Over 25% of public works tenders in Fukushima end in failure
During a recent prefectural meeting in Minami-Soma, Fukushima Prefecture to discuss issues regarding the recovery the earthquake and tsunami which devastated the region in March 2011, it was announced that one in five tenders for public works ends in failure. In the Northern coastal area of Soso, where repairs of roads and coastal protection is concentrated the tender failure rate is even higher at 28.6%.
Reasons given for the high failure rate were the lack of labour available and shortages of subcontractors. Also high costs for materials and high labor costs, making is impossible to make concessions in terms of price.
The high rate of failed bids has plagued the prefectures already for a number of years and it had already taken some measures to improve the situation such as relaxation of the requirement to have qualified technicians at each and ever site at all times.
Contractors attending the meeting, asked for more flexibility from the government in terms of contracting period and methods, and more consultation with them to allow designated tender procedures.