Risks in Non-price Bottom Bidding and Countermeasures

It is a conventional practice of non-price bottom bidding in international project realm.China has also implemented non-price bottom bidding since 2003.There existed some inharmonious phenomenon in the first few years, such as conspired bidding among owners and contractors or simply in contractors.It is these non-market oriented behavior that demolishes orders of construction market.A prime reason to such condition lies in opposite pay-off expectations of stakeholders in bidding game.By analyzing cost drivers of lower-than-cost-price bidding it presents that lower-than-cost-price bidding may not definitely harmful for projects while current bidding evaluation cannot prevent disguised conspired bidding completely.Based on analyses it offers some suggestions for consummating non-price bottom bidding.