行政院公共工程委員會

To accelerate the implementation of public construction projects, the Public Construction Commission (PCC) continues assisting procuring entities to analyze the reasons why the bid process does not result in the number or quality of responses a procuring entity was hoping for and compiles "Notices for Entities when Conducting Public Construction Procurement (NECPCP)." PCC also co-organized workshop discussion sessions with local governments to help them further understand the comprehensive response mechanism adopted by the central government on coping with labor and material shortages and construction cost inflation. According to statistics, the overall ratio of successfully awarding construction contracts has improved from 2022 to 2023. 91.41% of the construction contracts can be awarded within the second tender call. Therefore, government procurement spending can thus enter the market quickly and result in prompt implementation of construction projects.

PCC says since 2018, it has assisted in more than 340 cases through on-site visits or tender documentation review meetings and has identified the following critical factors for failed tenders:

1. Discrepancies or divergence between design and budget;
2. The entity prescribed unrealistic construction periods or unreasonable contract terms; and
3. Suppliers are overwhelmed with a boom of construction tenders.

PCC thus compiled the NECPCP and circulated official letters to require procuring entities to consider the procurement life cycle, set objectives and goals of the projects, estimate realistic construction costs and timelines through market research, and conduct pragmatic review with a responsible attitude to reduce the number of failed tenders. The earlier the public construction is completed, the sooner people can thus enjoy it.

Furthermore, to enhance the progress of public works, to effectively communicate with local front-line procurement officers, and to discuss the mechanisms adopted by the central government on failed tenders, PCC visited six special municipalities and other counties (cities) that faced severe situations of failed tenders and held total 15 briefing sessions in 2023. By exchanging in-depth empirical case studies, these sessions aimed to help procuring entities understand the policy tools, correctly and proactively conduct procurement, and reduce the occurrence of failed tenders.

According to statistics from PCC, in 2023, the ratio of public construction projects awarded within the second tender call was 91.41%, increased by 4.32% in comparison with 87.09% in 2022, achieving the best performance in the past six years (according to the Government Procurement Act, in the open tendering procedure, the opening of tenders can proceed only with three or more qualified tenders in the first tender call, and this restriction does not apply to the second tender call and thereafter). The total value of the public construction implementation budget in 2023 was approximately 653 billion NTD, and the budget execution rate reached a new peak of 96.21%, indicating efficient implementation of public construction projects.

PCC emphasizes that these achievements result from the contribution of all team members to construction projects. In the future, PCC will continue monitoring the construction tendering process conducted by the procuring entities and providing timely assistance if necessary. Expediting the implementation of public construction projects will help incubate the development potential of the country, pursue balanced regional development, and improve the quality of life for people.