Engineering "low price to win the bid" caused by the discussion of safety issues?

Construction projects to take the "low bid" is a common bidding method in foreign markets, in recent years, the domestic construction industry, many places are being implemented. However, due to various reasons, the market parties have mixed feelings about this.

This paper discusses some of the safety issues that have arisen and been triggered in the construction process of a hydropower station project after the implementation of "low bid". The viewpoints and examples of certain facts in the paper are not necessarily universal, but in the future, how to further correctly understand and improve the bidding methods and management, including "low bid", such as can play a role in attracting jade, which is the author's original intention.

Keywords: low bidding security problems caused by January 1, 2000, "the Chinese people *** and the State Bidding Law" came into force, the law provides for the development of the market economy applicable to the management system of the previous bidding system has put forward new requirements. In July of the same year, seven state ministries and commissions jointly issued the Interim Provisions on Bid Evaluation Committee and Bid Evaluation Methods, Order No. 12, for the first time, clearly put forward the principle of the lowest bid, the introduction of this administrative regulation is aimed at convergence with international practice.

At present, the advocacy of the so-called "low bid" is not the absolute lowest price, according to the law of the market, the lowest price should be higher than the cost price. This is China's "Bidding Law" has long been clearly stated: the lowest price should not be lower than the cost price.

Why the current water conservancy and hydropower project "low bid" has become a hot issue in the industry has caused extensive discussion and controversy? Macro, "low bid" it does play a certain role in promoting the development of the national economy. First of all, reduce the country's investment in infrastructure, saving money; Secondly, it changed the water conservancy and hydropower project construction investment, long construction period, slow results of the situation, is conducive to the further development and utilization of water resources; Thirdly, to enhance the construction of the investor's confidence. From an overall point of view, the emergence of "low bid" is in line with the development of economic laws, in line with the requirements of the current national economic development, so that the emergence and existence of "low bid" is inevitable. Microscopically, the "low bid" has a certain role in promoting the construction of the project, which is mainly reflected in the construction side by tapping the potential to increase efficiency, greatly shorten the construction period, improve the quality of the project, so that the investor to achieve a high speed, high quality, high efficiency, low cost, that is, "three high and one low" target requirements. The target requirement of "three highs and one low". But "low bid" and is the construction side in the increasingly fierce market competition, in order to survive, chart development, construction companies have no choice but to take the low bid to win the project.

1, reasonable "low bid" is the future development trend of the construction market and policy direction.

1.1 The current "low bid" is inconsistent with the law. Realistic examples show that the market recently on the "low bid" understanding and certain areas of practice there is a great misunderstanding. Not only contrary to national conditions, but also against the existing laws of China. From the "bidding and tendering law" legislative purposes and objectives to understand, although there is a competitive way to improve the investment efficiency of the legislative ideas, but can be sure that there is no bidding through the bidding to make the bidder unilaterally reduce the cost, improve the unilateral investment efficiency of the intention, and even more does not exist in the concept of the project cost the lower the better. The legislative purposes and objectives of the Act emphasize very clearly: to regulate bidding and tendering activities by means of competition, to improve the efficiency of investment, to ensure the quality of the project, and to protect the State, the interests of the social public * * * and the legitimate rights and interests of the parties to the bidding and tendering. The pursuit of below-cost "low bid" clearly ignores these legislative purposes.

1.2 "low bid" does not meet the current market situation in China. On the one hand, China's current level of development of the market economy compared with foreign countries, there is a big gap between the market competition is still at a low level, most construction companies can only organize construction general contracting, by improving the general contracting management to reduce the cost of space is not large. In this case, the promotion of "low price to win the bid" often leads to project quality accidents, project safety accidents and safety hazards or safety accidents caused by the reduction of investment in project safety facilities; on the other hand, whether from the legislative level or technical level, we have not yet fundamentally resolved what is the cost of the price, how to determine that the tender price is too low and other key issues. The key issues. Therefore, in practice, it is very easy to cause below-cost vicious competition.

1.3 advocate reasonable "low bid" is the development trend. What is a reasonable price actually how to determine? From the current practice there is no clear regulations and standards, which will inevitably result in the bidding process of arbitrariness, resulting in many negative impacts. First of all, the quality of the hidden problems. Some construction units in order to pursue profits or not a large loss, not hesitate to cut corners to reduce the cost of the project, thus affecting the quality of the project, "tofu dregs" project is a specific manifestation; Secondly, the low price of winning the bidding caused by the construction enterprises operating difficulties, affecting the development of enterprises. In recent years, most of the construction enterprises on science and technology innovation investment has been reduced year by year, some construction units for many years can not get a scientific research results. It is not that enterprises do not pay attention to the progress of science and technology, but the inability to invest a lot of money for scientific and technological innovation; third is the enterprise safety reputation is affected. State-owned enterprises "low bid" project is difficult to feed their own teams, most of the "subcontracting" form. As a result of the implementation of the package instead of management, subcontractors in the direction of safety investment in the choice of the existence of speculative psychology, heavy immediate interests, can save is to save, the input is not invested in place, once the safety accidents, the winning unit must bear the main responsibility for safety.

1.4 existing and bidding related regulations and systems to be improved. China's 1998 "Construction Law" focuses on adjusting and restraining contractors, the construction unit (owner) is not enough to regulate, especially how to regulate the owner's terms and conditions regarding bidding and other aspects need to be improved. Laws and regulations there is a need to explore the issue of whether there is a need for government projects, social projects, private projects to implement categorization and supervision, focusing on government investment projects to manage well, in place, and effective; social projects and private projects to seize the main links in the supervision, and other liberalization. In particular, some important links, such as strengthening the management of project quality and construction safety, environmental protection, remediation of illegal subcontracting, illegal subcontracting problems. This is a very prominent problem in the industry, but also the root cause of other problems.

2, the market calls for "low bid" bidding methods need to be improved.

2.1 Currently, the construction industry market bidding often used to evaluate the way there are two main: one is the comprehensive evaluation method; the other is the evaluation of the low bid method.

The comprehensive evaluation method was originally a way to determine the optimal contractor by considering factors such as cost, management, quality, and reputation to make a comprehensive evaluation. In practice, in order to avoid the subjective factors of the operator and the jury and lead to the emergence of unfair behavior, the bidding party in many projects to cancel the qualitative evaluation of the content, or only provides for the mechanical verification of the content. The method has gradually been reduced to a result not dissimilar to the drawing of lots or the shaking of prizes. The evaluation of the low bid method, due to the rationality of the cost can not be evaluated, can only be based on the low price as a subjective basis, there is a bidding irrationality, difficult to regulate after the winning bid, which is why it creates a "half-assed project", "phishing project", and "Low bid, high price settlement" and other phenomena.

2.2 "low bid" can not realize "win-win". Since the implementation of the "low bid", from the surface of the project cost does reduce the percentage of investment owners to get benefits. But stand in the construction point of view comments, followed by vicious competition in the market intensified, buy bids, sell bids, bidding, bidding and other disruptions to the market behaviors occur from time to time, the engineering excellence rate dropped significantly, the rise in fatal accidents, project debt, labor disputes continue to intensify and other issues. There is a large proportion of construction enterprises to the lowest price after winning the bid, due to the price of building materials and arrears of construction payments of the two major factors, it is really to the point of struggling, to the construction enterprises to bring the impact of staff layoffs, the serious outflow of professional and technical personnel.

2.3 "low bid" is easy to cause other problems. There has been a theory that, after the project low bid, the contractor can avoid the project quality, construction period, construction safety and civilized construction and many other aspects of the problem may arise through the post-bid management. But in the reality of construction, after the bid management is very difficult to catch the results, and management costs remain high. At present, why in the construction market, construction sites, there are strip steel, expired cement, low-quality water, electrical fittings, substandard bricks and low-quality aluminum alloy profiles in the market for buying and selling? The reason is very simple, because this is an economic law: construction companies win the bid at a low price, must take a variety of ways to reduce costs, some rely on jerry-built to balance the "low bid" brought about by the cost of the gap. If this phenomenon is widespread, the market regulators and what can be done? In addition, with the lowest price in the construction bidding spread, the lowest price design, exploration, supervision, the lowest price has also produced. Construction site supervision personnel will also be reduced again and again, some of a supervisor to manage a few projects, and supervisors sympathize with or acquiesce to jerry-built this abnormal situation occurs. This situation continues, how to ensure that the project does not have safety accidents.

2.4 "low bid" resulting in the water conservancy and hydropower construction market lurking crisis. Southwest Sichuan, for example, a hydroelectric power plant project, the project for the basin development and construction planning "a library of five levels" of the five terraced power station, from top to bottom of the fourth level, was recommended for the first phase of development of medium-sized hydroelectric power station. Because of the basin development prospects, the four successful construction contractors are national general contracting construction of a level above the enterprise. At the beginning of the project, the construction units to establish corporate image and create a project reputation, coupled with the Engineering Bureau (Group) headquarters in the financial support, the four project departments have launched than the quality, than the progress, than the safety and civilization of the construction as the main content of the competition. The good times do not last long, just over a year's time, the project period has not yet passed the halfway mark, "low bid" drawbacks are exposed.

2.4.1 capital turnover difficulties. Project quality requirements to become a "high-quality engineering", that is, to ensure that the funds and to ensure quality, the lowest price to complete the project, which undoubtedly gave the construction side of a great problem. In order to fulfill the contract period, most of the constructors put their own team can not accept the unit price of the project, subcontracted to the local small construction team, and even "contractor". Why does the private sector have an absolute advantage when it comes to quotations? Private enterprise owners are mostly in the "no project will certainly die, there may be living project" concept driven by low prices as the only bargaining chip to find the project. Because of the unrealistic risk of below-cost price to contract to their own inability to undertake the project, which will reduce the project safety facilities for the future investment, jerry-built, deductions or arrears of wages of civil workers lay hidden dangers.

2.4.2 The vicious circle is the inevitable result of "low bid". The unit price of the project to a large extent determines the construction behavior, reasonable project cost is the lifeline of the construction enterprise, when the contractor's project is difficult to make a profit or even a loss, it is the first reflection of how to reduce the cost, and do everything possible to recover the losses. In the purchase of materials, drilling list and contract loopholes as much as possible to choose inferior or poor quality products; in the construction of the construction specification does not operate, reduce materials, labor, machinery input; in the manpower input, as much as possible, the use of cheap labor (untrained or low technical grade workers); plus the "contractor" late itself to the insolvent In addition, the "contractors" themselves have become insolvent at a later stage, and the phenomenon of arbitrary deduction and delayed payment of wages to civil workers occurs from time to time. With the passage of time, the number and explosive power of such "hidden dangers" will become bigger and bigger, and one day it will produce a domino effect, which will spread to many fields of production safety, project quality and social security. This series of problems will increase social instability, which is extremely unfavorable to the healthy development of the economy and society. Such as only in June 2005, a project department of civil workers because of wages by the "contractor" arrears occurred in two collective petition and blocking traffic.

3, find the "low bid" knot, as soon as possible to establish and improve in line with China's national conditions, with socialist characteristics of the bidding law.

3.1 to determine the higher than the cost price is the key. At present, "low price in the law" is in the implementation and exploration stage, if in addition to the human factor in the so-called "pre-qualification" stage to play "tricky" words, one of the most important is the so-called Cost price determination. Given the different levels of bid evaluation experts, it is easy to go against the will of the bid evaluation method. Because the current enterprise quota is not generally established, the market pricing is still in the groping stage, the bidder's offer, in fact, the project can be how much profit, how many compilation and evaluation of bidding experts can scientifically and reasonably clear.

As a business, is the enterprise construction equipment, construction methods and efficiency quotas and actual management costs to calculate the tender price. As the owner, is the use of local commonly used, more advanced construction equipment and construction methods and proven by the practice of more advanced efficiency quotas as the basis for calculating the cost as a tender, or just compared to the price of similar projects to prepare the amount of investment, but not to prepare the tender. Due to the different strengths of enterprises, different management levels, the bidding price difference between enterprises is relatively large, and sometimes even very different. Owners by reviewing the bidding information, analyze whether it is reasonable and reliable, from which selected both reasonable and reliable, but also relatively low bid as the winning unit, the bottom of the bid can only be used as a reference for investment and bid evaluation.

3.2 How to determine a reasonable bid. Reasonable bidding price varies depending on the region and the specific conditions of project implementation. Its content should include: suitable for the region's natural conditions, market conditions (engineering contracting market, materials and equipment market and labor market conditions). Reflecting the ability and management level of local construction forces (including possible foreign forces) and market price levels; in line with engineering standards and quality requirements, to ensure that the necessary construction conditions, thereby ensuring that the project quality standards are met; in line with the duration of the requirements. Such as within a reasonable period of time, do not have to normal bidding; the need for appropriate early completion, should consider the corresponding compensation; reasonable bidding should enable the contractor to complete the established construction tasks on time and in accordance with the quality and quantity at the same time, to obtain a certain amount of profit, so that the enterprise can continue to develop. Only through the accumulation and analysis of practical information, cross-consideration of changing circumstances (changes in the content of the project, the market, prices, etc.), in order to arrive at a reasonable bid.

3.3 should be a reasonable low bid method as the current national conditions of China's choice. Reasonably low bidding method is in each bidder to meet the substantive requirements of the bidding documents under the premise of the expert reference to the bidder's bidding, and the bidding price and the benchmark price against the evaluation, the selection of a reasonably low bidder for the winning bidder preferential evaluation method. Reasonably low bidder is different from the "lowest bidder" is the main feature: a reasonably low price. In general, can take the average price of the bidder's bidding price for the benchmark price (except for the abolition of the bid), to facilitate the bidder to control in the bidding activities in the whole process regardless of the way the bidders (perhaps according to the construction budget down a certain percentage, or perhaps according to the enterprise quota quotes) offer, are the benchmark price for the price of the benchmark; in the evaluation of bidding combined with the bidding documents published substantive requirements, the bidders for a comprehensive Evaluation and validation of the bidders in the bid evaluation in conjunction with the substantive requirements publicized in the bidding documents, and selection of bidders on merit.

3.4 Implementation of one-vote veto system. In the "low bid" bidding, where the total price concessions or concessions, labor wages, machinery shift costs, material prices should be listed in the tender for the completion of the settlement of the price. In the tender offer evaluation, not only to evaluate the total price, but also evaluate the unit price, as far as possible to minimize the impact of unbalanced corporate offer; safety construction costs, employee social insurance and other costs in full according to the regulations to ensure that workers' interests. Below-cost offer, the implementation of the bid price below the cost of the one-vote veto system.

3.5 Develop cost management methods and implementation rules. Analyze and decompose in the bid contract, determine the target cost, target profit and project cost standard. Strictly control the expenditure, and in the operation, quality, safety, equipment and other five aspects of the annual or stage target assessment of responsibility, quantify the responsibility, refine the assessment indicators, harden the supervision, assessment, rewards and punishments based on. Increase the cost control in the construction process, as well as the consumption of materials, labor costs and the cost of machinery used in the construction process.

3.6 The lowest evaluated bid winning method, a claim system should be introduced. Contractors in the fight for engineering business, has been the minimization of profit, in the actual construction of uncertainty is still a lot of factors, the construction enterprise to bear the pressure is very big, the owner and the construction enterprise is legally equal contract performance relationship, but on the current state of the construction market, the construction enterprise is in a disadvantaged position always exists, so it must be introduced into the system of claims to effectively guarantee the performance of the contract between the two parties to the greatest extent possible To achieve fair performance; as long as the owner has violated the contract agreement, you have to pay claims; pay attention to the contract change claim work, which is an important profit growth point of construction enterprises, but also to maintain the interests of the necessary means of enterprise.

3.7 Establishment of integrity system, the bidder's integrity as one of the basis for bid evaluation. From the bidder's qualification reputation and performance ability of two aspects, to establish the integrity system, the enterprise's registered capital, fixed assets of the situation as the enterprise's ability to fulfill the contract added to the assessment. At the same time, the enterprise in accordance with the law to review the contract, in accordance with the law, tax, good bank credit, construction of good works, good safety production, comprehensive social security management, civilized construction and pay migrant workers' wages in accordance with the law, as the credibility of the construction side of the assessment, to set a scientific and effective judging scale, strict pre-qualification system, to prevent pre-qualification in a pro forma. In the bid evaluation process of the lowest price winning method, the bidder's integrity as an important part of the bid evaluation, no integrity of the bidder directly rejected outside the ranks of the competitors, the project to the real integrity of the reasonable lowest price winning bidder. To implement the implementation of the performance bond system, the means of the market, the use of banks on the implementation of the project risk guarantee, the possibility of major safety accidents on the implementation of mandatory insurance projects. Construction enterprises through the creation of high-quality projects, to establish the enterprise's social credibility and image, to play the enterprise's geographical advantages, strengthen the bidding efforts, in the same watershed to build a number of projects, the enterprise's limited resource allocation is very favorable. Enterprises can form the first and last echo, mutual support, mutually dependent on the development of the pattern, with economies of scale to reduce the "low bid" brought about by the unfavorable factors.

3.8 Drawing on and promoting some good experience in some areas. Such as coastal places to implement a new bid evaluation, bidding methods, that is, the use of the lowest price and reasonably low average bid evaluation methods, the biggest advantage is that the general project does not carry out technical bid evaluation, reducing the impact of human factors on the bidding, and only evaluation of commercial bidding of the bill of quantities, so that the evaluation of the bidding is fair, reasonable and fast, conducive to saving the national financial investment and clean construction, and to a certain extent to prevent unhealthy competition and bid-rigging Crosstalk, but also make the winning price is more reasonable. For technically complex, difficult construction of large-scale projects using a comprehensive bidding method, is conducive to the selection of the most outstanding enterprises to undertake the project.

3.9 Strict implementation of the Ministry of Construction "new regulations" to ensure safety investment. In the future, where the implementation of reasonable low bidding project, must pay attention to the safety of the work of the investment funds are insufficient, seriously affecting the problem of safety in the construction industry. Must seriously implement the Ministry of Construction issued from September 1, 2005 shall come into force, "construction safety protection, civilized construction measures and the use of cost and management regulations". And according to the provisions of this clear: safety protection of construction works, civilized construction measures by the cost of "construction and installation project cost components" in the measures contained in the cost of civilized construction costs, environmental protection costs, temporary facilities costs, safety construction costs, to ensure that the funds are earmarked for special purposes.

3.10 Strengthen the comprehensive supervision of the market. Construction administration department shall in accordance with the current standards and norms of the construction site safety protection, civilized construction measures to implement the supervision and inspection, and the construction unit to pay and construction unit to use safety protection, civilized construction measures cost supervision. Construction units, design units in the preparation of project estimates (budget), should be based on the project location of the project cost management agencies to determine the appropriate rate, a reasonable determination of the project safety protection, civilized construction measures. When the construction unit applies for the construction permit of the construction project, if it fails to submit the payment plan for the cost of safety protection and civilized construction measures agreed in the construction contract as a specific measure to ensure the safety of the project, the competent administrative department of construction will not issue the construction permit. The construction unit shall, in accordance with the administrative regulations and contractual agreements, timely pay to the construction unit for safety protection and civilized construction measures, and supervise the construction enterprises to implement safety protection and civilized construction measures. The construction unit shall ensure that the safety protection, civilized construction measures for the exclusive use of funds, in the financial management of a separate list of safety protection, civilized construction measures project cost list for inspection. General contractor of the construction project safety protection, civilized construction measures for the use of the cost of the overall responsibility. Engineering supervision unit should be implemented on the construction unit safety protection, civilized construction measures for on-site supervision.

Conclusion: At present, China's building construction enterprises in the "more meat less" A market situation, is a vulnerable group, it can only be a passive to accept unfair bidding documents, contract terms, below-cost bidding hinders the healthy development of the construction industry as a whole.

But, the implementation of the "low bid", but also represents the development of market competition and the direction of development, it is through the economic leverage to promote the industry and technological progress. Especially in the current state-owned investment in the case of the main position, "low bid" can effectively reduce some of the human factor, is conducive to preventing corruption in the field of bidding, is conducive to the healthy development of competition in the construction market, and is conducive to the construction industry towards the survival of the fittest, the strong stronger, the good and better potential for the development of the industry. Therefore, to explore how to determine the optimal "low bid" evaluation of the bidding method, is to achieve the owner and the construction side of the "win-win" way, but also to achieve safe production, civilized construction of the premise.

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