Construction project cost Construction project bidding

Mondo Social Updated on 2024-01-29

Overview of tendering for construction projects.

First, the concept of bidding.

Bidding is a way of selecting contractors through competition. The activity of the contract-issuing unit to solicit the contractor to participate in the contracting competition is called bidding. The construction unit that is willing to contract the project to participate in the contracting competition according to the bidding requirements is called bidding.

The employer of the project is the tendering unit (i.e., the owner), and the contractor is the bidder.

Construction project bidding includes construction project survey and design bidding, construction project supervision bidding, construction project construction bidding and construction project material procurement bidding. According to the Tendering and Bidding Law of the People's Republic of China, there are two types of statutory compulsory bidding projects:

The law clearly stipulates that the project must be tendered;

Projects that must be tendered in accordance with other laws or regulations.

Second, the project bidding and bidding procedures.

The bidding and bidding procedures for construction projects refer to the order, steps and methods in which the bidding and bidding activities of construction projects operate in a certain time and space order. It begins with the issuance of a tender announcement or the issuance of an invitation to bid, and finally issues the notice of winning the bid, during which it has roughly gone through several main stages such as bidding, bidding, bid evaluation, and bid awarding.

From the two different perspectives of the tenderer and the bidder, we can more clearly grasp the whole process of construction project bidding and bidding

The bidding procedure for construction projects is generally divided into three stages.

1) Bidding preparation stage The time period from the beginning of the bidding application to the issuance of the bidding advertisement or invitation to the bidding letter.

2) The bidding stage is also the bidding stage of the bidder, from the date of issuing the bidding advertisement to the date of the deadline for bidding.

3) The period from the date of opening the bid to the signing of the contract with the winning bidder.

The bidding procedure for construction projects can be referred to the figure.

Knowledge tips.

Tenderee. The procedures for the activities related to the tendering carried out mainly by the tenderer and its first person can be called the bidding procedure;The procedures for the activities related to the bidding carried out mainly by the bidder and its first person can be called the bidding procedure. The organic combination of the two constitutes a complete bidding and bidding procedure.

Third, the basic principles of bidding and bidding.

China's Tendering and Bidding Law stipulates that tendering and bidding activities must follow the principles of openness, fairness, impartiality and good faith.

1.Public. The principle of openness followed in the bidding and bidding activities requires the disclosure of information in the bidding activities, the disclosure of bid opening activities, the disclosure of bid evaluation standards, and the disclosure of bid awarding results, as shown in the table.

2.Fair. The tenderer should give all bidders an equal opportunity to compete, which includes giving all bidders the same amount of information, the same bidding qualification requirements, and no tendentious bid evaluation conditions.

3.Fair. The tenderer in the implementation of the bid opening procedures, the bid evaluation committee in the implementation of the bid evaluation standards should be strictly in accordance with the regulations, the same scale, can not favor one over the other, especially in the process of dealing with late bids, judgment of scrapped bids, invalid bids and questioning to reflect fairness.

4.Honesty and credibility.

Honesty and credibility are the basic principles of civil activities, and both parties to the bidding and bidding must be honest and trustworthy, and there must be no deception or breach of trust.

Fourth, the basic way of bidding and bidding.

For some large-scale projects, there are four types of bidding methods adopted internationally, namely, unlimited competitive public bidding, limited competitive selection bidding (or invitation bidding), two-stage bidding and negotiation bidding.

China's "Interim Provisions on Bidding and Bidding for Construction Projects" (hereinafter referred to as the "Interim Provisions") only stipulates two ways of bidding, namely open bidding and invitation to bid.

In the actual bidding process, there are two more common methods: two-stage bidding and negotiation bidding.

1.Open tender.

The tendering unit publishes the bidding advertisement through newspapers or professional publications, and openly invites contractors to participate in the bidding competition, and all interested contractors have an equal opportunity to purchase bidding materials for bidding.

2.Limited Tender.

Limited tendering is an invitation to a limited number of pre-selected contractors to participate in the bidding competition for a project.

The advantage of this method of tendering is that most of the contractors invited are experienced and reputable. Its disadvantage is that it may miss some rising stars who are technically and competitive.

3.Two-stage tendering.

A combination of the above two ways. First open bidding, and then choose the lowest and more credible from them.

Three or four companies carry out the second stage of **, and then the tendering unit determines the winning bidder.

4.Negotiate tenders.

The owner (construction unit) designates a qualified contractor, proposes an estimate, and the owner reviews and negotiates and approves, that is, the contract is signed. If no agreement can be reached through negotiation, the owner will find another company to negotiate until an agreement is reached and the contract is signed.

The important role of project cost in bidding and bidding.

First, the role of project cost in bidding.

In the bidding work, the project cost is the artificial "admission ticket", but also the core.

The project construction unit selects the contractor through the form of project bidding, and obtains the construction task contract with the highest quality, quality and construction period acceptable to the bidder. It can be said that the bidding and bidding activities are the activities of reasonably controlling the project cost and determining the best winning bid.

Project cost in the bidding activities, generally under the guidance and supervision of the management department, the main body of responsibility for engineering construction investment through the form of project bidding, the selection of the cost of the contracted project and the contracted construction unit, the construction unit is within the scope of the principle of the pricing basis, through the way of bidding, competition between peers, to the tendering unit can accept the first, quality, construction period to obtain the construction task of the contract.

A) the form of project cost in the bidding project.

At present, there are basically two forms of project cost for bidding projects:

The winning contract price is included, and a certain risk coefficient is considered in the bidding, and the contract is signed after winning the bid, and it is guaranteed at one time

The winning bid price plus design changes and policy adjustments will be used as the settlement price.

2) the method of determining the bidding project.

Generally speaking, there are two main ways to determine the bidding project.

1) Valuation method This method is commonly used, that is, the cost is calculated according to the design drawings using the current quota and documents.

2) Physical method: that is, according to the drawings and quotas, calculate all the labor, materials, and machinery required for a unit project, and multiply it by the local market at that time. This method is commonly referred to as volume-price separation.

The project cost determined by this method is basically close to the market and tends to be reasonable.

Whether the project cost is reasonable or not directly affects the vital interests of the construction unit and the construction unit, so it is a very important part of the bidding work to reflect the project cost truly, reasonably and scientifically.

Second, the bidding stage of the project cost control.

A) the significance of project cost control in the bidding stage.

The project cost control in the bidding stage is of great significance to the construction unit to carry out the construction of the project.

1.Bidder qualification examination is the premise of effective cost control.

In accordance with the requirements of the bidding documents to review the bidder qualifications is an important part of the bidding process, the purpose of the review is to select bidders with good reputation, high management level, strong technical force and few hidden dangers in the implementation of the contract, so as to ensure that the project is completed on schedule and with good quality.

2.The review of the bidder's construction organization design is the basis for effective cost control.

The evaluation of the bidder's construction organization design includes construction methods, technological processes, construction progress and layout, quality standards and quality and safety assurance systems, etc., which reflects the management level of the bidder, is an important measure to ensure the construction period, quality, safety and environmental protection, is the basis for the bidder to prepare the bid, and is also the basis for effective control of the project cost.

3.Bid evaluation is the key to effective cost control.

The bidder combines the preparation of the construction organization design and its own actual situation, and analyzes the bidding competitors to prepare the bidding **. Due to various reasons, such as improper methods, the bidder's bidding brings certain risks and hidden dangers to the tenderer, so in the bidding evaluation process, it should be reviewed in combination with the bidder's construction organization design to avoid unreasonable investment. Reasonable evaluation and adjustment of bidding is the key to effective control of project cost.

2) Factors affecting the bidding.

1.Poor quality of construction drawings.

The construction drawings are the basis for the preparation of the technical conditions and bills of quantities of the proposed project, and are the guarantee of the technical quality of the project and the accuracy of the bill of quantities. If the overall progress is blindly pursued and the time of the design stage is compressed, the depth of the construction drawing design is not in place, there are too many errors and omissions, and the building and structure and water and electricity installation do not correspond, resulting in frequent modifications in the project implementation stage, which brings many hidden dangers to the overall project cost control.

Knowledge tips.

Construction drawings. The degree of detail of the drawings determines the amount of project changes and the magnitude of the cost change, and it is necessary to eliminate the change of construction drawings after the bidding to bring about the change of the project cost.

2.Poor quality of bill of quantities preparation.

The bill of quantities is an important part of the bidding documents, but due to the different levels of the preparation personnel, the defects of some engineering design drawings and the hasty preparation time, there are non-standard project settings, unclear description of the characteristics of the bill of quantities and the content of the project, many missing items and missing items in the project, too many tentative projects, the unit of measurement does not meet the requirements, the calculation error of the engineering quantity is large, and the project code is incorrect, which will directly affect the bidder's ** , resulting in the completion of the bidding process in the project implementation stage and the settlement stage of the project cost out of control.

3.The bidding process is oversimplistic.

In order to save costs and shorten the bidding time, some construction units do not compile a bill of quantities, and directly adopt the pricing mode and bidding method based on the quota, construction drawings as the basis, and the bottom of the bid as the center, and its biggest drawback is that the project of the same construction drawing is far apart, there is no objective evaluation standard, and it is not convenient to evaluate and award the bid, and then the project cost cannot be controlled in the construction stage.

4.The contract is not rigorously signed.

This leads to a lot of visa changes.

The construction contract is an important part of the bidding documents, and it is also a very important part of the cost control under the bidding mode of the work volume list. In the process of formulating the engineering contract, it is necessary to eliminate the lack of detailed content, the imprecise wording of the special clauses, the unclear expression, the unspecific operation, the lack of professional knowledge, and the legal style.

Problems such as weak risk awareness seriously affect the management and cost control in the process of project implementation and settlement.

In the formulation of the contract, special attention should be paid to the detailed and specific provisions on the adjustment of the engineering quantity, the first adjustment, the performance guarantee, the project change, the project settlement, the contract dispute resolution method, etc. How to deal with construction claims should be detailed and clear in the special clauses.

For the control of project cost, the bidding stage of the construction project is a very important stage.

It is necessary not only to choose an ideal construction unit, but also to clearly define the rights, responsibilities and obligations of both parties to the contractor and the contract, and clarify the solutions to various problems, so as to avoid major disputes during the construction process or settlement. Therefore, the project budget personnel must improve the level of cost management and provide a reliable basis for decision-makers.

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