• Title/Summary/Keyword: Design-Build Bidding

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Improvement of the Design-Build Bidding in the Domestic Construction Industry (국내 설계시공일괄입찰방식 개선방안)

  • Kim Su-Hyun;Jeon Min-Jeong;Koo Kyo-Jin;Hyun Chang-Taek
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • autumn
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    • pp.410-413
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    • 2003
  • In order to build up competitive power in construction market and to cope with international policy, Design-Build bidding is one of the viable bidding system, encouraging collaboration between design office and building construction firm. Design-Build is a promising delivery system to help expediting schedules, saving costs, and improving Quality. However, the problems of Design-Build project in the domestic construction industry are not to be able to take advantages of fast-tracking and value engineering process, because of the problems of inappropriate system and participants' inexperience. The purpose of this study is to suggest alternatives for Design-Build bidding of public sector in the domestic construction industry in the costs, quality and time aspect.

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Analysis of the Influence of Design Score and Price Score for Design Build Bidding (설계시공일괄입찰에서 설계점수와 가격점수의 영향력 분석)

  • Lee, Jinhak;Woo, Sungkwon;Lee, Siwook
    • Korean Journal of Construction Engineering and Management
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    • v.24 no.5
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    • pp.44-51
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    • 2023
  • Selecting appropriate bidding system in construction projects considering the characteristic of project can be a make-or-break element, so the understanding for bidding system of public construction projects is ever more important from the perspective of both the owner and the contractor. The design-build bidding is commonly referred to as turnkey in Korea, and is a bidding method that is often applied to large public construction projects because it allows new technologies to be applied to the design and facilitates risk management for the owner. In this bidding method, there are only two factors (design score and price score) that affect the selection of the winning bidder, so it is important to understand the influence of each factor, but there is little research on the subject. This study aims to provide a basis for establishing bidding strategies for understanding the influence between design score and price score by analyzing various design-build bidding data of public construction projects. The results of the study show that design score is the factor that has more influence on the ranking of bidders in all three weighted evaluation methods: design-emphasized, price-emphasized, and equalized evaluation. In addition, we found that the correlation between design and price scores was not significant due to the unique bid evaluation structure in Korea.

Improvement Directions for Life Cycle Cost Analysis and Evaluation in the Design-Build and Alternative Bidding Projects (설계.시공일괄입찰공사 및 대안입찰공사의 생애주기비용 분석 및 평가체계 개선방향)

  • Kang, Tai-Kyung;Lee, Yoo-Sub
    • 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.

Detecting Red-Flag Bidding Patterns in Low-Bid Procurement for Highway Projects with Pattern Mining

  • Le, Chau;Nguyen, Trang;Le, Tuyen
    • International conference on construction engineering and project management
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    • 2022.06a
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    • pp.11-17
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    • 2022
  • Design-bid-build (DBB) is the most common project delivery method among highway projects. State Highway Agencies (SHAs) usually apply a low-bid approach to select contractors for their DBB projects. In this approach, the Federal Highway Agency suggests SHAs heighten contractors' competition to lower bid prices. However, these attempts may become ineffective due to collusive bidding arrangements among certain contractors. One common strategy is the rotation of winning bidders of a group of contractors who bid on many of the same projects. These arrangements may also be specific to a particular region or vary in time. Despite the practices' adverse effects on bidding outcomes, an effective model to detect red-flag bidding patterns is lacking. This study fills the gap by proposing a novel framework that utilizes pattern mining techniques and statistical tests for unusual pattern detection. A case study with historical data from an SHA is conducted to illustrate the proposed framework.

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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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Application of Incentive on Design VE to Public Design-Build Projects (공공부문 설계시공일괄사업의 설계VE 인센티브 적용방안)

  • Lee, Hun-Woo;Jung, Jae-Hoon;Kim, Hae-Gon;Koo, Kyo-Jin;Hyun, Chang-Taek
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • 2006.11a
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    • pp.284-288
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    • 2006
  • Ministry of Construction & Transportation prescribes that all of the construction works including Design-Build whose cost more than then billion won must be applied VE at the design phase. It is difficult to apply VE at the design development phase to design-build projects under current design-build contract because design should be proceeded with fixed price by bidding. Therefore the present study suggests an application of incentive which can maximize the effectiveness of design VE in design-build projects after analysing current design-build's characteristics and difficulties of design VE application.

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Competitive Bidding System and Rate Design for IPP Projects (IPP 입찰평가와 도매전력요금 결정방향)

  • Rhee, C.H.;Kim, C.S.;Kwun, Y.H.
    • Proceedings of the KIEE Conference
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    • 1995.07b
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    • pp.535-539
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    • 1995
  • In recent years, electric industries in many countries confront with a structural change in business and socio-economic environments. Since 1984, PUC and utilities in U.S.A. have adopted or developing competitive bidding systems, and this new procurement programs prevailing and restructuring the power markets. In Korea, government and the Korea Electric Power Corporation (KEPCO) invited the private sector to build and operate two 500 MW coal plants and two 400 MW LNG plants during 2001 - 2004. The plan also specifies basic concepts and conditions for the IPP projects such that new IPPs are selected through competitive bidding system with the purchased power price based on the avoided cost. In this study, the direction, guideline and scoring methods to Korean IPP bidding system are presented. Also, as a benchmark price and rates for purchased power, the avoided cost calculation models are developed, this study may contribute for the development of private power in Korea, and improve overall economic efficiencies of whole electric power sector.

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Application of Partnering to Design VE to Public Design-Build Projects (공공부문 일괄입찰사업의 설계VE 파트너링 활용방안)

  • Kim, Hae-Gon;Um, Ik-Jun;Koo, Kyo-Jin;Hyun, Chang-Taek
    • Korean Journal of Construction Engineering and Management
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    • v.7 no.1 s.29
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    • pp.110-118
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    • 2006
  • Current design-build contract is the type of joint venture, but performs by separate party which causes change orders due to the lack of communication between design and construction, so it cannot lead the main object which is the integration of design and construction. Furthermore, the current design-build contract is impossible to reduce the project costs by VE at the design development phase because the design proceeds with the fixed price through bidding. Like these limitless, the analysis results of the case of VE in the design-build projects, several problems that are prevented from active design VE are elicited by the project participants. Meanwhile, Ministry of Construction & Transportation decided to enlarge the VE review system lately. Therefore, in this study, it presented model of design VE partnering of design-build and partnering agreements form to apply design VE and to try to be able to lead the design VE to be more successful in public design-build projects.

Estimation Method of the Competitive Bid-price in Bid-rigging of Public Construction (기댓값 분석에 따른 공공공사 입찰담합의 가상경쟁가격 산정방법)

  • Jeong, Kichang;Kim, Wooram;Kim, Namjoon;Lee, Jaeseob
    • Korean Journal of Construction Engineering and Management
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    • v.19 no.3
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    • pp.52-60
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    • 2018
  • Korea's public construction projects are under construction through bidding, however, due to the nature of the bidding, collusion between participants can occur. The collusion of bids accordingly damages the client. So, it is necessary to calculate the appropriate fictitious competition price to compensate for this. In this regard, econometrics methods are generally used, but there are limitations and issues arising from the nature of construction, especially design-build bid. Therefore, this study proposes a method to estimate reasonable competitive bid-price in design-build bid. It derives the lowest bid-price from the design submitted by the proponent and estimates the competitive bid-price by examining the factors according to the penetration rate according to the technical level of the tester, the skill level of the competitor, and the type of tester. Based on the method proposed in this study, a reasonable price can be derived that reflects the characteristics of the design and construction bidding bidder selection method and also it can be used as a reference material in the actual bidding process as well as calculating the damage due to the answer.

The Investigation and Performance Assessment of the Design-Build Projects in Korea (국내 턴키/대안공사 실태조사를 통한 턴키/대안 입찰제도의 성과 분석)

  • Kim Sun-Hee;Kim Du Yeon;Park Sang Hyuk;Yeom Sang Min;Chae Myung Jin;Han Seung Heon
    • Proceedings of the Korean Institute Of Construction Engineering and Management
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    • 2004.11a
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    • pp.462-467
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    • 2004
  • Design-build, which is defined as single source responsibility for design and construction, has been widely used in large public works since governmental formulation of measure for encouraging use of design-build in 1996. However, civic groups and small and medium sized enterprises are highlighting over-competition and unbalanced market shares of conglomerate in domestic design-bid market and insisting on decrease in the use of design-build and absorption into the lowest-price bidding. This study collected information about cost, schedule, quality, new technology adoption from 51 civil design-build projects and measured their performance.

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