In this issue:
Zhengzhou revised the administrative measures for the agency establishment of government investment projects
It clarifies the scope of application of the agency system, stipulating that construction projects with a total investment of more than 30 million yuan must implement the agency system, and construction projects with a total investment of less than 30 million yuan can also implement the agency system. The agency construction system is divided into two modes: direct agency construction and entrusted agency construction, as well as two modes: whole-process agency construction and construction implementation. At the same time, the measures also stipulate the selection procedures, fund management, reward and punishment system of the construction project.
In the third quarter, urban investment accounted for 60% of the land
In the third quarter of 2024, the proportion of land acquired by urban investment will climb to 60%, an increase of 17 percentage points and 9 percentage points respectively compared with the first and second quarters, and if compared with the same period in the past three years, the proportion will be about 15-20 percentage points higher.
The partner program of the agency construction enterprise has achieved initial results
Judging from the published data, the partner plan has a significant role in obtaining project information: the amount of new information added by enterprises such as Green Pipe, CIFI and Jinke has exceeded 1,000, and the information channels for agent construction projects have been significantly expanded; Due to the cautious requirements for obtaining projects, projects need to go through layers of screening, and the number of final promotion and actual implementation is limited, and CIFI Construction and Management has performed relatively well in project promotion, introducing 219 partners, promoting 191 projects, and signing 16 new projects.
Agent construction enterprises to increase the integration of resources
Due to the more fierce competition and increased difficulty in incremental competition this year, the agency construction enterprises have concentrated on increasing the integration of resources: Beijing Urban Construction Group, Bright Management, Bluetown Group and many other enterprises continued to expand upstream and downstream resources by signing cooperation agreements with different partners in the third quarter, laying the foundation for future acquisition of projects.
Winning projects in the third quarter increased by 50% year-on-year
In the first three quarters of 2024, 366 projects won the bid, a year-on-year increase of 28%, of which 126 projects won the bid in the third quarter, an increase of 50% year-on-year, and basically the same as in the second quarter. In terms of quarters, the number of bid-winning projects in each quarter of this year is relatively stable, and there is a significant year-on-year increase.
1
Industry policy
The implementation of the detailed rules for the establishment of the government on behalf of the government has been accelerated
The construction of affordable housing is under pressure in the short term
1. Provincial and municipal regulations on agency construction continue to be introduced, focusing on the revision of system norms and the implementation of detailed rules
In the third quarter of 2024, a total of 9 provinces and cities (including districts and counties) have issued a notice on the system and specifications for the agency construction of government investment projects, as well as the detailed notice on the specifications for the agency construction bidding. On the one hand, the management system of local government investment projects has been gradually improved, and on the other hand, the policy focus is on the refinement of the bidding specifications for the construction and the promotion of market-oriented construction.
In the first three quarters, a total of 22 (including districts and counties) issued relevant policies on behalf of the government, and the pace of policy introduction in the third quarter has accelerated compared with the first and second quarters.
Among them, Zhengzhou, a core second-tier city, has revised the Administrative Measures for the Agency Construction of Investment Projects of Zhengzhou Municipal Government issued in 2022 after the promulgation of the Administrative Measures for the Agency Construction of Investment Projects of the Provincial Government of Henan Province (the first quarter), which is reflected in:
First, expand the scope of agency construction. The office and technical housing projects of organs, public institutions and people's organizations without infrastructure institutions will be included in the agency system. Second, clarify the investment criteria. It is stipulated that projects of more than 30 million yuan must be built on behalf of others, and projects of less than 30 million yuan and meet specific conditions can apply for agency construction. Third, the introduction of direct agency construction mode: by the municipal key project construction promotion center directly as the agency construction unit, or entrusted to the professional unit to carry out the construction. Fourth, strict selection procedures: the municipal development and reform department of the primary selection of the construction of the project, approved by the government after implementation. Fifth, the award standard: for the project that has won the national or provincial quality engineering award, the reward can be given no more than 2 times the project construction management fee, up to 5 million yuan, and does not affect the total budget of the project.
In addition, following the end of the second quarter, the Hunan Provincial Development and Reform Commission publicly solicited the "Hunan Provincial Government Investment Project Agency System Management Measures (Draft for Comments)", in July, Hunan Province revised the standard bidding documents for government investment project agency construction units (2024 Edition) (Trial), focusing on expanding the scope of expert selection, optimizing the comprehensive bid evaluation method, and improving part of the document.
On the whole, we believe that there are problems in government investment projects, such as insufficient coordination between project management departments, large arbitrariness of project changes, and non-standard project management. In order to improve the strict and scientific government investment and construction project management system, clarify the responsibilities, rights and interests of the project legal person and the relevant responsible subjects, further standardize the supervision and management of government investment and construction projects, ensure the quality of the project, control the cost of the project, and improve the efficiency of government investment, the introduction of the "management measures" is indeed necessary, and it is expected that more provinces and cities will improve and update their government investment system in the future.
2. The focus of the work of ensuring the delivery of the building remains unchanged, and the construction of affordable housing is under pressure by the "government collection and storage" (omitted)
2
Land transaction
In the third quarter, 60% of the land was acquired by urban investment
9 percentage points increase from the second quarter (slightly)
3
Enterprise insights
The partnership program is paying off
The integration of resources between enterprises has been strengthened
1. In the third quarter, the agency construction partners continued to advance, and the project implementation effect was remarkable (omitted)
2. The company has increased the integration of resources, and upgraded from single project expansion to group strategic cooperation
Cooperation with potential partners mainly includes cooperation between the government/urban investment and investors, which plays the greatest role in obtaining projects and is also the most important type of cooperation agreement signed by enterprises: in the third quarter, Beijing Urban Construction, Bluetown Group, Tengyun Zhuke, CIFI Construction Management, etc. signed cooperation agreements with potential partners. Before signing the agreement with Handan Urban Investment at the end of September, CIFI Construction Management had cooperated on three high-quality projects, and the successful resumption of the commission reflected the client's high recognition of CIFI Construction Management, and it is more likely that CIFI Construction and Management will continue to increase cooperation in the future.
The second is the cooperation with suppliers, such as Lanle Group and Zhejiang Construction Group, the first real estate network reached a cooperation agreement, Rundi Management signed a cooperation agreement with China Construction Northwest Institute, such cooperation is mainly to strengthen the integration of upstream and downstream resources, better achieve cost control.
Finally, the cooperation between the construction enterprises: In July, Wang Ke, CEO of Bluetown Group, led a team to Xiamen to discuss business cooperation with Bright Management Group and signed a strategic cooperation agreement. The main purpose of the cooperation between the construction enterprises is to share and learn from the business model and management experience, and to enhance their own soft power.
4
Key projects
CR Land delivered to Longhua Hospital
Gemdale Management Huya Headquarters Project was capped
1. China Resources Land's "6+2" agency construction track developed in an all-round way, and Longhua Hospital of Shenzhen Second People's Hospital was handed over
On August 8, 2024, Rundi Management announced on Weibo that Longhua Hospital, the Second People's Hospital of Shenzhen, which was built by China Resources Land throughout the whole process, was successfully handed over, Longhua Hospital is located in Guanhu Street, Longhua District, covering an area of 56,200 square meters and a construction area of 357,000 square meters. It is also a national-level regional medical center built by Shenzhen's key deployment plan.
In 2017, Longhua District Central Hospital officially launched its renovation and expansion to improve the medical environment and meet the new needs of patients and medical staff for the medical environment. As the agent of Longhua Hospital of Shenzhen Second People's Hospital, CR Land leads the project construction to high standards, high quality and high efficiency with its "fast, good, provincial and planned" agency construction management capabilities.
So far, CR Land has built a total of 24 medical and elderly care projects on behalf of the company, with a management area of more than 2.65 million square meters, covering the medical needs of about 7 million people, and has successively completed medical facilities such as Huazhong University of Science and Technology Union Shenzhen Hospital, Longhua District Central Hospital Surgery Building, Bao'an Chun TCM Treatment Hospital, and New Frontier United Family Hospital. It reflects CR Land's "6+2" full product line of continuous cultivation of hospital agency construction and improvement of comprehensive construction capabilities.
In addition, in the third quarter, CR Land won the bid for the overall relocation project of Xi'an Lintong District Traditional Chinese Medicine Hospital, the Sanjiu Yinhu Science and Technology Innovation Center project, and the Haitang River Water System Comprehensive Treatment Project, and delivered the Xi'an Chanba International Port Residential Project and Wanlv Lake Factory Project, which have developed comprehensively in the subdivision track of various types of projects.
2. The main structure of the project of Gemdale Management for the construction of Foshan Huya Global R&D Headquarters was capped
On September 19, Gemdale announced on Weibo that the Huya Global R&D Headquarters project built by Gemdale Management successfully held a topping out ceremony, and after the official capping of the main structure, the project will fully enter the critical period of fine decoration, curtain wall, mechanical and electrical construction.
The Huya Global R&D Headquarters project is located in the Nanhai area of Sanlong Bay, Foshan, with a total construction area of about 183,000 square meters, covering a more than 130-meter-high R&D headquarters tower and a 90-meter-high office tower.
The project was successfully signed in January 2022 and is the first sales-oriented commercial office whole-process management project of Gemdale Management, representing Gemdale Management to realize the layout of commercial business in the fields of public utilities, science and technology, finance, and Internet, and consolidating its industry position as a "leader in commercial office construction".
On November 10, 2022, the pile foundation project of the project was completed, and in the construction of the Huya project, Gemdale Management has begun to apply the engineering information management platform (the cockpit of the entrusting party) to realize the control from off-site to on-site, raw materials to engineering components.
On April 25, 2023, Gemdale Management organized a project management salon exchange meeting of Huya Global R&D Headquarters, which pointed out the direction and laid a solid foundation for the follow-up project management of Huya project through sharing and exchange activities such as experience sharing on design and construction cohesion, discussion on project planning and implementation, experience sharing on engineering management of Sangfor and Guangzhou Xinhua project, and discussion on multi-unit cross-construction management.
As a representative project of Gemdale Management to continuously develop new formats and expand new services, the Huya project adopts the integrated BIM design and construction method in the process of engineering construction, which greatly improves the efficiency of problem solving and the quality of the project. In terms of design management, high-premium products such as single-family enterprise mansions and style commercial streets were optimized, and the value of goods was increased by more than 1,000 yuan in the product planning and planning and design stages; In terms of cost management, Gemdale Management ensures sunny and efficient procurement through the bidding system and cost management platform, and realizes the dynamic management of cost data from target cost to settlement.
In recent years, Gemdale Management has successively built commercial representative works such as Xinhua Insurance Building in Guangzhou Financial City, Shenzhen Qianhai Financial Headquarters Building, Shenzhen Bay Super Headquarters Tower C, Foshan Huya Global R&D Headquarters Project and Shanghai Tian'an Financial Center, etc., which continue to lead in the field of commercial office construction and have great advantages in continuing to obtain commercial projects in the market in the future.
5
Bidding
The number of winning projects in the third quarter increased by 50% year-on-year
More than half are located in the Yangtze River Delta
1. In the third quarter of 2024, the number of bid-winning projects increased by 50% year-on-year, and the number of bid-winning projects in the first three quarters remained high
2. The bidders of the project are still mainly state-owned, and Greentown Management has won many bids, and China Resources Land has won a wide range of bids (omitted)
3. The proportion of projects in first- and second-tier cities has increased, and more than half of them are located in the Yangtze River Delta region (omitted)
(Source: CRIC Research Center)