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Multi-Criteria Tendering System (MCTS). Yoshifumi Nishimura Government Buildings Department Ministry of Land, Infrastructure and Transport, Japan The Workplace Network 2001 Oslo & Copenhagen 7 th May, 2001. Ⅰ Outline of MCTS. Background

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multi criteria tendering system mcts
Multi-Criteria Tendering System(MCTS)

Yoshifumi Nishimura

Government Buildings Department

Ministry of Land, Infrastructure and Transport, Japan

The Workplace Network 2001

Oslo & Copenhagen 7th May, 2001

outline of mcts
Ⅰ Outline of MCTS
  • Background
  • Request of the tendering system selecting contractor who offers the most advantageous conditions
  • Some public works need to be esteemed for construction period, safety conditions and so on, as well as for cost.
  • One of the reform of the tendering and contractiog procedures for public works
2 scope and coverage
2. Scope and Coverage

Applied to the following case:

  • The difference of overall cost is fairly high due consideration of the performance proposed by tenderer.
  • The contents of the proposed performance causes difference more fairly in the achieved performance than in construction cost.
  • The work especially requires environment preservation, special safety measures, etc.
3 award mechanism
3. Award Mechanism
  • Tender must correspond to the followings:

(1) Construction cost shall be under the ceiling price.

(2) Tender performance shall satisfy all the minimum requirement of indispensable criteria.

(3) Evaluation score shall be over the reference score.

  • Ceiling price is calculated on the premise that the purposed technical criteria can be materialized.
  • Reference score is gained by dividing reference points calculated on the base of minimum requirement by tender price.
  • Tenderer with the highest evaluation score get award.
4 evaluation score
4. Evaluation Score

FIBi = Basic points of indispensable criteria i

FIEi = Additional points of indispensable criteria i in accordance with performance

FDi = Points of dispensable criteria i in accordance with performance

Ci = Cost besides construction cost

(i.e. compensation cost)

5 miscellaneous
5. Miscellaneous
  • Commissioning entity shall

- show each evaluation criterion, evaluation method and so on in tender documentation.

- record and show the tender evaluation and the result of award to the public.

- properly cope with the complaint from the tenderers.

  • Security of the proposed performance

- to specify the performance on the contract documents

- to verify the performance by supervisions and inspections

- to state in tender documentation and contract documents that reconstruction or compensation shall be made if the realized performance would not satisfy the specifications.

first example of adoption of mcts in public building projects in japan
Ⅱ First Example of Adoption of MCTS in Public Building Projects in Japan

The Extra-high Voltage Substation for the new

Laboratory in Tsukuba Science City

Power receiving system: Main/Sub 2-feeder receiving system

Distribution system: Three-phase Three-wire system, 66kV

Insulated system: Gas installed system

Installed capacity: 15,000 kVA

Installation system: Indoor-type

evaluation criteria
Evaluation Criteria

(Base Point)

: given in case that all the proposed conditions are better than the minimum requirements


: given according to the amount of SF6 gas reduction, Efficiency of Transformer

(Cost of Power Rate due to Electrical Loss)

: total cost of the power rate corresponding to the power loss in twenty years






Base Points

Base points + Additional points

Ceiling price


Construction Cost + Cost of the power corresponding to the electrical loss

  • Notes: (x, y)
  • ・○△□:( Construction Cost, Evaluation Points)
  • ・●▲■:( Construction Cost + Cost of the power corresponding to the electrical loss, Evaluation Points)
examples of adoption of mcts in civil engineering works in japan
Ⅲ Examples of Adoption of MCTS in Civil Engineering Works in Japan
  • Removal of the bridge across the trunk road

Evaluation Criteria: Construction cost and Time of the road closing

Result: The time of the whole road closing was reduced an hour by the day.

  • Improvement of the dam

Evaluation Criteria: Construction Cost and Period of water level lowering

Result: The period was fifty-six weeks, thirteen weeksshorter than expected.


To procure and supply fine quality objects

impartially, inexpensively and timely

- Our responsibility

  • Commissioning entities should try to apply MCTS to suitable projects.
  • The case of the Substation tendering presented might be a model of MCTS.
  • The applicative possibility of MCTS should be examined.