An International Overview of Unbalanced Pricing under Bidding Regulations for Public Construction Projects
Publication: Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 15, Issue 2
Abstract
Unbalanced pricing in competitive bidding is a source of concern for public authorities responsible for managing the tendering stage of public work projects. This paper studies international laws governing public bidding in construction and the practice of unbalanced bidding. Regulations reviewed include those from the United States, Europe, the Middle East, Asia, Africa, and some international funding agencies. The results of our review suggest that, despite the nearly universal practice of unit price contracting, laws regulating unbalanced bidding vary widely, as do the acquaintance of the impacts of unbalanced bidding on project costs and performance issues. Even more, the awareness of many of those who recognize unbalanced pricing in their bidding regulations is limited because they address only one form of unbalanced pricing or provide protection against only one or a few of the consequences of excessive bid unbalancing. The results of our study highlight the need for reform of public bidding regulations in many jurisdictions, including adopting best practices and provisions for the regulation of unbalanced pricing so that project participants may benefit from the accumulated experience in dealing with this practice.
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Data Availability Statement
All data, models, and code generated or used during the study appear in the published article.
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Information & Authors
Information
Published In
Journal of Legal Affairs and Dispute Resolution in Engineering and Construction
Volume 15 • Issue 2 • May 2023
Copyright
© 2022 American Society of Civil Engineers.
History
Received: Feb 26, 2022
Accepted: Oct 18, 2022
Published online: Dec 22, 2022
Published in print: May 1, 2023
Discussion open until: May 22, 2023
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Cited by
- Mujahed Thneibat, Khaled Hesham Hyari, Prevention and Detection of Unbalanced Pricing in Bidding for Construction Projects: A Review, Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 10.1061/JLADAH.LADR-1200, 16, 4, (2024).
- Khaled Hesham Hyari, An Owner’s Overview of Contractor’s Models for Unbalanced Bidding: Easing the Controversy over This Practice, Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 10.1061/JLADAH.LADR-1017, 16, 1, (2024).