eProcurement in Japanese Construction Industry April 2008, 7 th Jun-Ichi Yamashita

eTendering in Public sector

eTendering Core System The core system provides the “core” for the highly flexible eTenderring system that can be used by multiple public agencies. All functions necessary for bidding-related work are implemented in this system.

Core Standardization Purchaser Bidder Purchaser Common Interface Core System Core

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 MLIT Consortium System specifications Provision conditions Public purchasers including ministries, prefectural authorities, local government offices, public corporations, etc. Development IT Vendors Sell Needs Customization e-Tendering Core System e-Tendering System by MLIT Free of charge JACIC & SCOPE Know-how personnel operating funds

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

Transition of CI-NET users