Perng, Y H and Chang, C L (2004) How does government procurement law affect bidding price competition in Taiwan? Building Research & Information, 32(6), pp. 497-509. ISSN 0961-3218
Abstract
To conform with the requirements of the international Government Procurement Agreement and the regulations of the World Trade Organization, the Taiwan Government Procurement Law (GPL) was enacted in 1999. The main points of the agreement and barriers affecting price competition are illustrated. Award prices for subcentral government civil engineering projects are compared before and after the law went into effect. The result suggests that civil engineering prices have decreased significantly since the introduction of the law, that the transparent and open-tendering system enforced by the law has led to an increase in competition, and that tender prices decreased during the initial period. During the same period, construction companies' average rate of profit on sales moved from positive to negative. It is concluded that severe bidding competition is expected after Taiwan completes accession to the agreement.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | bidding price competition; competition; construction costs; governance; government procurement agreement; market liberalization; Taiwan; tendering; World Trade Organization |
| Index terms: | regulation, construction cost, liberalization, governance, competition, tender price, construction company, Taiwan, profit, government procurement, World Trade Organization, bidding, tendering system |
| Subjects: | Geography, bidding, market analysis, economic analysis, organization, institutional frameworks, tendering, political science, financial and cost management, procurement strategy, business |
| Topics: | Research Practice, Procurement, Business Strategy, Governance, Geographical Context, Cost Management |
| Descriptive scope: | 2 PC |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here