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1、Analysis of the Asymmetric Situation in the Process of Tendering & Bidding and Strategies Choices for The Owner & The TendererAbstract-The tendering and bidding process is the key step in forming the co-operative relationship in project constructionAs one of the most important process of constructio
2、n, bidding is carried on an asymmetric situationFrom the view of the Tenderer,the asymmetric information can be considered as unreplied or unexpressed contract systemHowever，from the view of the Owner， it is the measurement taken by the Tenderer corresponding to his bidding documents, but unbeknown
3、to himThis Asymmetric Situation has great effect of the process of co oject, and to treat and adjust the situation reasonably will be a key problemHerefrom different views, we discussed the asymmetric information situation and gave some advice to bothBoth the owner and the Tenderer can take some mea
4、sures to make up for the asymmetrical information so as to guarantee the smooth undertaking of the business and realize the interest aims of each partiesKeywords Construction Bidding Asymmetric Information Implied Contract1. INTRODUCTIONThe tendering and bidding process is the key step in forming th
5、e co-operative relationship in project constructionDuring the tendering and bidding，the Owner proposes the aim，requirement and the mode of co-operation and expresses them in the form of tendering documents and contractsIn response to the demands of the Owner, the Tenderer puts forward correspondent
6、aim and promise based on its evaluation of the projectThe co-operation o f the two parties of the construction is reflected and regulated through contracts and the Owner and Tenderer exchange information and establish contracts during the tendering and bidding processHowever, the exchange of informa
7、tion is neither complete nor symmetrical and the Owner constructs an asymmetrical information platform for the Tenderers while the Tenderer also takes some corresponding measures.2 THE ASYMMETRIC SITUATlON OFTHE OWNER AND THE TENDERERAThe information platform of the OwnerThe Owner constructs the inf
8、ormation platform around the contracts，including stated contract(or expressed contract /conditions)and implied contract (or unexpressed contractconditions)The stated contract which is provided by the Owner is the document consisted of contract terms and conditions as the rules and regulations in the
9、 co-operation of the project constructionIt signifies the management system and procedure of the project as well as the way of solving the problems arising during the constructionThe stated contact is specified in the text and terms of the construction contractGenerally speaking，the format of this d
10、ocument is fixed and its sample including the notice to the Tenderer,Bill of Quantity，Drawing and 1etters etc，is circulated in the industryAll these documents are stated clearly and the Tenderer can decide its own tendering strategy and price according to the informationThe certainty of the stated c
11、ontract enables the Tenderer to understand and grasp the information；therefore it is of primary importance in deciding the price of the tendering The implied contract is the part which does not appear in the stated contract, but still is accepted by the two parties and has the power of binding their
12、 behaviorFor one thing，the implied contract consists of the social, Economic,1egal and technical backgrounds of the stated contract, therefore serving as its precondition；for another, the implied contract is also the reasonable inference drawn from the stated contract under certain social，economic，l
13、egal and technological backgroundsTherefore，the implied contract is made up of two parts：the common implied contract and the inferred contractThe common implied contract mainly refers to the relevant laws and regulations issued by the government, the conventions established by usage in this particul
14、ar industrythe technological regulations which has the legal power and the basic principles accepted in the realms of technology and economyAlthough the part mentioned above is not stated clearly and detailedly in the articles of the contract, it still constitutes the rule and regulations in the pro
15、cess of project constructionTherefore it can not be violated since both parties are clear about its existenceThe inferred contract is based on the reasonable and just inference of the stated contract and the common implied contract, therefore should be abided by during the implementation of the proj
16、ectBesides，in specific project environment，the inferred contract can serve as the basis and standard of the two partiesCompared with the common implied contract, the inferred contract is more complicated because “it is the basis and standard based on sensible inference”This poses a challenge to the professional proficiency of the person who infers and the person who judgesOnly when the two parties have simi
