Difference between pre-tender estimate and cost price

The difference between pre-tender estimate and cost price is as follows:

Pre-tender estimate: a term for bidding, which refers to the amount that the construction unit is prepared to pay all the expenses for the contracted project. The pre-tender estimate is generally prepared by the design unit, the engineering consulting service department or the department specializing in the preparation of construction budget quota, and then determined by the construction unit, the competent department and the China Construction Bank.

Cost price: it is the value obtained by the commodity. If it is a commodity produced by itself, its cost price includes raw materials, wages of workers, depreciation expenses to be shared, wages of production managers, utilities, maintenance fees, etc. If it is purchased goods, the cost price is the purchased value of the goods. Sometimes called ex-factory price.

Pre-tender estimate service conditions

1, the pre-tender estimate is the reasonable base price calculated by the owner to organize special personnel to prepare some projects or equipment, or both projects and equipment. It is not equal to the approximate (pre-calculated) or contract price of the project (or equipment). If there is a pre-tender estimate for a project subject to tender, the tenderer shall make an announcement at the time of bid opening. The pre-tender estimate can only be used as a reference for bid evaluation, and cannot be used as a condition for the rejection of the bid price beyond the fluctuation range of the pre-tender estimate.

2. The pre-tender estimate is the expected price of the tenderee, which is a means used by the tenderee to measure the bidding price of bidders and also a means for the tenderee to control the investment.

There are two purposes for the tenderer to set the pre-tender estimate: first, when insisting on winning the bid at the lowest price, the pre-tender estimate can be used as a reference for the tenderer to master the bidding basis, not as a basis for bid evaluation; Second, in order to avoid damaging the quality due to the low bid price, the quotation close to the pre-tender price is rated as the highest score (winning the bid), and the quotation above or below the pre-tender price is graded step by step, so that the pre-tender price can be used as the basis for bid evaluation and the expected price of the tenderer can become one of the means of quality control.

The Bidding Law does not stipulate that the pre-tender price must be set for bidding, but it does not prohibit the setting of pre-tender price. For those with pre-tender estimate, the requirements of "confidentiality" and "reference pre-tender estimate" are also put forward. It can be seen that the pre-tender estimate is permitted by law and is also used in bidding in China.