Study on the Conditions for setting Target Prices in Japanese Grant Aid Projects

Abstract Japan has been implementing grant aid projects for developing countries many years, but in recent have experienced unsuccessful bidding (i.e., all bid prices are higher than the target price), due to a gap between project price and price. For public works contracts Japan, may not be signed more under any circumstances. Therefore, if exceeds price, tender cannot completed. The estimation method used Japanese uses standards developed domestic construction with some modifications overseas projects, it is possible fully include cost of following risks price; therefore, difference assumed occur. as reference so that final contract exceed instead, including upfront cost, maximum project. In this way, rate bids bilateral decrease discrepancy disappear.