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You must understand these 5 professional terms when doing construction project bidding

In the increasingly competitive construction market, the emergence of the bidding system has effectively standardized market competition and established a fair, open and just competition platform for the construction field. All parties to the bidding must understand Professional knowledge in bidding and bidding to avoid losses caused by your own negligence. Below are the professional terms related to construction project bidding and bidding prices that the editor has collected for you. Let’s take a look!

 1. Bidding control price

The bidder shall, based on the relevant pricing basis and methods issued by the national or provincial and industry construction authorities, as well as the drafted bidding documents and bidding project quantity list, The maximum bid limit for the bidding project is prepared based on the specific conditions of the project.

In accordance with the current national standard "Bill of Quantities Valuation Specifications for Construction Projects" GB50500-2013 (referred to as "Pricing Specifications"), construction projects that require bidding according to law must implement bill of quantities bidding and shall Prepare the bidding control price limit (the bidding maximum price is also called the column price, the highest quotation, and the budget control price).

This article stipulates the scope and principles of the bidding control price, and clearly regulates the preparation basis, qualification requirements and pricing principles of the bidding control price, and stipulates that the bidding control price should be announced in the bidding documents. It should not be raised or lowered, indicating that the bidding control price is the public maximum price, which reflects the principle of openness and fairness in bidding activities.

So, what is the bidding control price (maximum price or column price)? Article 2.0.24 of the "Pricing Specifications" stipulates: "The bidder prepares the maximum price for the bidding project based on the relevant pricing basis and methods issued by the national or provincial or industry construction authorities, as well as the drafted bidding documents and bidding project quantity list. ".

That is, the bidding control price (maximum bid price limit) set by the bidder within the limit of the project cost control target should generally include the total price and sub-item project fees, measure project fees, and other items Fees, fees and taxes are used to control the contract price of engineering construction projects.

The preparation basis is the "Bill of Quantities Pricing Rules", "Consumption Quota" and "Project Price List" issued by the provincial cost management department to reflect the social average price level of the same type of projects and maintain the building The fairness and impartiality of market bidding can control bidders from colluding to raise bid prices, protect the legitimate rights and interests of bidders, and is conducive to enhancing the transparency of bidding and promoting fair competition.

Therefore, for the bidder, the preparation of the bidding control price is of great significance. The preparation must be based on the actual situation of the project, accurately grasp the preparation scale, and fully consider market factors.

This is because the bidding control price is released together with the bidding documents. Some provinces require it to be published no later than three days before the bid opening or the deadline for the bidding documents. This requires that the preparation speed should be fast and accurate, and should be prepared at the same time. The quality must be high, requiring the compiler to be familiar with the "Bill of Quantities Valuation Rules", "Consumption Quota" and "Project Price List", and understand the construction technology and construction process.

Only when engineering cost professionals have high professional quality and technical capabilities can they prepare reasonable and standardized control prices.

2. Bid price

Bidding quotation refers to the calculation and determination of the total bid price for contracting the project when the contractor adopts bidding method to contract the project.

The bid price is the "project contract price quoted by the bidder when bidding." The bid price is determined by the bidder based on the project quantity list and pricing requirements in the bidding documents, combined with the actual conditions of the construction site and construction organization design, in accordance with the enterprise's project construction quota or with reference to the project quota issued by the provincial project cost management agency, combined with the current market prices of human resources, machinery, etc. information, complete the full cost of all items listed in the bidder's bill of quantities, and the bidding enterprise shall prepare and determine the bid quotation independently.

The principle for determining the bid price and the requirement for the basis for the preparation of the bid price are independent quotations. Independent quotations are the basis for market competition to form project costs, and fully reflect the economic strength, technical capabilities, equipment conditions and management level.

Without independent quotations, a competitive pattern cannot be formed, and the competitive purpose advocated by the "Tendering and Bidding Law" cannot be reflected.

However, independent quotations must also comply with the following basic principles:

(1) The current national standard "Pricing Specifications" and the "Pricing Specifications" issued by provincial engineering cost management agencies must be implemented. "Bill of Quantities Pricing Rate";

(2) The quotation shall not be lower than the enterprise cost;

(3) "Project Consumption Quota" issued by the provincial and municipal engineering cost management agencies, The "Project Price List" is only for reference when each bidding enterprise prepares a bid quotation.

Therefore, the bidding quotation is a demonstration of the strength of the enterprise. It is prepared by the bidder based on the internal quota of the enterprise. It is directly related to the bidder's labor, machinery, materials and management level, and construction technology, and bears the risks stipulated in the contract. The risk of independent quotation within the content and range.

It can be said that it is the bidder’s psychological price for the construction project, and it is also the lower limit price corresponding to the bidding control price. It reflects the advanced management level of the enterprise, and its quotation is formed according to the market mechanism, which is different from the previous price. Based on the relevant quota (social average price) as the basis for quotation, a sharp contrast is formed.

One thing that must be made clear is that the bid price is the price basis for signing the contract, but it is still different from the bid evaluation price. The contract price must be consistent with the bid price.

 3. Bid evaluation price

The calculation of the bid evaluation price is based on the bid quotation, taking into account quality, performance, delivery or completion time, equipment compatibility and spare parts. Various factors such as supply capacity, operation and maintenance costs after the equipment or project is delivered for use, environmental benefits, payment terms and after-sales services are converted into a certain currency one by one according to the weights or quantification methods specified in the bidding documents. The amount is added to the bid quotation, and the final result is the evaluated bid price.

In practice, it is easy to confuse the bid evaluation price with the bid price, because the basis for the bid evaluation price is the bid price. The bid evaluation price is determined by the bid evaluation committee in accordance with the requirements and standards of the bidding documents. Arithmetic errors, prices formed after correction without changing the substantive content of the bid price.

The bid evaluation committee determines the bid evaluation price based on the adjusted bid quotation, and conducts systematic review and comparison in accordance with the bid evaluation methods and standards specified in the bidding documents to draw conclusions.

At present, the basic requirements for domestic bid evaluation are whether the bidder makes a quotation in accordance with the content scope and bill of quantities or goods and services stipulated in the bidding document, and whether there are any arithmetic errors. If there are any, Correct as required. The revised price will be binding only after being confirmed in writing by the bidder. If the bidder does not accept the revised price, its bid will be rejected.

4. Signing contract price

According to the current national standard "Specifications for Valuation of Bill of Quantities for Construction Projects" GB50500-2013, the contract price includes signing contract price and contract price, and there is a difference between the two. .

The contract price refers to "the total contract amount agreed by both parties in the construction contract, including the provisional amount, provisional valuation, and day labor". The determined transaction price reflects the conditions for forming the contract price and the basis for signing the contract price, and is the result of bidding.

The contract price refers to "the amount used by the contractor to pay the contractor to complete all the work within the scope of the contract in accordance with the contract, including price changes that occur in accordance with the contract during the performance of the contract", that is, the settlement price upon completion of the project .

This is still somewhat different from the contract price mentioned in the bidding. In bidding activities, the contract price should be the bidder's winning bid price and the price determined by the bid evaluation committee after systematic comparison and review of the bidders' bids, that is, the signed contract price.

Therefore, the contract price is not equal to the evaluation price.

However, the signed contract price must be consistent with the bid price, because this is an offer made to the tenderer after the bidder has fully understood the bidding documents and accepted the relevant conditions, and under the condition that it is in his best interests. Once the tenderer wins the bid, This price is the price at which the contract is signed. This price is the price for completing all the items within the scope of the project listed in the bill of quantities. It is also a relatively reasonable price formed through competition.

In other words, the missing items after review and adjustment must be adjusted to complete the project content, but the bid amount must not be changed, otherwise, the bid will be rejected.

 5. Completion settlement price

The project settlement price refers to the amount of money that the contractor will settle to the owner in accordance with the terms and settlement methods agreed in the contract after the project is completed. The project settlement price usually needs to occur multiple times during project construction. Until the entire project is completed and accepted, the final project completion settlement, that is, the final settlement price of the project, is also required.

Thus completing the determination and control of the project cost of the final product. This article mainly explains the project material preparation payment, project price and post-completion settlement (project completion settlement).

The completion settlement price must be comprehensively determined from the construction contract, project quantity confirmation, on-site visa, claim, comprehensive unit price and charging standard.

In addition, the project settlement price is conducive to the project budget price, not to mention the project final settlement price. It is the project price after project settlement based on the actual completed project quantity based on the project price in the contract contract. The project settlement price is not always higher than the project budget price. The project settlement price is usually calculated based on the actual project quantity.

The above is all the price terms collected by the editor about the bidding activities of construction projects. I hope it will be helpful to you!

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