TMG to start trial with new procurement rules in June

Tokyo Metropolitan Government (TMG) will introduce new rules for its public procurement system on a trial basis from Juni 2017. The move was spurred by the discovery of major irregularities in a number of large scale public works tenders such as the new wholesale market in Toyosu and a number of venues for the Tokyo2020 Olympics. Lack of real competition in these tenders led to prices being driven up to extraordinary heights and practices where tenders were won by bidders offering 99.9% of the projected price.

Tokyo government discusses reform of procurement process

Following the upheaval last year concerning the procurement procedures related to construction of the Toyosu Market and Olympic venues, where projected prices were increased repeatedly, due to lack of companies willing to place bids, a number of measures to counter these problems where discussed by TMG on March 31.

Governor Koike had given a project team in charge of investigating Tokyo’s procurement system to come up with proposals to increase competition and thus prevent spiralling construction costs for large projects.

A number of proposals were made during the meeting:

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