What is the difference between the bid base and the bidding control price?

The following is the relevant content brought to you by Zhongda Consulting on the difference between the minimum bid and the bidding control price for your reference.

1. Bidding control price

1.1 The concept of bidding control price

In the specification for pricing the bill of quantities of construction projects (GB50500-2008), bidding control is proposed The concept of price. The bid control price refers to the maximum cost set by the bidder for the bidding project based on the relevant pricing basis and methods issued by the national or provincial and industry construction authorities and calculated based on the design and construction drawings. Engineering construction projects invested with state-owned funds shall implement bill of quantities bidding and shall prepare bidding control prices. If a bidder's bid price is higher than the bidding control price, his bid shall be rejected.

1.2 Basis for the preparation of bidding control prices

1.2.1 Pricing specifications for construction project bills of quantities;

1.2.2 National or provincial and industry construction supervisors Pricing quotas and pricing methods issued by the department;

1.2.3 Construction project design documents and related information;

1.2.4 Bill of quantities and relevant requirements in the bidding documents;

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1.2.5 Standards, specifications, and technical information related to construction projects;

1.2.6 Project cost information released by the project cost management agency; reference market prices if project cost information is not released;

1.2.7 Other relevant information.

1.3 The role of the bidding control price

The role of the bidding control price determines that the bidding control price is different from the bid base and does not need to be kept confidential. In order to reflect the fairness and impartiality of the bidding and prevent the tenderer from intentionally raising or lowering the project cost, the tenderer shall truthfully announce the bidding control price in the bidding documents and shall not raise or lower the prepared bidding control price. At the same time, the tenderer shall submit the bidding control price to the project cost management agency where the project is located for reference. By controlling the price through bidding, the bidder can eliminate the possibility of collusion among bidders for excessive benefits and effectively curb bid rigging. By controlling the price through bidding, the bidder can avoid blindness in bidding decisions and enhance the selectivity and economy of bidding activities. . Bill of Quantities bidding is essentially a rule for the market to determine the price. The bidding control price is announced to all bidders in advance, making the competition among bidders more transparent and providing a platform for fair competition to all bidders. The combination of the bidding control price and the reviewed and reasonable lowest price bid can encourage bidders to speed up technological innovation and improve management levels. The bid evaluation method of winning the bid with the lowest reasonable price after review is the basic criterion for the bill of quantities valuation specification. The lowest bid price method after evaluation is that, under the premise that the substantive requirements of the bidding documents are met and the bid price is higher than the cost price, the bid with the lowest evaluated bid price will be the winning bidder. Bidding price control can effectively break up the interest chain of bidding rigging and collusion, improve the transparency of bidding activities, avoid secret operations in bidding activities, change the strange circle in which bidders circle around the bottom bid at all costs, and effectively curb the bottom-line bidding, leakage of the bottom-line, etc. The occurrence of illegal activities, and winning bids at reasonable low prices based on the market can play a positive role in effectively controlling state investment, curbing the phenomenon of "three supers" in projects, and preventing project corruption.

2. Bottom bid

2.1 The concept of bottom bid

In layman’s terms, it is the bottom line of price set by the contracting party. The bidding floor is one of the expressions of the price of construction products. It is the owner's prediction and control of the costs required for the bidding project, and it is the expected price of the bidding project. The preparation of the base bid is generally entrusted by the bidding unit and compiled by an intermediary agency approved by the construction administrative department with corresponding cost qualifications for the construction project. It is the basis for the owner to raise construction funds and the basis for the owner and his competent department to verify the construction scale. The bid base is confidential until the bid is opened.

In construction project bidding activities, the preparation of base bids is one of the important links in project bidding and a reference for bid evaluation. It is also a relatively arduous task with tight working hours and strong confidentiality. .

2.2 How to use the lowest bid price

The lowest bid price is a reasonable basic price calculated by the owner’s specialized personnel to prepare the part of the project or equipment for bidding, or both the project and the equipment. price. It is not equal to the estimate (budget) of the project (or equipment), nor is it equal to the contract price. The bid base is top secret information of the bidding unit and cannot be disclosed to any unrelated person.

The minimum bid price is the bidder's expected price. The bidder uses this price as a measure of the bidder's bid price and is also a means for the bidder to control investment. The bidder sets the minimum bid price for two purposes: first, when insisting on winning the bid at the lowest price, the minimum bid price can be used as a reference for the bidder himself, but not as a basis for bid evaluation; second, to avoid the possibility that the bid price is too high. If the price is low and damages the quality, the bid close to the bottom of the bid will be rated as the highest score (the winning bid), and the price of the bid higher or lower than the bottom will be scored decreasingly. The bottom price can be used as the basis for bid evaluation, making the bidder's expected price a basis for quality control. One of the means.

2.3 The role of the bid base

The bid base is the expected price of the bidding project, which can reflect the amount of funds for the proposed project to clarify the financial obligations of the bidding unit. According to regulations, the minimum bid for domestic engineering construction bidding in my country should be within the approved project budget or revised budget. The bidding unit uses it to control the project cost and use it as a criterion to judge whether the bidder's quotation is reasonable. The winning bid must be based on the quotation. Sign a contract. In this way, the owner can take the initiative to control the cost.

The use of the lowest bid can relatively reduce the project cost; the lowest bid is the criterion for measuring the quotation of the bidding unit. Only with the lowest bid can the rationality and reliability of the bid quotation be correctly judged; the lowest bid is an important factor in bid evaluation and determination. in accordance with. Scientific and reasonable bid bases can help owners correctly select construction companies with reasonable bid prices, guaranteed quality, appropriate construction periods, and good corporate reputation when evaluating and setting bids.

Tendering reflects the survival of the fittest and an open and fair competition mechanism. A good bid should be based on reality and reflect science and rationality. It puts the opportunity to win the bid in front of many companies. They can participate in the bidding by virtue of their respective advantages in personnel, technology, management, equipment, etc., and maximize the Maximize legitimate profits. Owners can also receive high-quality services and save infrastructure investment. It can be seen that preparing a good base bid is an important basic task for controlling project cost.

3. The difference between the bidding control price and the bid base

3.1 Different confidentiality requirements: the bid base must be kept confidential before the bid opening and announced at the bid opening. The bid control price should be disclosed in the bidding documents to improve transparency.

3.2 The preparation function is different: in the bid evaluation, the bid base can be used to compare and analyze the bid quotation, which has a reference function, but it cannot be used as the only direct basis for winning or scrapping the bid; the bid control price can effectively prevent bid raising. Bid quotations exceeding the bidding control price will become invalid bids.

4. Conclusion

Tender control price and minimum bid cannot be confused. The bid base is the price used as a reference when evaluating bids, and it cannot be used as the maximum bid price; the bidding control price refers to the maximum bid price of the bidder. Usually, the bidding price of the bidding unit can be higher than the minimum bid price, but it cannot be higher than the bidding control price. In actual work, we must fully master the methods and techniques of using bid control prices and bid bases to ensure the smooth progress of construction projects.

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