Feasibility of Resident Involvement in Bidding Procedures for Public Works Projects

Abstract

This study explores possibility of alleviating some of the problems in the current bidding system for public works projects. For the purpose of this study, resident involvement in the bidding procedure was conducted. The "bidding procedure with resident involvement" is one approach to encouraging public discussion concerning various issues of the current bidding system. In the practice conducted in this study, local people took part in the bidding procedure for a project to improve an intersection on a national highway in a downtown area. It was thought that local residents would easily understand the details of such a small-scale project and would regard a public works project in their area as something that relates directly to them. A questionnaire survey shows that, in selecting a contractor, the residents participating in the procedure place importance on the quality of works and the reliability of execution management. They value cost-effectiveness less. In other words, the survey found that the residents' requirements were the same as the conditions required by the party placing an order for public works construction. It was also found that resident participation in the public procurement procedure helped make bidding and contracting more transparent. A questionnaire survey was also conducted on building contractors with a main office or branch offices in Hokkaido, to understand their views on resident participation in bidding. The corporate characteristics of these contractors were classified into four groups according to their firm size and attitude toward resident involvement. These characteristics were used to examine the problems inherent in the bidding system incorporating resident participation.