Competitive Tendering Practice in Chinese Construction

Abstract

In line with the economy reform program, competitive tendering methods have been introduced to the Chinese construction industry to supplement and gradually replace the past assignment system for the procurement of construction projects. The major objectives of applying the competitive methods are to improve the effectiveness of construction investment and to develop the Chinese construction market toward the international procurement practice. This paper examines the development of competitive tendering practices in the Chinese construction industry, particularly in the more developed regions. It presents the characteristics of the tendering practice within the special environment where the national economy system is being reformed from a purely planned system to a market-oriented system. Outstanding problems in the development of tendering practices have also been investigated. A constructive survey and an in-depth discussion from Chinese academic institutions and governmental departments are used to support the analysis. The study provides a strong indication of the potential development of a competitive tendering system in China.