Basic knowledge of project cost, a large summary of noun explanations

Mondo Education Updated on 2024-03-08

1. Bill of quantities.

A detailed list of the names and corresponding quantities of sub-projects, measure items, and other items of the construction project, as well as the fees and tax items.

2. Bidding bill of quantities.

The tenderer is prepared according to the national standards, bidding documents, design documents and the actual situation of the construction site, and the bill of quantities for bidding is issued with the bidding documents, including its description and **.

3. The bill of quantities has been priced.

A bill of quantities that forms an integral part of the contract documents is marked **, corrected by arithmetic errors (if any) and confirmed by the contractor, including its description and **.

4. Sub-project project.

A sub-project is a component of a single or unit project, which is a project that divides a single or unit project into several sub-divisions according to the structural part, the length of the road section and the construction characteristics or construction tasks; A sub-project is an integral part of a sub-project, which is a project that divides a sub-project into a number of sub-projects or projects according to different construction methods, materials, processes and road lengths.

5. Measures.

In order to complete the construction of the project, the project that occurs in the preparation of the project and the construction process of the project, such as technology, life, safety, environmental protection, etc.

6. Project characteristics.

The essential characteristics of the value of the sub-project and the measure project itself.

7. Comprehensive unit price.

Labor costs, material and engineering equipment costs, construction machinery and tools usage fees, enterprise management fees, profits, and risk expenses within a certain range are required to complete a specified list of items.

This definition is still a narrow comprehensive unit price, and fees and taxes are not included in the unit price of the project. The so-called comprehensive unit price in the world, generally refers to the comprehensive unit price including all costs, in the case of excessive competition in China's current construction market, it is still necessary to protect non-competitive costs such as taxes and fees. With the further improvement of China's socialist market economic system and the further improvement of the social security mechanism, it will only be a matter of time before the comprehensive unit price of all expenses is implemented. This definition is consistent with the definition of the comprehensive unit price in Order No. 56 jointly issued by the Ministry of Finance and the Ministry of Construction.

8. Risk fees.

Implicit in the comprehensive unit price of the bills of quantities that has been priced, it is used to resolve the risk of market fluctuations within the content and scope agreed by the employer and the contractor in the project contract.

9. Project cost.

In order to implement the contract project and meet the quality standards, the contractor must consume or use the labor, materials, engineering equipment, construction machinery shifts and their management and other expenses and fees and taxes paid in accordance with the regulations.

10. Unit price contract.

The employer and the contractor agree to calculate, adjust and confirm the contract price based on the bill of quantities and its comprehensive unit price.

For projects that implement the valuation of bills of quantities, the unit price contract method should generally be adopted, that is, the comprehensive unit price of the bill of quantities items in the contract shall be fixed within the conditions agreed in the contract, and shall be adjusted according to the contract when the conditions of the contract are exceeded; The items and quantities of the bill of quantities shall be determined on the basis of the quantities actually completed by the contractor and shall be measured.

11. Lump sum contract.

The two parties agree to calculate, adjust and confirm the contract price based on the construction drawings and their budgets and relevant conditions.

When the construction content and relevant conditions of the project change, the employer and the contractor shall adjust the contract price according to the changes and the contract, but the following principles shall be followed for the adjustment of the contract price caused by the change in the quantity of the project:

If the contract price is determined based on the quantity calculated by the contractor according to the construction drawings, except for the change in quantity caused by the change of the project, the quantity agreed in the contract is the final quantity completed by the contractor, and the employer and the contractor cannot use the change in the quantity as the basis for the adjustment of the contract price;

If the contract price is determined on the basis of the bill of quantities provided by the employer, the employer and the contractor shall adjust and determine the contract price according to the actual quantity of work (including project changes, errors and omissions in the bill of quantities) finally completed by the contractor.

12. Cost plus remuneration contract.

The two parties agree to calculate, adjust and confirm the contract price based on the cost of the construction project plus the remuneration agreed in the contract.

A cost-plus contract is generally selected in the following cases:

The project is particularly complex, and the engineering technology and structural scheme cannot be determined in advance, or although the engineering and structural scheme can be determined, it is not possible to conduct competitive bidding activities and determine the contractor in the form of a lump-sum contract or a unit-price contract;

Time is particularly short, and there is no time for detailed planning and negotiation, such as rescue and disaster relief projects.

13. Project cost information.

According to the investigation and calculation of the project cost management agency released the construction project labor, materials, engineering equipment, construction machinery class information, as well as the cost index and index of various projects.

14. Project cost index.

The ratio or ratio that reflects the degree of change of the project cost in a certain period relative to the project cost in a fixed period. Including the cost index divided by unit or single project, and the first index of labor, materials, machinery and other components divided by the constituent elements of the project cost.

15. Engineering changes.

Addition, subtraction, cancellation or change of construction technology, sequence and time of any work of the contract project proposed by the employer or proposed by the contractor and approved by the employer during the implementation of the contract project; modification of design drawings; changes in construction conditions; Errors and omissions in the bidding bill of quantities may cause changes in the terms of the contract or changes in the quantity of the project.

16. Deviation of engineering quantity.

The contractor shall implement the drawings of the contract project (including the drawings provided by the contractor with the approval of the employer), and calculate the quantity difference between the quantity to be measured for the completed contract project and the quantity listed in the corresponding bidding bill of quantities in accordance with the engineering quantity calculation rules stipulated in the current national metrology specifications.

17. Provisional amount.

A sum tentatively determined by the tenderer in the bill of quantities and included in the contract price. It is used for the procurement of materials, engineering equipment and services that have not yet been determined or unforeseen at the time of signing the engineering contract, the project changes that may occur during construction, the adjustment of the contract price when the adjustment factors agreed in the contract occur, and the expenses incurred for claims and on-site visa confirmation.

The provisional amount includes the following meanings:

Nature of the provisional amount: included in the contract price, but not directly owned by the contractor, but a sum of money tentatively determined and used by the employer.

The purpose of the provisional amount: It is used by the employer for the procurement of materials, engineering equipment and services required in the construction process that have not been determined or are unforeseeable at the time of signing the construction contract agreement; The employer shall use the contract price adjustment in the event of the occurrence of various contract price adjustment factors agreed in the contract during the construction process, as well as the costs of claim and on-site visa confirmation; Other expenses incurred for the project and approved by both parties.

18. Provisional valuation.

The amount provided by the tenderer in the bill of quantities for the payment of materials, engineering equipment and professional works that must occur but cannot be determined for the time being.

19. Daily worker.

In the course of construction, the contractor completes sporadic projects or work outside the scope of the construction contract proposed by the employer, and the unit price agreed in the contract is calculated.

"Daily labor" refers to a valuation method adopted for sporadic projects or work, including labor, materials, and construction machinery shifts to complete the operation. The unit price of the daily worker shall be determined by the bidder through the bidding, and the number of daily workers shall be determined according to the number of completed daily labor instructions issued by the employer.

20. General contracting service fee.

In order to cooperate with and coordinate the professional project awarding carried out by the employer, the general contractor shall keep the materials and engineering equipment purchased by the employer itself, as well as the expenses required for construction site management and completion data collection and collation.

It mainly includes the following meanings:

The nature of the general contracting service fee: It is a fee paid by the employer to the general contractor when the general construction contract is implemented during the construction stage of the project construction. Professional subcontracting or labor subcontracting carried out by the contractor is excluded.

The purpose of the general contracting service fee: When the tenderer contracts the professional project within the scope permitted by laws and regulations, the general contractor is required to coordinate the service; When the employer purchases some materials and engineering equipment on its own, it requires the general contractor to provide storage and other related services; The general contractor needs to coordinate and manage the construction site in a unified manner, and to summarize and sort out the completion data in a unified manner.

21. Safe and civilized construction costs.

During the performance of the contract, the contractor shall take measures to ensure safe and civilized construction, protect the internal and external environment of the site, and build and dismantle temporary facilities in accordance with national laws, regulations, standards and other provisions.

22. Claims.

In the course of the performance of the construction contract, if one of the parties to the contract suffers losses due to reasons other than its own, the other party shall bear the responsibility according to the contract or the provisions of laws and regulations, so as to claim compensation from the other party.

23. On-site visa.

The on-site representative of the employer (or its authorized supervisor or project cost consultant) and the on-site representative of the contractor shall sign and certify the liability events involved in the construction process.

24. Completion (rush) fee ahead of schedule.

The contractor shall take measures to speed up the progress of the project at the request of the employer, so as to shorten the duration of the contract project, and the resulting expenses shall be paid by the employer.

25. Compensation for delays.

If the contractor fails to carry out the construction in accordance with the planned schedule of the contracted project, resulting in the actual construction period exceeding the contract period (including the extension of the construction period approved by the employer), the contractor shall compensate the employer for the loss of expenses.

What is the difference between the construction fee and the fixed construction fee?

Construction cost = direct cost + equipment purchase cost + measure cost + enterprise management fee + regulatory fee + profit + tax.

Direct Costs = Labor Costs + Material Costs + Machinery Costs.

Comprehensive unit price = construction and installation cost and project quantity (comprehensive unit price of full cost).

Fixed construction and installation fee = fixed direct cost + 40% of fixed equipment purchase cost + measure fee + enterprise management fee + regulatory fee + profit + tax.

Fixed-rate direct costs = Fixed-rate labor costs + Fixed-amount material costs + Fixed-amount machinery costs.

Differences: one is to use a fixed price, the other is to use a budget price;

Note: When supplementing the materials, you must fill in the fixed price, otherwise it will affect the calculation of the cost document.

What is the difference between budget and list pricing?

a. Different stages.

Budget valuation is a cost document prepared at the stage of construction drawing design;

List valuation is a cost document prepared in the bidding stage, implementation stage and settlement;

b. The role is different.

The budget is an integral part of the design document, the basis for determining the bid, and the basis for controlling the construction cost.

The list is the basis for the valuation of the construction project, the basis for the payment and settlement of the project, the basis for adjusting the quantity of the project and the basis for making the project claim.

c. The preparers are different.

Budget valuation: Generally, the owner entrusts the consulting unit or design unit to prepare, or prepares it by itself.

List valuation: The bidding list is generally compiled by a third party entrusted by the owner; The bidding, implementation and settlement list is generally compiled by the construction enterprise itself.

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