International engineering bidding is our first step to join the international engineering contracting market competition. China's smooth accession to the World Trade Organization, bringing us more and more to show their strength, improve the international market competition and project management level of opportunities for our international engineering contracting business in the severe test of survival of the fittest and the baptism of competition to obtain long-term development.
The main steps of the tender offer
Project bidding is the contractor's business activities in the first important link, the bid price is too high is unlikely to win the bid, too low will suffer economic losses. To make a good bid, basically do the following: inspect the site; materials inquiry; subcontractor selection; machinery and equipment rental, use of cost inquiry; clear preparation costs; determine the duration of the work; the development of the price of the quantitative list; calculation of direct costs; calculation of the bottom of the bid.
After the completion of the bill of quantities bidding, there is a part of the bill of quantities does not show the cost, such as foreman, supervision, staff, vehicles and office costs, these are required to be considered in the preparatory costs must be.
Precautions in the tender offer
It is well known that the cost is the center of project management, efficiency is the core of enterprise management, the development of enterprises must be to obtain profits as a prerequisite, in order to obtain profits must undertake more projects, and to obtain a good project, vote for a good bid is the most basic elements. So how can we make a good bid? We can focus on the following points:
1. Calculate the accurate price
The composition of the unit price of the offer, should contain the completion of the product required labor, materials, machinery and the required profit, these must have a comprehensive understanding of the market situation.
2. Get as many prices as possible
Generally speaking, to understand the 3 kinds of prices can be, but grasp a variety of prices than only grasp the 3 prices is much better, it is clear that from the 10 prices in the selection of the low price than from the 3 prices in the selection of the low price of the economy is much more.
3. Read the tender
Foreign engineering tender as part of the contract, it has three main elements: contract conditions and related instructions and requirements; preparation costs; bill of quantities.
Before pricing, it is very important to read this part, which generally includes the following:
Provisional payment: some items in the bill of quantities, the owner's estimator can not be sure of the amount of work, this is because the architect in the drawings, some items are still unclear, or the owner in the project may also be some trade-offs, and therefore the estimator is only based on the usual situation to make an estimate. The total price is given for the part in the bill of quantities. In the process of implementation of the project, if there will be reference to the unit price of the existing quotation or measured unit price, according to the actual amount of billing, the unit price of the quotation of these items on the ability to obtain a higher profit is of great significance.
Contingency fee payment: when the project occurs unforeseen costs, such as underground hidden works, in the implementation of the amount of work is much larger than the calculated value of the bill of quantities, or the project occurs when the larger additional items, the start of contingency fee. General engineering contingency can be set according to the project in the range of 5% to 10% of the base price, experienced appraisers, according to the importance of the project, the owner and the market situation to determine the project's base price, and then estimate the amount of contingency fees.
At the same time, it is necessary to find out what is the basis for doing the bill of quantities, whether or not to pay for price increases, whether or not the contracted period of time includes vacations and other issues.
Understanding these relevant instructions and requirements will play a positive and effective role in our quotation and site survey.
4. Find out the errors in the bill of quantities
Carefully study the tender documents, to understand whether there are errors, which will serve as the contractor's advantage; careful study and review of drawings, most people understand the quality of drawings from the design to see whether there is something special, when the drawings look as if they were completed in a hurry, then you can be sure that there will be some omissions or the possibility of additions, subtractions Situation, which should be fully considered in the offer; on-site situation and the description of the bill of quantities for comparison, from which to find possible omissions or errors.
The above mentioned content is only a common problem in the tender offer, there may be a lot more have not been taken into account, but one thing is certain, these problems will affect the tender offer. Learning to take advantage of each other's mistakes or under-measurement will turn them into advantages in the bidding, you can get a bigger profit.
After the completion of the unit price summary of the bill of quantities, the contractor can derive the project in the implementation of the process of the total amount of labor, materials, machinery and other elements needed, so that the project can be clear about the completion of the time, the total cost of the project, the management of the site configuration, at the same time the project's insurance, bonding costs and so on will have a specific basis, so that the contractor can make a more reasonable preparation costs, a complete The contractor will be able to make a more reasonable and complete quotation for the preparation fee.
Preparation fee quote
Preparation fee (or translation of the start-up costs), mainly indirectly used for the cost of the project, this is a contractor for the project must pay for the cost of (the final owner will pay the contractor this money). This cost is subdivided into two parts, one related to time (duration) and one fixed item that occurs all at once and can be taken in all at once in the first estimate submitted to the owner.
Time-related items
Managers' salaries; managers' transportation, fuel, accommodation, annual awards, medical, insurance, etc.; compensation for work-related injuries, holiday overtime; service personnel (janitorial staff, drivers, cooks, etc.) costs; monthly water, electricity, telephone charges; headquarters office costs and monthly meeting costs; the cost of entry and exit of all kinds of machinery and tools (mixers, cars, tower cranes, generators, etc.). mixers, cars, tower crane generators, scaffolding, trolleys, carpentry tools, vibrators); various machinery maintenance costs, fuel costs, etc..
Fixed items incurred at one time
On-site office, staff office, dormitory, canteen construction costs; warehouses, fences, bathrooms, bulletin boards production costs, construction costs; construction signage, as well as the installation of the above items, transportation costs; temporary water and sewage pipelines, the laying of transmission lines, telephone installation costs; insurance, bonding, drawings costs, etc..
Generally, each bid includes these costs, some contracts may require more than these, but one thing must be clear, if the contractor does not take into account these costs in the bid, he will have to pay out of their own pockets. Therefore, the preparation fee should be reasonable and not too high, according to the site conditions, the degree of difficulty of the project, the overall consideration of the project's personnel, machinery, equipment, labor needs, material supply, etc., to determine the costs; if we do the above work, we should have reason to believe that the tender can truly reflect the implementation of the project throughout the process of the cost of the expenses, or to avoid the contractors getting into financial difficulties at a later date.
For the owner, the cheapest project is no change in the project, each change to increase the additional expenditure on the owner and the contractor may have additional income, and even on the arbitrary reduction of the project is too large, the contractor can also claim the loss of profits resulting from the reduction; and for the contractor, the best way to make money is to minimize the offer mistakes, strengthen the claims, reduce the Project cost, accelerate the construction progress. This can avoid the waste of funds, reduce the consumption of funds, maximize the profit. This needs to be fully considered by the contractor in the implementation process.
International Engineering Bidding Tips
The unit price can be increased for the items that are not clear or have errors on the drawings and are estimated to be modified in the future; the price can be quoted lower for the items with unclear description of the contents of the project for the benefit of future claims.
As in the air-conditioning installation project, whether the equipment contains automatic control system in the drawings is not clear, and in the actual construction, it is likely to be added, then the price can be adjusted downward, in the future when the additional can be recovered by claiming the difference in price.
The tentative works, estimated to occur in the future works, the offer can be reported higher, otherwise, lower. For example: the fittings for water and sewage installation works are generally tentative in quantity, it is possible to increase the price appropriately, and this has little impact on the quotation, but if the quantity increases, it can be very effective. These elements require us to have a certain ability to predict.
For only fill in the unit price without quantity of the project, the unit price can be quoted higher, because it will not affect the total bid price, and once the project is implemented can be more profit.
Find out the bill of quantities and drawings on the difference between the project, measuring the amount of possible changes in the project, the amount of work is expected to increase the unit price of the project will increase, while the amount of work is expected to reduce the unit price of the project down. However, it should be noted that the magnitude of this adjustment should not be too large, generally within 10%, too high may be treated as a waste of tender.
Report the unit price of sub-projects, common items such as reinforced concrete, brick walls, plastering, painting, etc. unit price can be set lower, for uncommon items such as furniture, grid fences, etc. unit price can be appropriately increased.
Changing the unit of measurement to improve the unit price, such as reinforced concrete from cubic meters to square meters, while breaking down the reinforcement for kilograms, templates for square meters and other units of measurement; and then lattice windows from square meters to the number of blocks, etc., due to the unit changes, the unit price can be increased or re-measurement, these are conducive to the realization of the claim.
Previously, we should do some preparatory work in the bidding process to explain, understand these contents is not only to vote for a good bid to make preparations for the more important is to provide a basis for future claims. As we all know, there are three main forms of foreign engineering contracts; fixed lump sum contract, fixed unit price contract and cost plus honorarium contract, each form of contract can be subdivided into a variety of different types, the more commonly used form of contract for the fixed unit price contract. Regardless of the form of contract, in the offer have ****, so the contractor in the offer, which items pricing is appropriate high, which can be lower, there are certain skills, master this skill, will determine to a certain extent, whether the contractor can win the bid and whether to get the best interest, in other words, can give the future project claims provide a favorable basis for obtaining the best profit.
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