropriate quality and minimum construction costs. Towards this end, this study aimed to propose a cost reduction bidding system based on a technical proposal. The proposed technical-proposal-based cost reduction bidding system consists of the following components: work-unit-based, project-unit-based, and construction-period-reducing technical proposals. These components are evaluated to select the best bidder for a given project. The technical proposal based cost reduction bidding system proposed herein is expected to provide facilities with appropriate supply prices and appropriate quality levels, to bolster the technological competitiveness of builders.

• Journal of Industrial Convergence
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• v.20 no.5
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• pp.1-9
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• 2022

Today, apartment houses account for a very high proportion of the types of residence. This study analyzed the difference between the bidding construction cost using the long-term repair allowance and using the general repair cost, and analyzed the difference of factors affecting the amount of use of these two items. For this purpose, related data on apartment housing complexes located in seven representative districts of Busan from 2017 to 2021 were collected and analyzed from the apartment housing management information system. As a result of statistical analysis, the type of bidding variable had the greatest negative(-) effect on the bidding construction cost, and the next factor that affected was different between the amount of long-term repair allowance used and general repair cost used. In addition, there was a difference in statistical significance in the type of bidding by construction year for the number of bidding works between the case of using the long-term repair allowance and the case of using the general repair cost. The results of this analysis will help to find ways to reduce bidding construction costs. However, it is expected to find additional meaning by including more detailed variables such as technical ability.

• International conference on construction engineering and project management
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• 2013.01a
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• pp.479-487
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• 2013

State Highway Agencies (SHAs) have started utilizing cost-plus-time bidding (A+B bidding) since Federal Highway Agency (FHWA) declared it operational on May 4, 1995. Although this technique has successfully accelerated many projects by incorporating construction time in the bidding competition, a framework to illustrate the interactions of incentive/disincentive (I/D) rates on the competitiveness of contractors participating in the bid competition is yet to be developed. In a previous research, authors indicated that for each bid competition there is an efficient cap for I/D rates which are dictated by the capabilities of contractors in project acceleration. However, the results of previous study were based on the assumption that there is a statistically significant relationship between cost and time. In this study, the entire cost-plus-time projects implemented by the Oklahoma Department of Transportation (ODOT) were investigated. Then the significance of relationship between cost and time were analyzed for each contractor utilizing Analysis of Variance (ANOVA) technique, and the price-time function of each contractor was determined by regression analysis. The results of the analysis indicate that there is a significant relationship between cost and time for the majority of contractors. However, a quadratic relationship is not always significant and for some contractors a linear price-time relationship is significant. The results of this project can be used not only by ODOT to optimize the incentive/disincentive rates but also by contractors to determine the most competitive strategies of other bid participants.

• Journal of the Korea Institute of Building Construction
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• v.8 no.1
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• pp.97-102
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• 2008

The report of the Korean Board of Audit and Inspection(BAI) on May 2007 indicates the problems of Life Cycle Cost (LCC) analysis and evaluation in the Design-Build(Turn-Key) and alternative bidding system. The point which the report indicates is that the cost estimation system for LCC analysis has nothing in common each other and there's no consistency among the repair cycle and ratio per facilities parts. For solving these problems, BAI demands the establishment of the guidelines for LCC analysis and evaluation from the competent authority Korean Ministry of Construction And Transportation(MOCT). The objective of this study is to develop the improvement directions for LCC analysis and evaluation which are suitable to the public construction projects especially for the Design-Build and alternative bidding system in Korea. For this study, the LCC related raws and regulations, LCC analysis guidelines of public cooperations, actual condition of LCC analysis and evaluation which include, the elements of LCC, the estimation rules of the initial cost and the maintenance cost, the analysis standards of time value of money, etc. are investigated to provide the improvement directions for LCC analysis and evaluation.

• Architectural research
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• v.13 no.3
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• pp.49-56
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• 2011

Competitive bidding in construction is concerned with contractors making strategic decisions in respect of determination of bid price if contractors opt to bid. This study presents a strategy model for deciding optimum tender price with reflecting appropriate profit in competitive bidding using Bayesian regression analysis (BRA). The purpose of the developed model is to help contractors to secure suitable profitability by predicting the actual profit based on key variables. They may affect construction cost at bidding phase, ultimately which help contractors to secure high quality output. The model was tested empirically by application to a bidding dataset collected from a large South Korea contractor. BRA allows contractors to estimate more accurate actual profit by reflecting not only objective information but also subjective experiences and judgments. Consequently, the model can contribute to improvement of decision-making process for setting an optimum tender price.

• International conference on construction engineering and project management
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• 2005.10a
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• pp.417-423
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• 2005

Contractor's opportunistic bidding behavior refers to contractor's deliberate low-bid, which cannot accord with the cost, and expectation for beyond-contractual reward (BCR), the compensation earned through cutting corners or claims after undertaking the construction project. This research applies System Dynamics to develop a model of contractor's pricing with consideration for dimensions of "cost", "market competition", and "BCR". Iterative computer simulations were performed to analyze the effects of contractor's pricing on the market price. The results were then examined by statistical analysis on data collected from 44 highway projects in Taiwan. It is found that the critical force driving the contractors to bid opportunistically is their excessive expectations in BCR under the current environment. Within the price competition mechanism, if the problem of BCR exists, even if the bidding system is further improved, contractors would still prefer opportunistic bidding behavior, and eventually make the whole construction industry operate ineffectively. Therefore, it is crucial to remedy the aforementioned BCR problem by more effective management policy.

• Proceedings of the Korean Institute of Building Construction Conference
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• 2023.05a
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• pp.163-164
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• 2023

The technical proposal bidding system emphasizes the evaluation of the construction company's technical capabilities, with the aim of improving the quality and cost-effectiveness of the construction. However, in the VE analysis and proposal process for technical proposal bidding, the ideas are often reused from similar past construction projects, and the application of new construction technologies/methods is often lacking. Therefore, this study proposes a methodology for managing VE proposal information by integrating it into a BIM model using parametric modeling. This research developed database based on the existing VE proposals and new construction technology/method information from the Korea Institute of Civil Engineering and Building Technology. And by using parametric modeling, the proposed method integrate the VE database with BIM model. The methodology proposed in this study is expected to improve the reliability and effectiveness of VE-related idea proposals in technical proposal bidding.

• Korean Journal of Construction Engineering and Management
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• v.4 no.4 s.16
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• pp.192-200
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• 2003

The object of this research is to develop a computerized algorithm of cost estimation method to forecast the total construction cost in the bidding stage by the historical and elemental work cost data. Traditional cost models to prepare Bill of Quantities in the korea construction industry since 1970 are not helpful to forecast the project total cost in the bidding stage because the BOQ is always constant data according to the design factors of a particular project. On the contrary, statistical models can provide cost quicker and more reliable than traditional ones if the collected cost data are sufficient enough to analyze the trends of the variables. The estimation system considers non-deterministic methods which referred to as the 'Monte Carlo simulation. The method interprets cost data to generate a probabilistic distribution for total costs from the deficient elemental experience cost distribution.

• Korean Journal of Construction Engineering and Management
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• v.2 no.3 s.7
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• pp.75-82
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• 2001

Traditional bidding process and activities in public construction area has many problems in terms of the clearness and fairness of administration. And, it causes many cost consumption to suppliers. As part of the efforts to solve these problems, some public institutions developed the electronic bidding systems. But these systems have still problems in diverse aspects. Therefore, the purpose of this study is to analyze current bidding systems through literature survey, case study and process mapping methodology, to compare the result of the analysis with the developed electronic bidding systems and to suggest the improvement for the coming bidding systems. As results of this study, key processes and classified contract types about public construction bidding were identified. These can be applied by means of guidelines when public institutions are planning new electronic bidding systems. The composition of unified driving organization, the database development for information share and the standardization of national level for the new electronic bidding systems were also suggested.

• Proceedings of the Korean Institute Of Construction Engineering and Management
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• autumn
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• pp.131-138
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• 2002

Traditional bidding process and activities in public construction area has many problems in terms of the clearness and fairness of administration. And, it causes many cost consumption to suppliers. As part of the efforts to solve these problems, some public institutions developed the electronic bidding systems. But these systems have still problems in diverse aspects. Therefore, the purpose of this study is to analyze current bidding systems through literature survey and questionnaire, to compare the result of the analysis with the developed electronic bidding systems and to suggest the improvement for the coming bidding systems.