A comparison of contracting methods for bored pile (drilled shaft) construction between Europe and North America

Figures & data

Table 1 Tendering and contracting comparisons (public works) (Ohno and Harada 2006)

	United States	Europe	United Kingdom	Germany
Administration	FAR – Federal Acquisition Regulation Public bids	EU Directive 2004/18/EC Public Contracts Directive (establishes procedures and requirements for Public Procurement)	PWCR – Public Works Contract Regulations	VOB – Procurement Regulations for Public Works
Procurement	Unit Price Contracts (prevalent) Lowest bid Multiple bids Fast implementation	Open bid Restricted procedure Competitive procedure Negotiated procedure	Lowest bid VFM Open tender Restricted Negotiated EU threshold limits	Lowest bid Gov't capability for contracting services Public procurement EU threshold limits
System content	Traditional design bid build approach Sealed bids Public openings Fair system (encourages competition)	Threshold limits VFM Time limits standards (varies by tender requirements) Most economically advantageous tender	Contract value EU system	EU threshold limits Open Restricted or Negotiated
Contract award	Most competitive -lowest bid Best value	VFM Social/Environmental Concerns Certification & Experience Project Life Cycle Most Economically Advantageous Tender	VFM Most Competitive Bid Lowest Bid	Most economically advantageous –lowest price
Payment	Force account LS Unit price	Varies by country and contract	Unit price	Unit price LS GMP
Concerns	Cost overruns Schedule delays Litigation DSC	Integration/compliance of EU directive with national laws of each country	Prefers restricted and negotiated, (control of bid process) Cost overruns	Compliance with VOB regulations
Trends	Design Build PPP Best value	Implementation of the two-tier system (potential elimination of threshold limits)	VFM PPP	VFM