Bidding engineering control price, maximum price, minimum price what is the difference?

Fixed amount of preparation basis, bidding, control price and the limitations of the highest bidding limit price analysis-work insurance network

Before the formal construction, based on the construction drawings of the project works of various types of cost estimates, is one of the main content of the project cost management work. These budget price types are more, including the tender price, bidding control price, the highest bidding limit price, etc., the practice will often be confusing, for the bidding management to bring trouble. At the same time, all kinds of budget price calculation basis mainly rely on the quota documents, the latter is a special management product of the planned economy, there are certain limitations and lagging.

So, here the first difference between the bidding price, bidding control price, the maximum bidding price concept connotation, and then analyze the limitations of all types of budget price under the quota system.

1, bidding

Bidding, is by the bidder or the bidder entrusted by the professional cost management organization, for the bidding project preparation of the reasonable basic price; is China's early bidding management and project cost management focus; bidding price, on behalf of the owner for the bidding project of the expected price for the evaluation of the offer has an important impact. Early bidding management activities, "the bottom" often as a tender offer and evaluation of the management of the core of the key factors: and the bottom of the closer the tender offer scores the higher, and the bottom of the farther away from the tender offer scores the lower; deviation from the bottom of the bidding more than a certain range of quotes for the bidding process, lose the qualification of competition.

Based on the "bottom" for the bidding price and evaluation of the management of the important impact of the bottom has a high degree of confidentiality requirements. But in practice, the bidding system has led to a large number of "rent-seeking corruption" and "backdoor operation" problem: bidders to send the bidding before the bidding by all means to inquire about the bidding, the owner, the bidding agency, the preparation of personnel, and even the government bidding management department for bribery; the bidding Bidding deliberately divulged bidding, joint bidding agencies to lower or raise the bid, market competition by "relationship" rather than strength, seriously disrupting the bidding market order.

In fact, the bottom of the bidding is a few countries with a planned economic system unique cost management concept. International project management practices, although the owner will also entrust the bidding agent or a professional cost management company for the cost estimate, but the estimated results only as a reference for the amount of construction investment and bidding price, and will not be used as the final bidding price and bid evaluation criteria.

In order to dilute the impact of the bidding price evaluation, China issued the "Regulations for the Implementation of the Bidding Law" stipulates that: the bidding price can only be used as a reference to evaluate the bidding, shall not be close to the bidding price as a condition for winning the bid, and shall not be bidding price over the bidding price up and down the range of the bid as a condition for vetoing the bid. In practice, "no bidding" also quickly replace "bidding" the main bidding management system.

2, bidding control price and the highest bidding price

At present, the domestic construction project bidding management is mainly used "no bidding", that is, the owner of the bidding project does not prepare bidding or even if the preparation of the bidding is not as a standard for bid evaluation, only as a price reference, by the bid evaluation committee to determine the successful bidder. Bidding documents by the evaluation committee to determine the winning bidder.

In the bidding system of construction project bidding based on the bottom, "bottom" is an important factor of quotation and bid evaluation, control the bidding price reasonableness. Into the stage of bidding without a tender, the bidder also needs a price index, the price of bidding activities will be controlled in a reasonable range, so as to efficiently use the construction funds, this price index that is the "bidding control price" or "the highest bidding limit".

Tendering control price & maximum bidding limit

Based on the "construction project bill of quantities pricing specification (GB50500-2013)", the bidding control price is the bidder according to the national or provincial, the industry construction department issued by the relevant basis for pricing and methods, as well as the preparation of the bidding documents and bidding bill of quantities, combined with the specific conditions of the project compiled. The maximum bidding price of the bidding project.

It can be seen that the bidding control price and the maximum bidding price is essentially the same, only in the direction of the bidder and the bidder and different. Of the bidders, the price factor is the bidding control price; Of the bidders, the price factor is the highest bidding limit.

Tendering control price vs bid

Tendering control price and bidding, as a bidding without bidding and bidding system under the two kinds of budget price, in the following aspects have a big difference.

1

Confidentiality and publicity. Under the bidding system, because the bidding has a direct impact on the evaluation results, the bidding in the bidding before the opening of the bid is not public, thus leading to a large number of rent-seeking corruption occurs, the bidder also exists intentionally high or low project cost phenomenon; without the bidding system, the bidding control price (the highest bidding price) need not be kept secret, the bidder in the bidding documents should be truthfully announced bidding control price, and need to be reported to the construction authorities for the record. Construction department for the record, more conducive to the openness and fairness of bidding activities.

2

The impact on bid evaluation. To bidding as the core of the bid evaluation system, the price of the bidding directly affects the bidding activities of the final evaluation results. No bidding in the tender, bidding control price is not involved in scoring, nor in the evaluation of the weight, only as a price indicator, play a role in controlling reasonable investment.

3

Price control. No bidding, bidding control price determines the upper limit of the bidder's offer, once the offer exceeds the bidding control price is abolished. With bidding, bidding is the bidder for the construction project investment in the heart of the expected price, the bidder's offer is closer to the bidding is more likely to win. Therefore, when all the bidders offer is higher than the base price, and the base price is closest to the price of the bidder can still win the bid, there will be no bidding phenomenon.

3, the bidding, bidding control price, the limitations under the fixed amount of preparation

From the bidding to no bidding, from the bidding price to bidding control price, China's construction project bidding management and project cost management has experienced a large development change. But from the root point of view, this change has not shaken the domestic fixed price management system has long been practiced at the root: whether it is the price or tender control price, the preparation of its basis for the planned economy period of the fixed management system. "Budget price" from the "market price", not conducive to the reasonable control of project investment, but also not conducive to the construction unit bidding competition.

Limitations of the quota system

The quota is the state in the planned economy, in order to strengthen the construction management, the rational arrangement of labor resources to develop a management and control system; is based on a certain period of time, the scope of the development of social productive forces to develop the production process of manpower, material resources, materials, consumption of a legal standard. Specifically in the field of construction engineering, that is, for the completion of a certain unit of measurement of structural components or sub-projects required for labor, materials, machinery and equipment, capital and other consumption of quantitative standards.

From the point of view of the development of the economic system, the quota system as a special management and control system in the planned economy, in the current rapid development of the market economic environment in the context of the existence of great limitations and lagging. The quota itself reflects the past period of time and the scope of the average level of productivity, to guide the current or future period of time of the project consumption measurement and pricing, regardless of the base price or tender control price is obviously detached from the market reality.

In particular, the preparation of the quota itself through the cost station, the quota station and other institutions, the main principle is to collect, summarize, study and analyze the relevant information and data of the past cases of the project, and then prepare the quota document. This kind of quota preparation method is time-consuming, the update frequency is slow, the time interval between two versions of the quota file is often up to more than ten years. To such a fixed standard to prepare the tender or tender control price, obviously lagging behind the market and the industry development status quo.

Tendering control price under the quota system

Tendering control price or the highest bidding limit, its main role is to bidding activities in a reasonable price control, acceptable range. Its own preparation method, basis will directly affect the bidding activities price control work of scientific and reasonable. The quota for the preparation of the bidding control price, with its own quota system with the lag and limitations: can not be the actual average level of the elements of the construction market, reasonable control of the construction of the project capital investment and bidding competition.

1

The bidding control price is much higher than the average market price, that is to say, it means that the bidding party's construction investment funds have not been reasonably utilized, the contractor will get more market profits, so it is easy to induce bid-rigging, crosstalk phenomenon;

2

The bidding control price is much lower than the average market price, that is, on behalf of the bidding party to set up the construction investment funds is unreasonable, the contractor will not be able to obtain market profits or even produce losses. Will not be able to obtain market profits or even incur losses, there is no one bidding for the phenomenon of abortive bidding.

In addition, from the perspective of market development, the bidding control price is detached from the actual production level of the market, some high-quality construction enterprises are difficult to win the competitive advantage of the market through their own technology, human resources, management strength, but in the competitive situation of the low price bidding by some lower than the cost price quotation of the low-quality construction enterprises eliminated, which is obviously out of the market is fair and reasonable. In the long run, construction enterprises for the smooth bidding constantly compressed costs, below-cost price quotes, business center of gravity from the enhancement of their own technology, talent, management strength, shifted to a low price in the early stage of the bidding, the later through the project changes, claims and other ways to profit, obviously not conducive to the rapid development of high quality of the construction industry.

July 24, 2020, the Ministry of Housing and Urban-Rural Development General Office of the issuance of the "project cost reform work program", proposed to "cancel the highest bidding limit according to the provisions of the quota pricing, and gradually stop the release of the budget quota", and since then around the response to the views of the central policy, and gradually cancel the quota pricing. This reform initiative has aroused heated debate in the industry, many public opinion propaganda called "big change".

In fact, the comprehensive consideration of the above quota management system, bidding and bidding control price preparation limitations, the seemingly sudden cost reform also seems to be traceable. Based on the quota preparation of the existing engineering pricing system, the future will inevitably be market inquiry, enterprise quotation market-oriented pricing system gradually replaced, so as to rationally control the construction investment, effectively activate the market vitality, and promote the construction industry's rapid development of high quality.