COMPETITIVE TENDERING PRACTICE IN CHINESE CONSTRUCTION

In line with the economy reform program, competitive rendering methods have been introduced to the Chinese construction industry to suppleme nt and gradually replace the past assignment system for the procuremen t of construction projects. The major objectives of applying the compe titive methods are to improve the effectiveness of construction invest ment and to develop the Chinese construction market toward the interna tional procurement practice. This paper examines the development of co mpetitive tendering practices in the Chinese construction industry, pa rticularly in the more developed regions. It presents the characterist ics of the tendering practice within the special environment where the national economy system is being reformed from a purely planned syste m to a market-oriented system. Outstanding problems in the development of tendering practices have also been investigated. A constructive su rvey 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 competi tive tendering system in China.