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MindMap Gallery First Class Cost Engineer Pricing Chapter 4 Section 2 Preparation of Tender Quotation

First Class Cost Engineer Pricing Chapter 4 Section 2 Preparation of Tender Quotation

2020 Level 1 Cost Engineer Pricing Chapter 4 Section 2 Preparation of Bid Quotation, Preparation of Bid Quotation, Inquiry and Quantity Review, Bid Quotation Preparation Principles and Basis, Bid Quotation Preparation Method and Content, and Preparation of Bidding Documents.

Edited at 2021-06-08 09:16:08

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First Class Cost Engineer Pricing Chapter 4 Section 2 Preparation of Tender Quotation

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Outline

cost group pricing method
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Total investment in construction projects
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Chapter Four Section 2 Preparation of Tender Quotations

Preliminary work for bidding and quotation

Study tender documents

Instructions to bidders

Prevent bids from being rejected

Contract conditions

Contract background analysis: how to share risks and how to divide them

Contract form analysis: contracting method and pricing method

unit price contract

lump sum contract

cost plus fee contract

Contract clause analysis

Technical standards and requirements analysis

Drawings and Bill of Quantities

Directly related to quotation

Investigate project site

Natural conditions, construction conditions and other conditions

Inquiry and quantity review

Inquiry

Inquiry channels

Production factor inquiry

Material inquiry

Construction machinery inquiry - leasing or purchasing

Labor inquiry

Formed labor service company

More expensive and more reliable

The labor market recruits scattered labor

Low cost and unreliable

Subcontracting inquiry

Including the subcontractor’s project quality, credibility and dependability; quality assurance measures and quotation

Review project quantities

Bidders should calculate the main bill of quantities based on bidding instructions, drawings, geological data and other bidding documents, and review the bill of quantities.

Even if there is an error, the bidder cannot modify the work quantities in the bill of quantities, because modifying the list will cause the bid document to be considered as unresponsive to the bidding document during bid evaluation and be rejected.

In response to omissions or errors in the quantities of work in the bill of quantities, whether to submit modification suggestions to the tenderer depends on the bidding strategy. The bidder may submit the proposal to the tenderee, who shall make unified revisions and notify all bidders of the modifications.

Through the review of project quantities, the quantity of ordering and purchasing materials can be prepared and determined.

Principles and Basis for Preparing Tender Quotations

Tender quotation preparation principles It cannot be higher than the bidding control price set by the tenderer, otherwise the bid will be canceled directly.

The principle of independent quotation

The bid price is determined independently by the bidder, but the mandatory provisions of the list pricing specifications must be followed

No less than cost principle

The bidder's quotation shall not be lower than the cost. If the bid evaluation committee determines that the bidder has bid below the cost, it shall reject the bidder's bid.

risk sharing principle

The bidding documents shall be based on the division of responsibilities between the issuing and contracting parties specified in the bidding documents as the basis for calculating the bid price.

The principle of giving full play to one's own advantages

Taking construction plans and technical measures as the basic conditions and enterprise quotas as the basic basis

scientific rigor

Scientifically rigorous, concise and applicable

Basis for preparation of bid quotation

Textbook P200

Tender quotation preparation method and content

Preparation of price lists for sub-projects and measures

Sub-item projects and unit price measures Preparation of project list price list

The comprehensive unit price includes the human resources and machine management required for a specified list of items and takes into account a reasonable allocation of risk costs. There are no fees and taxes as there are separate lists for fees and taxes

Comprehensive unit price = labor cost, material and engineering equipment cost, construction machinery and tool usage fee, enterprise management fee, profit

Things to note when determining the comprehensive unit price

Based on the description of project characteristics

During the bidding process, the description of the project characteristics in the bidding bill of quantities shall prevail; during the construction process, both parties shall re-determine the comprehensive unit price according to the characteristics of the project to be implemented and in accordance with the contract.

Handling of provisional valuation of materials and engineering equipment

Materials and engineering equipment with tentative estimates in other project lists in the bidding documents shall be included in the comprehensive unit price of the list items based on their tentative unit prices.

Consider reasonable risks

When the content and scope of the risks are within the scope specified in the bidding documents, the comprehensive unit price shall not be changed and the contract price shall not be adjusted.

For price risks mainly caused by market price fluctuations

Both parties to the contracting party shall clearly stipulate the scope and magnitude of such risks in the bidding documents or contracts. The generally adopted method is that the contractor bears no more than 5% of the material risk and no more than 10% of the construction machinery and tool usage fee risk.

Regarding project taxes, fees, and labor costs resulting from the promulgation of laws, regulations, rules, or relevant policies

The contractor should not bear such risks, they are all borne by Party A

Risks that the contractor can independently control based on its own technical level, management, and operating conditions

All borne by the contractor

Market risks are shared by both parties Legal policy risks shall be borne by Party A Contractor's technical risks shall be borne by Party B

The labor costs here are borne by Party A due to fluctuations caused by regulations and policies. However, if the labor cost adjustment is caused by the supply and demand sides of the labor market, Party B will be responsible for it.

Steps and methods for comprehensive unit price determination

Determine the basis for calculation

There are mainly consumption indicators (the amount of human resources required in the consumption quota) and unit price of production factors (market price of human resources).

Enterprise quotas should be used when calculating. If there is no enterprise quota, you can refer to national, regional, and industry quotas that are similar to the actual level of the enterprise, and adjust the unit usage of human resources and machines for the list items. The unit price of various talent machines should be determined comprehensively based on the inquiry results and market conditions.

Comprehensive unit price calculation basis for tender quotations

Consumption indicator (number of human resources and machines)

Enterprise quotas National and regional industry quotas

Unit price of production factors (personnel and machine price)

Inquiry results Market conditions

Analyze the engineering content of each checklist item

Calculate project quantity and inventory unit content of project content

List unit content = quota engineering quantity of a certain project content/list engineering quantity

Calculation of usage fees for personnel, materials and machines by sub-item

The usage of a certain resource in each unit of measurement inventory item = the quota unit usage of the resource * the inventory unit content of the corresponding quota entry

Preparation of total price measure item list and price list

The content of the measure items shall be determined based on the list of measure items provided by the bidder and the construction organization design or construction plan drawn up by the bidder when bidding.

The project fee for measures shall be determined independently by the bidder, but the safety and civilization construction fee must be priced in accordance with regulations and shall not be used as a competitive fee.

Preparation of other project lists and price lists

Provisional Amount Detailed List Calculated according to the amount of the bidding document

It is to be filled in by the tenderer, or only the total tentative amount can be listed. The bidder will include the above tentative amount into the total bid price.

Temporary unit price estimate and adjustment table for materials (engineering equipment) Calculated according to the amount of the bidding document

The tenderer shall fill in the tentative unit price and explain which list items it will be used for. The bidder shall include the above tentative unit price into the comprehensive unit price quotation of the bill of quantities.

Professional project tentative valuation and settlement price list Calculated according to the amount of the bidding document

The tenderer will fill in the tentative estimate, and the bidder will include the tentative estimate into the total bid price; during settlement, fill in the settlement amount as stipulated in the contract.

day work schedule Independent quotation

The project name and quantity shall be filled in by the tenderer; When preparing the bidding control price, the unit price shall be determined by the tenderer; When bidding, the unit price is quoted by the bidder independently, and the total price is calculated based on the tentative quantity and included in the total bid price.

General Contracting Service Fee Pricing Schedule Independent quotation

When preparing the bidding control price, the rate and amount shall be filled in by the tenderer; When bidding, the rate and amount shall be quoted by the bidder independently and shall be included in the total bid price.

The tentative unit price of materials (engineering equipment) enters the comprehensive unit price of the list items and is not summarized here.

Preparation of fee and tax item lists and pricing tables

Summary of bid prices

The total price of the bidder should be consistent with the amount of points, measures, fees and taxes that make up the list. If the bidder has any preferential price for the bid, it should be reflected in the comprehensive unit price of the corresponding list item.

Prepare bidding documents

Contents of tender documents

Regulations to be followed when preparing tender documents

On the basis of meeting the substantive requirements of the bidding documents, the appendix to the bidding letter can make a commitment that is more attractive to the bidder than the bidding documents.

Bidding documents should respond to the substantive content of the bidding documents

The bidding documents shall be signed by the bidder's legal representative or his authorized agent and stamped by the unit.

If the original and copy of the bidding document are inconsistent, the original shall prevail.

Unless otherwise provided in the bidding documents, bidders may not submit alternative bids. If bidders are allowed to submit alternative bids, only the alternative bids submitted by the winning bidder may be considered.

Submission of tender documents

The bid documents shall be sealed and delivered to the bidding location before the specified deadline for submission of bid documents. No unit or individual may open the bidding documents before the bid opening. Tender documents that are delivered after the deadline for submission of tender documents required in the tender documents or are not delivered to the designated location are invalid tender documents and will not be accepted by the tenderer.

Bid bond

When to pay and how much to pay

When submitting the bidding document, submit it in the form of a specified amount as an integral part of the bidding document.

No more than 2% of the estimated project price

When to withdraw and how much to withdraw

Within 5 days after the tenderer and the winning bidder sign the contract

Refund the bid security deposit and bank deposit interest for the same period to the successful bidder and the unsuccessful bidder.

What will happen if we don’t meet?

The bid document was rejected

Under what circumstances will you not withdraw?

Withdraw or modify the bidding documents within the bidding period

After receiving the bid winning notice, refuse to sign the contract without justifiable reasons

The winning bidder failed to submit a performance guarantee as stipulated in the bidding documents.

Bid validity period

Calculated from the bid deadline

Organize the time required for the bid evaluation committee to complete the evaluation

Time required to determine winning bidder

Time required to sign a contract

The bid validity period for general projects is 60-90 days, and the bid deposit shall be consistent with the bid validity period.

Submission method

Restrictions on bidding behavior

consortium bidding

A consortium agreement should be signed in the format provided in the bidding documents. Each party should designate a leader and submit a letter of authorization signed by the legal representatives of all consortium members to the village recruiter.

After the parties to the consortium sign a joint bidding agreement, they may no longer bid individually in their own names, nor may they form a new consortium or participate in the bidding of other consortiums for the same project.

If the tenderer accepts the bid of a consortium and conducts pre-qualification, the consortium shall be formed before submitting the pre-qualification application documents. If the pre-qualification is deducted from the consortium to increase, decrease or change members, the bid will be invalid.

For a consortium composed of units in the same major, the qualification level will be determined based on the unit with the lower qualification level.

If a consortium bids, the bid deposit shall be submitted in the name of each party to the consortium or the leader of the consortium, and shall have the power to negotiate with each member of the consortium.

Collusive bidding

Belongs to tender

Negotiation between bidders on the substantive content of bid documents such as bid quotations

The bidders agree on the winning bidder

It is agreed among the bidders that some bidders will give up the bid or win the bid.

Bidders who are members of the same group, association, chamber of commerce, etc. negotiate their bids in accordance with the requirements of the group.

Other joint actions among bidders to win a bid or exclude a specific bidder

considered as bid

Tender documents of different bidders are prepared by the same unit or individual

The project management members stated in the bidding documents of different bidders are the same person

Bidding documents from different bidders are entrusted to the same unit or individual to handle bidding matters

The bidding documents of different bidders are unusually consistent or the bidding documents show regular differences.

Tender documents from different bidders are mixed

The bid deposits of different bidders are transferred from the account of the same unit or individual