Applications of electronically facilitated bidding model to preventing construction disputes

When a lump-sum public construction project is implemented, disputes often arise concerning issues around the accuracy of contracted quantities, the acceptability of unit prices of cost items, and whether an “equal (or equivalent)” for a product (equipment or material) can be used. In Taiwan, contracted quantities and unit prices are primarily based on owner's estimations, and the trademarks of a product specified in a tendering documentation are only for reference. A contractor has to struggle for profit when the amount of work completed differs from the contracted amount, when change orders are priced according to the owner's estimates, and when inexpensive equals may be used. This work comprehensively elaborates the background of the current practice, and presents experience of applying an electronically facilitated bidding model to evaluating the bidder's submitted quantities, unit prices and equals in several practical projects in Taiwan. Results of this study indicate that the aforementioned construction disputes can be prevented or at least mitigated.