Price formation mechanism and price control of project bidding?

The formation mechanism and price control of project bidding price _ Zhang Yudong _ Building Economy _ Building Chinese Network Engineering construction products, like other commodities and services, are affected by the law of value. Therefore, in the 2 1 century, especially after China's entry into WTO, the main feature of the formation mechanism of project bidding price is that the market forms the price, and the market price and competition fee are implemented on the basis of unified project division, unified measurement unit, unified engineering quantity calculation rules and consumption quota. Due to the high risk of bidding projects, especially international bidding projects, bidding quotation should be effectively controlled in the process of bidding calculation and decision-making and project construction. First, to make financial decisions, enterprises should talk to different contractors.

Keywords: project bidding project bidding cost management

1, foreword It is a business activity for an enterprise to produce and sell products, and engineering construction is also a business activity. People, money and materials are invested, and the products can be railways, bridges, highways, civil buildings or an industrial production device. The process of engineering construction is not a simple input and output, it involves market issues, user issues, benefit issues and so on. Engineering construction involves three aspects: design, material procurement and construction. Design and construction are two different stages in the process of engineering construction, and they are two independent majors. They need to control the cost separately like other commodity production and obtain certain profits. Therefore, the calculation and control of project cost is particularly important in project bidding. Although the high quotation laid the foundation for profit, it is impossible to win the bid at a high price in view of the fierce competition in the domestic engineering construction market. Especially after China's entry into WTO, foreign engineering contracting enterprises will enter the China market and compete with China engineering contracting enterprises. In addition, China engineering contracting enterprises will also seek development in foreign engineering construction markets. Therefore, we should sum up the experience and lessons of international and domestic contracted project construction management in the past, fully understand the characteristics and operating rules of the price formation mechanism in project bidding, effectively control the project cost, make good use of two resources, open up two markets, and improve the economic benefits of enterprises. 2. The formation mechanism of project bidding price The construction project cost generally refers to the total cost of a project (referring to the expected cost or actual cost). This is a dynamic investment. Its movement is governed by the laws of value, currency circulation and commodity supply and demand. Therefore, when calculating the bidding quotation of contracted projects, we should use the theories of decision-making, accounting and economics to evaluate the bidding strategy. After comprehensive identification and comparison from the aspects of administration, technology and commerce, the project cost is reasonably determined and made to bid by using scientific calculation methods and practical valuation basis. (1) Characteristics of the basis for the current project cost valuation in China Because the current project cost management system in China is established under the planned economy mode, the independent economic status of enterprises is neglected, and the state directly participates in management activities, directly formulating and controlling various factors that constitute the project cost, such as ex-factory price of equipment and materials, purchase and storage fees, transportation and miscellaneous fees, wages, overhead fees, management fees, taxes, etc. Bidding quotation of international and domestic contracted projects that are not suitable for market economy. China's construction enterprises rarely have their own construction budget quota, which brings certain difficulties to the bidding of international contracted projects. Although various engineering consulting companies have emerged in an endless stream in recent years, bidding competition and project management system have been implemented in construction projects, the quota and charging standards are still formulated and managed by the government as legal prices in terms of the basis of project cost valuation. Therefore, it is difficult to change the phenomenon of ignoring decision-making, implementation, economy and technology in project cost management.

⑵ Characteristics of valuation basis for bidding projects Under market economy conditions, timely and accurate capture of market price information of engineering construction is the key for owners and contractors to maintain competitive advantage, control costs and gain profits, and it is also an important basis for the calculation and settlement of project bidding prices. Therefore, we should strengthen the reform of the current project cost valuation basis, and establish a price mechanism based on the market-formed price on the basis of unifying the division of engineering projects, measurement units, engineering quantity calculation rules and consumption quotas, following the laws of commodity economy. That is to say, quantity and price should be separated and the attribute of pricing quota should be changed. Quota should no longer be regarded as a legal act of the government, but should be unified. Relevant consulting companies or professional associations shall, under the guidance of the state, formulate rules for calculating quantities and consumption quotas, promote fair competition in the market and maintain the balanced development of social productive forces. Prices should be gradually liberalized, first from fixed prices to guidance prices, and then from guidance prices to market prices, in line with the international market. An enterprise may formulate its own quota and charging standard according to the technical level, equipment level, management ability, qualification, experience and social reputation of its personnel. When calculating the tender offer of a specific project, we will make a flexible and independent offer according to the changes of market supply and demand, the price information and cost index provided by the government and social consulting institutions, the project quality, the contracting method, the contract term and the payment method, and in accordance with international conventions, norms and practices. (3) Calculation of engineering tender offer The form of engineering tender offer is pre-tender estimate. There are three main kinds of calculation of pre-tender estimate: construction drawing design stage, based on budget quota; The preliminary design or expanded design in the preliminary design stage is based on the budgetary estimate quota; The other is the comprehensive unit price method. We know that many projects are invited for bidding in the preliminary design or expansion design stage. Therefore, compiling the pre-tender estimate based on the budget estimate quota can avoid missing items or repeated calculation errors to a certain extent and ensure the accuracy of the calculation results, but the budget estimate quota used must be accurate and effective. In order to meet the needs of bidding, at present, various engineering consulting companies and professional associations can, under the guidance of the competent government departments, combine some sub-items into main sub-items and work out the budget estimate quota on the basis of the unified national quota in 2000, the construction quota compiled by the provincial construction committees, the housing renovation and decoration quota and the municipal quota. This can greatly simplify the workload of preparing the pre-tender estimate and save time. Enterprises can also combine expenses on the basis of budgetary estimate quota, cancel charging categories and become competitive rates. Competitive expenses such as management fees, management fees and profits of enterprises and all expenses such as national statutory tax rates are included in each unit price, and are not calculated separately, but also combined with the unit price method. In this way, combined with the engineering database accumulated by enterprises, according to the changes of market supply and demand, the price information and cost index provided by the government and social consulting institutions, the preparation time of the pre-tender estimate can be further shortened, the accuracy can be higher, and the necessary conditions can be created for the rapid quotation by computer. The future enterprise category will be reflected in the enterprise qualification, which is mainly used to measure the corresponding engineering category that the enterprise can undertake. In order to improve the competitiveness of project bidding price, advanced labor productivity should be reflected in the compilation of construction organization design, and efforts should be made to reduce the indirect time, idle and wasted time of project construction, and reduce and eliminate the rework time caused by design changes and construction mistakes. In addition, it is also necessary to avoid the ineffective idleness of construction machinery, reduce the floor space of temporary facilities, reduce inventory, improve the utilization rate of funds, and so on. 3. Effective control of project bidding price The bidding project is very risky for the contractor, and the risk arises from the decision to respond to the bidding documents and prepare the bidding documents. There are risks in the calculation of bid price. If the price is high, it will not win the bid or lose the bid. Once winning the bid, there may be a risk of loss. In the process of engineering construction, there are always risk factors, such as market price change risk, design risk, material procurement risk, construction management risk and so on. Until the project is completed and accepted, the project payment and quality deposit are fully recovered, and the personnel and construction machinery are safely withdrawn to the base or transferred to another project site, the risk of this project will finally disappear. Therefore, the bidding project must be well controlled, and it is particularly important to effectively control the bidding price. (1) Financial decision-making Financial decision-making is an important part of enterprise production, operation and financial management, and it is the evaluation and choice of enterprise management decision-making scheme from the financial point of view. In the calculation of international project bidding quotation, if we want to win the bid and make a profit, we must have a financial mechanism that adapts to the market economy system. Its main task is to provide dynamic information of enterprise funds, pay close attention to market changes, make forward-looking prediction and analysis, and provide decision-making basis for enterprise bidding. The traditional accounting mode of post-event management makes the current budget system only pay attention to the cost management of contracted construction and installation projects, ignoring the cost management of the whole project and the optimization of the overall effect, and failing to integrate modern management ideas, that is, the ideas and methods of forecasting first and then controlling. The post-accounting budget management system cannot prevent and solve mistakes, waste and fishing projects in the decision-making and design stages, nor can it prevent and solve the price problems, quality problems and inventory problems in the procurement and storage of equipment and materials. Budget management is inseparable from quota. Both parties should work on the basis of quota, communicate with each other and understand each other. Without this standard, they will be at a loss. Higher management departments, auditing departments and arbitration institutions also take quota as the judging standard, which is a static investment control.

The calculation of bid price is different from budget management. The calculation of project bidding quotation should consider the internal and external environmental factors of the enterprise in advance, as well as the price changes of labor, materials and machinery. To understand the geographical conditions and scope of the project, it is necessary to understand the whole process of project operation, project organization, quality management, resource management and contract management. It is necessary to study depreciation, technical measures, amortization of temporary facilities and risk analysis. Combining with the adopted construction scheme, standard specification, selected construction machinery, payment method of project price, etc., it is a kind of micro-management to analyze the bidding price and make financial decisions.

Therefore, we should establish "control" in advance, take the initiative to make financial decisions when bidding, combine technology with economy, control the project cost, and ensure winning the bid and making profits. (2) According to the actual situation of the project, an economic contract is an agreement between legal persons to define their mutual rights and obligations in order to achieve certain economic goals. Signing a contract is not only an economic business activity, but also a legal act, which is a measure to manage the economy by combining legal means with economic means. Therefore, under the condition of market economy, project bidding is not only a matter of pricing, but a synthesis of design documents, contract conditions, text management and bidding. We should not only calculate the correct price, but also quote a reasonable and competitive bid price. After the project bidding, the price formed through bidding shall be fixed in the form of contract price. Through contract management, the bid price can be effectively controlled. Contract price and payment terms are one of the core terms of economic contracts, which play an important role in the process of contract negotiation, signing, implementation and management. Therefore, after the bidding contract price is determined, we can change the thinking that we used to attach importance to schedule and quality control and ignore cost control. For the projects started and completed in the same year, the design department, the construction enterprise and the material supply department may, according to their respective contracting scope, adopt a fixed lump sum contract, and the price shall be guaranteed from beginning to end. Unit price contract can be used for large-scale cross-year projects or projects with incomplete design documents and uncertain quantities. For projects with unclear price trends that cannot be guaranteed at one time, according to international practice, some projects may or may not be guaranteed. We can also stipulate the scope of price adjustment and the calculation formula of price adjustment in the contract to reduce the risk. (3) The implementation of quota design involves three aspects: design, material procurement and construction management during the project investment and construction period. Design quality plays a decisive role in project investment benefit and project cost. The engineering design stage is the first stage to form the engineering price. At this stage, there are many opportunities to save investment, with large amount and low cost. Project quality, construction period, project function, project life and project investment return rate are all expressed in the form of technology and investment expenses in the design stage. At present, budget management often only pays attention to the cost management in the construction stage, but ignores the cost management in the design stage and material procurement stage, so it is inevitable that the budget exceeds the budget and the settlement exceeds the budget. Under the mechanism of project bidding, the characteristics of engineering design work are that technology determines economy and economy restricts technology. Therefore, quota design must be implemented to effectively control the bidding price of the project, which not only effectively controls the design scale, design standard, design depth, engineering quantity and investment. (4) Improve the material procurement management system and gradually connect with the market. In the construction and installation project, the material cost accounts for about 70% of the construction and installation project cost. In the installation project, equipment costs also account for a large proportion. Therefore, another factor that affects the project bidding price is the material procurement management system. In order to make the market price formation mechanism work effectively, it is necessary to have a suitable material procurement management system. At present, in the project cost management, the commonly used calculation basis for calculating the main material cost is the XXXX annual material budget price book compiled by the local construction committee, and the difference between the actual supply price and the price book will be filled in when the settlement is made. This management method can't control the procurement channels and prices, and can't control the cost in advance, which leads to the uncontrollable project investment, and the project settlement price often exceeds the estimated budget price or bidding contract price. Therefore, under the condition of market economy, both the owner and the contractor should purchase materials within the range of variety, quantity, quality and price stipulated in the tender offer or contract, and strive to reduce the cost of equipment and materials. For example, the implementation of price comparison procurement management, to shop around, the purchase price can not be higher than the budget price, cost price; In addition, the internal procurement audit system should be established and improved, and the decision-making power, execution power and audit power should be separated, so as to effectively control the project cost. 5. Engineering claim is another important work of bidding price control. Another feature of project bidding price control is project claim management. Claim is a legal right endowed by law and contract. It is necessary to establish a sense of claim, attach importance to claim, be good at claim, and establish and improve the claim management mechanism. In the current budget management system, the method of budget plus design is often used for settlement, which is an ex post accounting method. In a project subject to tender, the price should be determined in the form of a contract, and losses caused by design changes, workload beyond the scope of the contract, unforeseen expenses, force majeure and the other party's breach of contract should be protected by way of claims. Therefore, the claim of the project subject to tender has its own unique law, which is a dynamic control method of working first and then accounting, working first and then accounting, or accounting while working. The contractor is required to have a strong sense of management, and always pursue the fundamental purpose of expanding economic benefits from the conclusion of the contract to the completion of the performance, and all activities are aimed at achieving this fundamental purpose. The contractor should give full play to his subjective initiative, don't wait until he loses money to find a way, but take the claim as an important way to improve economic benefits, consider the measures to be taken before the incident, make preparations in advance, and actively study ways to use and control risks. Within the claim limit, according to the claim procedure and reliable evidence, put forward the reasons and contents of the claim and prepare the claim documents. To sum up, under the condition of market economy, bidding project is a systematic project, involving all aspects, and its price formation mechanism has its inherent characteristics and operating rules. Therefore, the price should be carefully calculated and controlled according to the characteristics and operating rules of the bidding project, so as to improve the competitiveness, not only ensure the project to win the bid, but also ensure that certain economic benefits can be achieved.

For more information about project/service/procurement bidding, and to improve the winning rate, please click on the bottom of official website Customer Service for free consultation:/#/? source=bdzd