According to the national regulations, the construction project cost is calculated according to the regional quota and market information price, and it is not allowed to go down. However, in the actual project contracting process, Party A will ask the contractor to let the profits go down, which is generally 3% to 18% of the total project cost (according to the algorithm stipulated by the state). The construction cost of Mianyang City, Sichuan Province has gone down by 24%, and there is basically no big profit.
When the state (province or city) prepares the budget quota, the basic profit is guaranteed to be around 20%. If there is too much downward floating, it will not only be unprofitable, but also cannot guarantee the quality, progress and safety of the project.