eProcurement in Japanese Construction Industry

April 2008 , 7 th

Jun-Ichi Yamashita

eTendering in Public sector

eTendering Core System

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The core system provides the “core” for the highly flexible eTenderring system that can be used by multiple public agencies.

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All functions necessary for bidding-related work are implemented in this system.

Standardization

Purchaser Purchaser Purchaser Purchaser Purchaser

Core Core Core Core System Core

Bidder Bidder Common Interface Bidder Bidder

Core

Bidder

Provision of Core System

All provincial authorities ’ needs have been reflected to the specification of the Core System.

The Core System has been developed as the standard of e-Tendering system of public works in Japan.

The development cost of the Core System is shared among all public agencies.

Expenses for software of e-Tendering system can be held down compared with the case that the agencies develop their own system.

Overview of Consortium

IT Vendors MLIT Know-how personnel operating funds JACIC & SCOPE Consortium e-Tendering System by MLIT Free of charge System specifications Provision conditions Development e-Tendering Core System Customization Sell Needs

Public purchasers including ministries, prefectural authorities, local government offices, public corporations, etc.

Status of eTendering in Public sector Adoption of the eTendering system  9 ministries/ 43 prefectures/ 17 big cities/ 425 small cities and towns/ 9 Public corporations Portal Site of Public Tender information  Prospect of tender  Prior tender information notice  Result tender notice Achievement of eTendering for MLIT  44,000 bids for works  62,000 bids for goods

eProcurement in Private sector

eProcurement in Private sector

CI-NET

Between General contractors and Subcontractors Based on CII (Japanese Standard) Secure Mail (SMIME) and ASP (HTTPS) The Procurement processes covered by CI NET  Invitation to Tender/ Tender/ Contract/ Progress Payment valuation/ Invoice/Bill

ASP:Application Service Provider GC:General Contractor SC:Sub Contractor SC SC SC SC SC ASP SMIME SC HTTPS SC SC SC SC SC SC SC SC ASP SC SC SC GC GC GC GC GC SC ASP SC SC SC SC SC

Transition of CI-NET users

N o. of U sers 10000 8000 6000 4000 2000 0 1992 1994 1996 1998 2000 2002 2004 2006 Y ear