We will try to select a material supplier utilizing the reverse auction and place a construction order by the cost-on method
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- We will try to select a material supplier utilizing the reverse auction and place a construction order by the cost-on method
November 5, 2007
East Nippon Expressway Co., Ltd.
NEXCO EAST (Chiyoda-ku, Tokyo, Chairman: Shigejiro Yagi), "Purchase of material suppliers" utilizing "bidding by auction (reverse auction)" on the Web, and the decided price and materials We will try the "cost-on method" of ordering construction by reflecting the purchaser.
On November 5, 2007 (Monday), we will post a notice of service work (recruitment of auction business trustees) for conducting a reverse auction on our website. We will inform you about the reverse auction at a later date.
Purpose of introduction
The objective is to ensure fair price competition, ensure transparency of the process leading to price determination, reduce costs, and perform efficient construction work.
System overview (see image below for reference)
- Selection of material purchaser utilizing reverse auction
- We will select the lowest price bidder as the material purchaser by utilizing the bidding method (reverse auction) by the bid method among the bidders who are recognized to be able to supply materials that meet our quality standards.
- Construction orders by cost-on method
- Designate the bid price and material purchaser determined in (1) in the construction design document. (The bid price of the material supplier is also reflected in the calculation of the contract limit price.)
- Furthermore, we will carry out the construction after concluding an agreement concerning the material procurement by our company, the material supplier, and the construction contractor.
Target construction materials (materials for reverse auction)
Road protection fence (guard rail) [Planned quantity: about 30,000 m]
Planned work to be tried (construction to order using cost-on method)
The following works scheduled to be ordered by the Hokkaido Regional Head Office will be targeted this year.
- Trans-Hokkaido Expressway Shimukappu West pavement construction (Shimukappu mura, Yufutsu-gun, Hokkaido)
- Trans-Hokkaido Expressway Shimukappu East pavement construction (Shimukappu mura, Yufutsu-gun, Hokkaido)
Reference material
Image diagram of selection of material purchaser utilizing reverse auction [PDF: 180KB]
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