As a contractor, the main business of an engineering contracting company cannot be separated from engineering contracting. If the contractor wants to gain a firm foothold and develop in the international competition, he must constantly sum up experience, learn lessons, improve himself, improve management, and do the international project contracting business better and better.
There is no doubt that the purpose of contracting business and management of engineering contracting companies is to make money, and the premise of making money is to do a good job in bidding. However, what is a good bid, a good bid?
After years of international contracting practice, we have learned a truth, that is, we should choose to bid instead of bidding at the first sight, and we can do everything. If you bid blindly, you will also invest in professional projects that you don't understand. The risk is great, not only worthless, but also costly, not worth the loss. In addition, the projects loaned by the World Bank and the Asian Development Bank have a 7.5% preferential price for local contractors. If you can't enjoy this 7.5% price discount, it will be difficult to compete with local powerful contractors.
Before the bidding starts, the owner or the consulting company entrusted by the owner should pre-qualify some important or large-scale projects, and the contracting company that has passed the pre-qualification can participate in the bidding of engineering projects. The purpose of the owner's prequalification is to examine the bidder's financial resources, experience and ability, and require the contractor to submit the credit certificate issued by the bank, past financial status, past engineering experience, the construction organization to be established, the management personnel and experience involved, and the existing construction machinery that can be put into use in the project. Therefore, if the contractor wants to pass the prequalification, besides doing a good job in public relations, the most important thing is to prepare relevant documents carefully and pertinently, so that the owner or the consulting company entrusted by the owner can see that the contractor has similar engineering experience and ability. Of course, passing the prequalification does not mean that you must participate in the bidding, and the bidder has the right to decide whether to bid before the bidding deadline. For some projects without prequalification, bidders may also be required to submit similar prequalification documents in the tender. In any case, the contractor should take it seriously and try to embody its own characteristics and advantages.
First, how to do the goal question
Years of experience in international contracting projects have proved that it is not advisable to win the bid below the cost price. Because the result of winning the bid below the cost price makes the implementation of the project more difficult. Although claims can be tried to remedy, claims and arbitration will not only consume a lot of time and money, but also most claims are unsuccessful. This does not mean that the idea is unimportant. During the whole project, a special person will make daily records, collect evidence and declare according to the claim procedure, and get back the extra money through careful claim work. The main point here is that it is not advisable to win the bid at a low price. The price should be realistic, and according to your own cost, consider the management fees and profits stipulated by the company and related taxes and fees.
When bidding, we should mainly pay attention to the following work:
1. Conduct site inspection and market research.
Besides understanding the natural conditions and site environment where the project is located, such as hydrogeological conditions, topography, meteorological tides, water supply and power supply conditions, traffic and communication conditions, we should also understand the laws and regulations of the country where the project is located, local labor resources, local material resources, local machinery purchase and lease, local transportation capacity, local living materials supply, local taxation, customs clearance, local subcontracting, price, currency, banking services, society and so on. Field investigation and market research are the basis of bidding. Only when this work is done can the bid be confirmed.
2. According to the actual situation, formulate the general layout of construction and prepare the construction organization design.
First of all, we should study the bidding documents, drawings and specifications and recalculate the engineering quantity. Then, according to the characteristics and quantities of the project, the construction scheme and plan are formulated reasonably, and the requirements of manpower, materials, construction machinery and equipment and construction overlay are planned in detail. This work is the key to achieving the goal and must be done well.
3. Calculate the direct cost, indirect cost, taxes and fees of the construction project and the profits stipulated by the enterprise according to the actual price, and calculate the unit price of each subdivisional work.
4. Prepare the project cash flow statement, estimate the amount and time of liquidity, and include the loan interest in the project cost.
5. Pay attention to the currency used in bidding.
The tender documents will clearly specify the currency used for bidding and the settlement currency in the special terms and conditions of the contract. Sometimes the bidder can fill in the ratio of foreign exchange to local currency, and the contractor should make a choice according to the situation. In order to avoid the risk of devaluation of the local currency, we usually choose as many foreign exchange ratios as possible. Project manager alliance, project management issues.
The above briefly introduces how to set the goal, that is, to make a cost price first.
Second, the bidding stage should consider
Experienced contractors should also consider how to make money after winning the bid before bidding, and reflect relevant decisions in the tender. Generally speaking, there are several things to do to make money in the future: first, the problem of day jobs; Second, temporary and emergency issues; The third is the problem of changing order; Fourth, the problem of price fluctuation; Fifth, the problem of using unbalanced quotation; Sixth, pay attention to claims. Of course, there are many factors that affect the benefit of the project, such as the management level, management personnel level, technical level, material consumption level, public relations work level, etc. The following only discusses the problems that need to be considered in the bidding stage, that is, how to consider the above problems in the tender.
1. About daily work
In the bidding bill of quantities (B.O.Q), there is usually a daywork quotation sheet, which requires bidders to fill in the daywork unit price of each type of work. Since this part of the quotation is not summarized in the total bid price, the unit price can be quoted higher. In the process of project implementation, the engineer will hand over sporadic or unmeasurable work to the contractor by day work. The contractor will not lose money by completing this kind of work, and the more this kind of work, the more money the contractor will earn.
2. About the provisional amount and unforeseen expenses
According to Article 58 of FIDIC Contract Conditions (1988, 4th Edition), this amount is set to meet some uncertain quantities or some unforeseen project contents, and can be used in whole or in part or not at all according to the instructions of the Engineer.
Usually, in the bill of quantities, there will be a special list to list the provisional amount and unforeseen expenses, including foreseeable projects whose details have not been determined, projects that will be designated as subcontractors and unforeseen projects that have not yet been determined. In order to make the bidding fair, the fee is usually filled in the tender, and the bidder does not need to fill it in again.
It is worth mentioning that, under the provisional sum and unforeseen expenses listed in the bill of quantities, whether the project is implemented by the contractor or the designated subcontractor, the contractor will make money. The contractor has the right to determine the amount of relevant work required by the engineer and demand payment according to FIDIC Clause 52 or 59.4.
3. With regard to the engineering change, this paper is transferred from the project managers' alliance.
Sub-projects with good unit price and changes during construction generally make money. Article 5 1.2 of FIDIC contract stipulates that the engineer shall issue a written change order, and the contractor shall not make any changes without the instruction of the engineer. Clause 2.5 also stipulates that the Engineer shall give instructions in writing, and if the Engineer considers it necessary to give any such instructions orally for some reason, the Contractor shall abide by the instructions. In this case, such instructions shall be deemed to comply with the provisions of this paragraph. If the Contractor confirms any oral instruction of the Engineer in writing within 7 days, and the Engineer does not deny it in writing within 7 days, the instruction shall be deemed as the instruction of the Engineer. The provisions of this Sub-Clause shall also apply to instructions given by the Engineer's Representative and the Engineer or any assistant appointed by the Engineer's Representative under Sub-Clause 2.4. It should be noted that the engineer's representative or assistant representative must be authorized by the engineer and have informed the contractor of his name, responsibilities and rights in writing.
The above is about how the engineering change is issued and the effectiveness of the engineering change. How should the changed project be priced? Divided into the following situations:
(1) The unit price of subdivisional works with unit price in the contract bill of quantities can be directly applied, but it should include management fees and profits. Because some contracts will list some management fees separately, in this case, a certain proportion of management fees should be added to the unit price of subdivisional work. If there is no corresponding unit price in the bill of quantities of the contract, the contractor and the engineer shall negotiate a reasonable unit price. Usually, the contractor will settle accounts first and report them to the engineer, who will confirm them in writing after approval or negotiation.
⑵ Due to many engineering changes in some projects or large errors in tentative amounts, the unit price of subdivisional works can be adjusted according to the provisions in Clause 52.2 of FIDIC contract terms, provided that:
① The amount involved exceeds 2% of the contract price;
(2) When the sectional works are completed, the quantities exceed 25% of the quantities listed in the bill of quantities. When the above two conditions are met, the contractor shall request to increase the unit price.
(3) It is also because some projects have changed a lot or the tentative amount has a big error. According to FIDIC clause 52.3, when the final settlement exceeds 15% of "EffectiveContractPrice", the unit price can be increased for the excess. The so-called "effective contract price" refers to the contract price MINUS the provisional amount and the total amount of daywork. When this situation is found in the final settlement, the contractor shall increase the unit price and add the contractor's site fee and management fee to the unit price.
In construction, the handling of engineering changes is simple and procedural, and there are few disputes between contractors and engineers. Sometimes, for those things that are not suitable for the owner's approval, engineers can be flexible by approving engineering changes.
Anyone with construction experience knows that problems of one kind or another are often encountered in engineering construction, and the design is often modified and needs to be changed. It can be said that the change is absolute. In some construction projects, the number of changes after completion reaches hundreds. Therefore, in the construction, we should pay attention to and follow up the engineering changes, and do a good job in the daily work such as determining the unit price of the changed project, quoting in time, and clearing the changed project. The change project is a part of the whole project, so the change project should be settled in the monthly statement in time.
In practical work, it is also found that the unit price of some changed projects is the unit price of the sub-projects that are not enough in the contract. In this case, the more the project quantity is changed, the more money will be lost. At this time, we must find ways to remedy it, mainly by persuading engineers to modify this change so that they can use the new unit price.
In the bidding stage, it is necessary to study possible engineering changes and tentative amounts. Studying the possible engineering changes, mainly checking the engineering quantity, can find the technical loopholes in the tender or judge the sub-projects that may change in the future. For subdivisional work that may be changed or reduced in the future, the unit price may be lowered; For subdivisional work that may be changed and added in the future, the unit price can be increased a little. In this way, the profit will increase when the project is settled in the future.
4. On the adjustment of price index
When implementing engineering projects in countries and regions with high inflation rate, especially in countries and regions with long construction period, rising prices have a great impact on the price of contracted projects, and contractors will face the risk of rising prices. According to article 70. 1 of FIDIC contract, the contract price should be adjusted due to the fluctuation of labor price, material price and other matters affecting the project cost. The price adjustment can be calculated according to the following formula:
Price adjustment part = effective value × fluctuation coefficient
It can be expressed as: P=P0×C (1).
Where P0 is a valid value, the advance payment, retention money, the amount of designated subcontracting, the amount of materials not installed on the site, the daily work and the change amount can be deducted from the total amount of the monthly statement. C is the fluctuation coefficient, which is calculated as follows:
C=f+∑ai×mci÷mbi- 1 (2)
In formula (2), the constraint condition is: f+∑ai= 1.
F is a fixed coefficient, usually 0.15;
Ai is the proportional coefficient of price adjustment, which is usually filled in by the contractor in the tender;
Mci is the current price index, which corresponds to AI 28 days before or when the contractor submits the monthly report;
Mbi is the basic price index, which is applicable to ai at the time of signing the contract or 28 days before the bidding deadline.
For World Bank loan projects, there are 10 adjustable items in the fluctuation coefficient, that is, the ai value ranges from a 1 ~ a 10, which respectively represent labor, construction machinery, fuel, asphalt, cement, steel, section steel, wood, shipping and other miscellaneous items.
For different projects, the bidding documents will stipulate the method of price adjustment. Some projects with short construction period may not allow price adjustment. At this time, the bidder will usually include the price increase factor in the unit price of the sub-project, and the tender document will give a table for calculating the fixed factor and proportional factor of price adjustment. The contractor should carefully fill in the relevant tables in the tender and put forward the proportion of each price adjustment factor he thinks appropriate.
In order to make the price adjustment profit after the completion of the project, the fluctuation coefficient c should be. As can be seen from formula (2), the greater the ∑ai×mci÷mbi, the greater the value of C. ..
Bidders should thoroughly study the market of the country where the project is located before quoting. Only by fully understanding the political and economic situation and market of the country where the project is located in recent years, and fully understanding the prices of labor and price adjustment materials, can we correctly evaluate and predict the mbi value and make a more suitable choice for the ai value.
In the bidding stage, the ai value can be determined by trial and error algorithm. Mci value is a known price index, which can be published in relevant local government departments or government-recognized departments or government-recognized third countries. Predict and select multiple sets of mbi values and ai values for trial calculation, so as to determine a better set of ai values and the proportion of corresponding price adjustment factors.
In the project implementation stage, the price index adjustment is calculated monthly. When the contractor submits the monthly progress report, it shall calculate the price index adjustment of the completed project last month, and attach the calculation table and the price index corresponding to ai applicable at the time of submitting the monthly progress report or 28 days ago. This article is transferred from the project managers' alliance.
5. About using unbalanced quotation
There are two meanings here:
One is to find ways to collect more money. That is, in the bidding stage, through the calculation and check of engineering quantities, it is known that the number of sub-projects in some bill of quantities is small, and the unit price can be increased a little; By calculating and checking the engineering quantity, the total amount of the protruding part can be deducted from some projects with too many known sub-projects in the bill of quantities. This result is self-evident, and the profit will increase after the settlement.
The second is to find a way to collect money early. That is to say, when filling in the bid price, the unit price of those sub-projects in the early stage of construction will be higher and those in the later stage will be lower on the premise that the total bid price remains unchanged. The result of this is to increase the income in the early stage of construction, reduce the amount of early investment and borrowing from banks, and reduce the interest on the use of working capital.
FIDIC contract terms used in civil engineering are red books, usually called red books. Its characteristic is that the civil engineering part is unit price contract, and the engineering quantity can be changed and the unit price remains unchanged during the implementation. The owner and engineer shall pay the project money to the contractor after measuring and recognizing the amount of work completed by the contractor. Using unbalanced quotation, we can achieve the purpose of income generation by collecting money in advance on the premise that the total quotation remains unchanged.
6. On the issue of attaching importance to claims
In principle, the contractor can file a claim according to the relevant provisions of FIDIC.
1988 in the fourth edition of FIDIC contract terms, the claim procedure, that is, the claim procedure stipulated in Article 53, is defined for the first time.
The so-called emphasis on claims is to regard claims as daily work. In the process of contract execution, we should be familiar with the contract, make original records, strengthen the concept of claim, so as not to delay the claim when there are problems, and strive for reasonable compensation to avoid losses.
The claim should be studied in the bidding stage. Can find out the technical loopholes in the tender, or can judge the possible problems in the future, and take corresponding preventive measures in the tender, so as to lay the foundation for the smooth implementation of the contract after winning the bid.
The most common claim in contracted projects is the claim for construction period. EOT and the contractor's extension requirements run through the execution of the contract. It is of great significance to deal with the problem of project delay, which can not only avoid the contractor from compensating the owner for the delay, but also make the contractor get economic compensation.
In the contract, the word delay means exceeding the completion time stipulated in the contract, which is a breach of contract. In practical work, many extensions of time do not violate the contract, that is, they conform to Article 44. 1 (extension of completion period). At this time, the contractor often uses the English word extension when negotiating with the engineer, indicating that this is not the responsibility of the contractor.
The most commonly used claim clauses for construction period are Article 44. 1 (extension of construction period) and Article 53 (claim procedure). The contractor usually includes the extension of the construction period and compensation for economic losses in the construction period claim materials submitted.
According to FIDIC's definition, "expenses" include all expenses that have occurred or will occur properly inside and outside the site, including management fees and expenses that should be allocated reasonably, but excluding profits. Therefore, once the project is delayed, there will be economic losses and economic compensation will be made. After the project is postponed, the deferred management fee that should be compensated can be calculated according to the following formula:
ME=Cp×Rm×DEOT÷Dc
This formula is called Hudson/Emden formula, in which:
Me-deferred management fee that should be compensated;
CP-contract amount;
RM- management fee, usually 10% ~ 15% for construction projects, depending on the project scale;
Deot-the number of days the project is postponed;
DC- the number of days in the original contract period.
Sometimes, the owner and engineer will demand that the economic losses of the contractor be paid according to the actual situation, and ask the contractor to provide details and evidence of the amount claimed. Therefore, the contractor should pay attention to collecting relevant evidence in his daily work to prepare for the claim.
Delaying the construction period is one of the main causes of engineering losses. Because the delay of the construction period not only caused the economic loss of the contractor, but also affected the reputation of the contractor, and even some chain subcontractors may claim compensation from the contractor. Therefore, the contractor should attach great importance to the planned construction period during the performance period to avoid delays in the construction period.