Additionally, the percentages of unreasonablecosts obtained from the original and alternative modelsare 15.54% and 15.86%, respectively. Notably, either theoriginal or alternative models are recommended pro-vided the required languages or clauses of the tenderingdocuments have specified a particular model to be usedfor the bid evaluations.6. DiscussionsThe proposed model was demonstrated to severalindustrial practitioners and governmental officers inTaiwan. Overall, those to whom the model was demon-strated strongly praised its ability to improve currentpublic procurement practices in Taiwan. Also, duringthis investigation, the following lessons were learned. Successfully implementing the preparation step of themodel depends on all bidders submitting electronicspreadsheet files. However, submitting the bid pro-posal with an electronic file should be feasible basedon the experience learned from a preceding researchof Wang [24]. The research of Wang [24] focused onthe phase in which the project was awarded to thelowest bidder, and established an electronic-basedprocedure to support review and adjustment of theproposed unit prices of the lowest bidder. And noneof the bidders for several practical projects failed tomeet the requirement to submit an electronic file.Additionally, a Taiwanese administrative order hassuggested that a public construction project with abudget exceeding NT $50,000,000 (US $1,666,667)be procured by forcing the bidders to submit theircost estimates in electronic format, further increasingthe feasibility of using an electronic-facilitated bidevaluation process [24]. The tendering documentation should explicitly con-tain language or clauses to force the legal executionof the evaluation process. For example, the languageshould include the requirement to submit an elec-tronic file with a fulfilled unit price for each cost item,the steps of evaluating a lowest bid, and the explicitvalues of r1, r2 and TR. The committee members entrusted with reviewing theexplanations/evidence of the lowest bidder should becarefully selected. Besides the representatives fromthe architect/engineer of the project, the outsideexperts and union representatives should be consid-ered as members of the committee. Moreover, audit-ing officers should be formally invited to witness theevaluation process for purposes of declaring it fairand open. Furthermore, the reasons for accepting/rejecting aunit price are suggested to be publicized to enablethe evaluation experience (similar to historical courtcases) to be applied to future projects. The records (including the explanations and evidenceprovided by the bidder) of those bid evaluation meet-ings should constitute part of the contractual docu-ments, legalizing the model results. The proposed model can inspire bidders to recognizethe benefits of submitting accurate estimates, eventu-ally improving their estimation skills. The time required to evaluate the lowest bid shouldbe sufficient to execute the model steps. Based onthe experience of Wang [24], the time period may be14–21 calendar days depending on the number of pro-ject cost items involved. Moreover, during this per-iod, the preparation step typically takes 2–3 days,the evaluation step takes 2–4 days, and the clarifica-tion step takes 10 to 14 days. One method of shortening the evaluation time is toreduce the number of cost items requiring evaluation.For example, the 1619 cost items in the electrical sub-project can be reduced to only include certain signif-icant cost items that mostly govern project quality. Ifthose significant unit prices are evaluated as beingreasonable, the potential adverse impact of a lowbid can be limited. Typical significant cost itemsmay include: (1) structure related (for example pilingand steel materials); (2) quality-related (for exampleinspector fees, laboratory fees, and drawing composi-tion fees); (3) governmental regulation-related (forexample environmental protection fees, waste dirtdumping fees, and construction insurance fees); andequipment-related (for example chiller, processexhaust system, heating, ventilation and air condi-tioning, and fire protection system). Therefore,instead of preparing a long list of cost items in the electronic file, a short list containing only the signifi-cant cost items can be used. Notably, the total bidprice (TBP ) in Eq. (2) should then be replaced withthe sum of the costs of these significant items.
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