Guangxi Roads Development II Project

The other lesson learned from the project is that the award of contracts to low price bidders can result in contract management difficulties and implementation delays. To win a contract, the bidders, who are not familiar with Fe?de?ration internationale des inge?nieurs-conseils (FIDIC) contract and contract management in ADB-funded projects, offer low prices and take it for granted that the contract amount would be increased through contract variations during implementation. The low price bidders usually are not able to provide sufficient resources to implement the contract, thus resulting in slow progress in implementation. The incidence of offering low prices to bid for ADB-funded projects has decreased in recent years in the People's Republic of China (PRC), since contractors have become more familiar with contract management practice of the World Bank and ADB. However, at the county level, the problem is still widespread among local contractors. For future local roads bidding, a mandatory site visit could be arranged for all potential bidders before bidding documents are issued and a brief introduction to FIDIC contracts for the bidders could be carried out at that time.