Based on your understanding of the coexistence of fixed-rate pricing and bill-of-quantity pricing in my country, let’s talk about your personal feelings as a project estimator in my country.

First of all, you need to understand what fixed-rate pricing and list-based pricing are.

Quota pricing is based on national standards. Generally, each place has a different quota pricing manual, which is the price confirmed based on third-party standard data. This is generally called the information price. Every month, the local price Each quota station will issue one copy. During the budgeting process, the prices of materials and other materials are budgeted based on this information price.

List pricing is a budget bidding based on the material prices specified in the bidding documents. In other words, the price of this material is determined by the bidding party. At this price, you can do it if you are willing to do it, but forget it if you don't.

In addition, there are also differences between the two in terms of engineering quantity calculation rules. Simply put, the engineering quantities calculated by the list are less than the engineering quantities calculated according to the quota rules.

So, the profit for bidders is lower when bidding based on list price, so many people now say that the project is difficult to do. This is the reason. The actual construction volume was more than budgeted, and the price of materials was tightly controlled by the bidding party, so the profit was much lower than the original quotation. But on the other hand, list pricing is actually a very standardized pricing method that can be in line with international standards. For example, doing engineering is actually assembling products one by one. I won't make this product, but I will give you the materials, give you an approximate price, pay you the labor fee, and then you will do it. For this product, the value of the product you produce must be in line with the price range I gave you. List pricing is like this. I give you materials, give you a budgeted control price, and then let you build. The money I give you is actually paying for your craftsmanship. This is in line with the value you create. This is not the case with quota calculations. The conditions are much more relaxed, and material prices are not controlled, so the profit you get is much higher than the value you actually create. Fixed-rate pricing is a special pricing method formed based on the special conditions in the early stages of construction in our country. Transportation is inconvenient, and contact with various places is inconvenient. There is no unified material price. It can only be determined by the construction supervision departments of various places based on local material prices. There are certain limitations to budgeting. Obviously, this traditional pricing model is no longer in line with my country's current national conditions. Reform and opening up, joining the WTO, and rapid economic development require my country's various industries to integrate with the world, so they must be standardized and keep up with the pace of the world. Only by developing can our country's comprehensive national strength be improved. This kind of development requires a process. The coexistence of two pricing models, quota and list, also shows that we are in such a development process.

When I say this, you should understand that in the end fixed pricing will be replaced by a list pricing model.

As for your personal feelings as a cost engineer in our country, just tell the teacher that you are not a cost engineer. I am not a cost engineer either, so I am not qualified to talk about my feelings.