Lecture 4 Engineering Valuation Methods and Bill of Quantities Specifications
First, the basic principle of project pricing
The basic principle of project pricing lies in the decomposition and combination of projects.
Sub-project cost = ∑ [basic construction unit quantity (quota project or list item) × corresponding unit price]
1. Engineering metrology
2. Project pricing
| Fundamentals of engineering pricing | Engineering metrology | Engineering projects divide | Preparation of project budget estimates - Project quota division - Calculation rules of project quota - Calculation of physical quantity of project Preparation of bill of quantities - classification of bill of quantities measurement specification - calculation rules of bill of quantity measurement specification - physical calculation of quantities |
| Calculation of engineering quantities The physical quantity of the project is the basis of the valuation | |||
| Project pricing | Unit price determination | The unit price of the material | Man, material, machine, material unit price = ∑ (human machine consumption × human machine unit price) |
| Combined unit price | People, materials, machines, pipes, profits, wind | ||
| Total price calculation (Step-by-step summary) | The unit price of the material | Direct engineering fees (people, materials, machines) + enterprise management fees + profits + fees + taxes | |
| Combined unit price | Sub-project costs + measure project fees + other project fees + fees + taxes |
Exercise: The correct of the following statements about project valuation is ( ).
A. The calculation of the project cost includes two links: calculating the quantity of the project and the set of quotas
B. Construction and installation project fee = Σ Basic structural unit engineering quantity × corresponding unit price
C. Project valuation includes the determination of the unit price of the project and the calculation of the total price
D. The unit price of the project in the project valuation refers only to the comprehensive unit price
Answer: C
2. Project pricing standards and basis
| Project quota | The prediction and estimation of construction investment in each stage of the early stage of project construction can only be used as an auxiliary basis for the formation of construction product prices in the construction transaction stage |
| Bill of quantities is based on | Contract price formation and subsequent contract price management phases |
Third, the basic procedures for project pricing
(1) The basic procedures for the preparation of project budget estimates
(2) The basic procedures for the valuation of the bill of quantities
Sub-project project fee = ∑ (sub-project quantity× corresponding sub-project comprehensive unit price)
Measure project fee = ∑ the measure project fee
Other project fees = provisional amount + provisional valuation + daily work + general contracting service fee
Unit project quotation = sub-project project fee + measure project fee + other project fee + fee + tax
Single project quotation = ∑ unit project quotation
The total quotation of the construction project = the quotation of ∑ single project
The comprehensive unit price refers to the labor costs, materials and engineering equipment costs, construction machinery and tools use fees and enterprise management fees, profits, and risk costs within a certain range required to complete a specified list of items. Bill of Quantities pricing activities cover the entire process of construction bidding, contract management, and completion delivery.
Fourth, the project quota system
The project quota is the quantitative standard for the quantity of resources consumed by qualified building installation products that complete the specified unit of measurement.
1. Classification of consumption content of production factors reflected by quotas
(1) Labor consumption quota, referred to as labor quota, also known as artificial quota, its main form is the time quota, but it is also manifested as a production quota. The time quota and the production quota are reciprocal to each other.
(2) Material consumption quota, referred to as material quota.
(3) The mechanical consumption quota is based on a mechanical work class as the unit of measurement, so it is also called the mechanical bench class quota. The main manifestation of the mechanical consumption quota is the mechanical time quota, which is also expressed in the output quota.
2. Classification according to the preparation procedures and use of quotas
| Construction quota | Budget quotas | Estimates for quotas | Budget estimates | Investment estimation indicators | |
| object | Construction process or Basic process | Sub-projects and Structural components | Expanded sub-projects or enlarged structural components | Unit Engineering | Construction Projects, Single project, unit project |
| use | weave Construction budget | weave Construction drawing budget | Expansion of the establishment Preliminary design estimates | weave Preliminary design estimates | At the project proposal and feasibility study phase Prepare investment estimates |
| Project division | The finest | thin | Thicker | coarse | Very coarse |
| Quota level | Average advanced | average | |||
| Quota nature | Productive quotas | Pricing quotas |
Exercise: As an important part of the project quota system, the budget quota is ( )
A. The number of labor, materials and mechanical bench shifts required to complete a certain unit of measurement of a certain construction process
B. The number of labor, materials, construction machinery shifts and their cost standards required to complete a certain unit of measurement qualified sub-projects and structural components
C. The number of labor, materials and construction machinery shifts required to complete the qualified expansion of the sub-project and the cost standards
D. Complete a prescribed unit of measurement for the cost of building installation products
Answer: B
3. Divided by major
4. Classified according to the editor-in-chief unit and management authority
National unified quota, industry unified quota, regional unified quota, enterprise quota, supplementary quota.
The use of enterprise quotas within enterprises is a sign of the comprehensive quality of enterprises. The enterprise quota level should generally be higher than the current national quota, and the enterprise quota is playing an increasingly important role as the basis for the construction enterprise to bid and quote for construction projects.
Fifth, the bill of quantities valuation and measurement specifications overview
| Bill of Quantities | Tender Bill of Quantities | Prepared by the bidder in accordance with national standards, bidding documents, design documents, and the actual situation of the construction site; It shall be prepared by a tenderer with the ability to compile or a project cost consultant or bidding agent entrusted with corresponding qualifications; Bidding shall be made by means of a bill of quantities, which must be an integral part of the solicitation documents and whose accuracy and completeness shall be the responsibility of the tenderer. |
| Listed price Bill of Quantities | The price indicated as part of the tender documents and confirmed by the contractor. |
(1) The scope of application of the valuation of the bill of quantities
| Construction projects invested with state-owned funds | Bills of quantities must be used |
| Construction projects invested by non-state-owned funds | It is advisable to use bill of quantities for pricing |
| Construction projects that do not use bill of quantities | Implement other provisions in the pricing specification |
(2) The role of the bill of quantities in the valuation
1. Provide a level playing field
2. Meet the needs of competition under the conditions of market economy
3. It is conducive to improving the efficiency of project pricing and can truly achieve rapid quotation
4. It is conducive to the allocation of project funds and the final settlement of project costs
5. It is conducive to the owner's control over the investment
6. List of sub-project projects
The list of sub-project projects must indicate the project code, project name, project characteristics, unit of measurement and quantity.
(1) Project code
The item code for the partial bill of quantities is set in a five-level code, represented by twelve-digit Arabic numerals, without heavy signs.
| Level 1 (2nd place) | Professional engineering code |
| Level 2 (2nd place) | Appendix Classification Sequence Codes |
| Level 3 (2nd place) | Partial engineering sequence code |
| Level 4 (3rd place) | Sub-project name sequence code |
| Level 5 (3rd place) | Bill of Quantities item name sequence code |
(2) Project name
The project name of the sub-item bill of quantities shall be determined according to the project name of the appendix of each professional engineering measurement specification combined with the actual situation of the proposed project.
(3) Project characteristics
The characteristics of the project are the essential characteristics of the value of the sub-projects and measure projects themselves, the indispensable and important basis for determining the comprehensive unit price of a list project, the basis for distinguishing the list items, and the basis for performing contractual obligations.
There is also a description of the "work content" of each list item in the appendix to the various professional engineering metrology specifications. The content of work refers to the specific work and operational procedures that may occur to complete the list of items, but when compiling the partial item bill of quantities, the work content usually does not need to be described.
(4) Units of measurement
If each major has a special unit of measurement, when there are two or more units of measurement, the unit that is most suitable for expressing the characteristics of the item and facilitating the measurement should be selected according to the characteristics of the project in the list of quantities.
(5) Calculation of the quantity of the project
The quantity of all inventory items shall be based on the physical quantity and calculated on the net value after completion; When bidding for quotations, bidders should consider various losses in construction and the amount of work that needs to be increased in the unit price.
When preparing the bill of quantities, the compiler should supplement the list items that are not included in the appendix to the measurement specification.
(1) The coding of supplementary items shall be determined in accordance with the provisions of the measurement specification. The code of the supplementary project consists of the code of the metrology specification with B and three Arabic numerals and shall be prepared sequentially from 001 onwards, and the project of the same tender project shall not be recoded.
(2) The project name, project characteristics, unit of measurement, quantity calculation rules and work content of the supplementary project shall be attached to the bill of quantities.
(3) Report the supplementary projects prepared to the provincial or industry engineering cost management agency for the record.
Exercise: Regarding the preparation of the partial item bill of quantities, the correct one is ( ).
A. The part of the construction work quantity that is greater than the amount of the project calculated according to the calculation rules shall be considered by the bidder in the comprehensive unit price
B. When preparing the sub-item bill of quantities, the content of the work must be described
C. When giving two or more units of measurement for a list item in the valuation specification, the most convenient unit for calculation should be selected
D. When the bill of quantities of the same lot contains multiple unit projects with the same project characteristics, the same project code can be used
Answer: A
7. List of measures
| Can be calculated Engineering quantity Measure items | It is prepared in the form of a partial item bill of quantities | Scaffolding engineering, concrete formwork and brackets (braces), vertical transportation, ultra-high construction increase, large mechanical equipment in and out of the field and installation and demolition, construction drainage, precipitation | Priced at a comprehensive unit price, listing the project code, project name, project characteristics, unit of measure, and quantity. |
| Cannot be calculated Engineering quantity Measure items | It is compiled in terms of "items" | Safe and civilized construction, night construction, non-night construction lighting, secondary handling, winter and rainy season construction, above ground and underground facilities, temporary protection facilities of buildings, completed project and equipment protection | In the "calculation foundation", the safe and civilized construction fee can be "fixed base price", "fixed labor fee" or "fixed labor fee + fixed mechanical fee", and other projects can be "fixed labor fee" or "fixed labor fee + fixed mechanical fee"; according to the measures calculated according to the construction plan, only the "amount" value can be filled in. |
Exercise: The following measures should be compiled according to the method of compiling the bill of quantities of the sub-items ( ).
A. Increase in ultra-high construction
B. Temporary protection facilities for buildings
C. Entry and exit of large machinery and equipment and installation and dismantling
D. Completed works and equipment protection
E. Construction drainage, precipitation
Answer: ACE
8. List of other projects
Other items include provisional amounts; Provisional valuation (including provisional unit price of materials, provisional unit price of engineering equipment, and provisional valuation of professional engineering); Counting daily workers; EPC service fee.
(i) Provisional amount (may or may not occur)
(2) Provisional valuation (inevitable occurrence, temporary price can not be determined)
Provisional valuation refers to the amount of materials, unit prices of engineering equipment and professional works provided by the bidder in the bill of quantities to pay for materials that are bound to occur but cannot be determined for the time being, and the amount of professional projects, including the provisional unit price of materials, the provisional unit price of engineering equipment and the provisional value of professional projects.
The provisional valuation of professional projects should generally be a comprehensive provisional valuation, including labor costs, material costs, construction machinery use fees, enterprise management fees and profits, excluding fees and taxes.
(3) Counting daily workers
(4) General contracting service fees
| List of other items and summary tables of pricing | The provisional unit price of materials (engineering equipment) enters the comprehensive unit price of the list project and is not summarized here. |
| Schedule the amounts for the time being | To be filled in by the tenderer, it may also only list the total provisional amount, and the bidder shall include the above provisional amount in the total bid price. |
| Provisional unit price of materials (engineering equipment) and adjustment table | The bidder shall fill in the "provisional unit price" and indicate which list items are used, and the bidder shall include the above provisional valuation in the comprehensive unit price quotation of the bill of quantities. |
| Provisional valuation and settlement price table of professional projects | The "Provisional Amount" shall be filled in by the Bidder, who shall include the "Provisional Amount" in the total bid price. At the time of settlement, the settlement amount is filled in according to the contract. |
| Daily work schedule | The project name and provisional quantity shall be filled in by the bidder, and the unit price shall be determined by the bidder when the bidding control price is compiled; when bidding, the unit price shall be quoted by the bidder independently, and the total bid price shall be calculated according to the provisional quantity and included in the total bidding price. At the time of settlement, the agreed price is calculated according to the actual quantity confirmed by the issuing and contracting parties. |
| EPC Service Fee Schedule | The project name and service content shall be filled in by the bidder, and when the bidding control price is prepared, the rate and amount shall be determined by the bidder; when bidding, the rate and amount shall be quoted by the bidder and included in the total bidding price. |
Exercise: Regarding the preparation of lists of other items, the correct one is ( ).
A. The provisional valuation of the project that needs to be included in the consolidated unit price of the sub-project bill of quantities is only the cost of materials
B. Provisional valuation is used to pay for materials and professional works that may or may not occur
C. The provisional valuation of professional works shall include all comprehensive unit price components except fees and taxes
D. The provisional amount is a provisional expense set by the bidder considering the unforeseeable and uncertain factors in the construction of the project
E. The list of daily workers is listed by the bidder, and the bidder fills in the quantity and unit price
Answer: CD
9. List of fees and taxes
Social insurance premiums and housing provident funds should be calculated on the basis of fixed labor fees.