Method for Setting the Minimum Restriction Price in Construction Contracts

We would like to inform you that the method for setting the minimum limit price in the contracting of construction work ordered by Inagi City has been revised as follows.
This will apply to construction work for which bid announcements or notifications of designation are made on or after April 1, 2022.

Target Construction

1. Contracts for construction work with an estimated price of 10 million yen or more will be subject to general competitive bidding.
2. A designated competitive bid will be conducted for a construction contract with an estimated price exceeding 1.3 million yen and less than 10 million yen.

Setting Method

The standard amount will be calculated based on the direct construction costs, common temporary costs, site management costs, and general management costs that served as the basis for estimating the planned price.

Calculation Formula (Before Revision)
(Standard Amount) = { (Direct Construction Cost) × 0.97 + (Common Temporary Cost) × 0.9 + (Site Management Cost) × 0.9 + (General Management Cost) × 0.55 } × Consumption Tax Rate

Calculation Formula (After Revision)
(Base Amount) = { (Direct Construction Cost) × 0.97 + (Common Temporary Cost) × 0.9 + (Site Management Cost) × 0.9 + (General Management Cost) × 0.68 } × Consumption Tax Rate

If the standard amount calculated by the above formula is within the range of 9.2/10 to 7.5/10 of the estimated price, the standard amount will be set as the minimum limit price.
However, if the calculated standard amount exceeds:
9.2/10 of the estimated price: (Minimum limit price) = (Estimated price) × 9.2/10
If it is less than 7.5/10 of the estimated price: (Minimum limit price) = (Estimated price) × 7.5/10.

• Note: The minimum limit price is not disclosed at all before the bid.
• Note: The breakdown of the design amount will not be disclosed before or after the bid.

Related Links

• Method for Setting Minimum Restriction Prices in Construction Contracts