1. Preface
In the new century, my country is about to join the WTO and its economy will be integrated into the global market. Facing changes in the market mechanism, Chinese construction companies must adapt their management systems to international standards, update their technologies, and reform their operating mechanisms if they want to survive and develop. Design-construction general contracting is the only way for the development of my country's construction industry, a catalyst for my country to improve its engineering project management level, and the foundation for my country's construction industry to enter the international market. Design-construction general contracting is relatively popular in the international market. According to ENR, the contract value of industrial projects completed by the top 100 international contractors in the form of design-construction reached 36 billion in 1996. The annual contract value of Singapore's government projects using design-construction contracts from 1992 to 1996 was S$0.74, S$2.32, S$4.56, S$1.139 and S$1.095 billion respectively, which shows the rapid growth rate. Internationally, the translations of design-construction general contract include: design-construction (Design and build, Design and construct), turnkey deal (epc (Engineer, Procure, and Construct)) or package deal (Package deal) contract , literally understood as the "turnkey" and "fixed-price general contract" projects we have heard of. This method guarantees the owners and allows them to relax, so large foreign companies are happy to accept it.
2. The current situation of engineering project management in my country
my country’s research and industry practice on engineering project management is relatively late. In 1987, when the Lubuge Hydropower Station water diversion system project received World Bank loans and achieved obvious economic benefits through bidding and project management in accordance with international regulations, our country understood the importance of project management for the first time. In fact, the project was designed- A good example of general construction contracting. Since then, our country has begun to implement a project management system. Many construction companies have gained some construction management experience and researched some new management methods. However, the construction industry market is still relatively chaotic, with quality accidents, project delays, cost overruns, and even unfinished buildings Found everywhere. Why is this happening? The reasons are as follows:
① The government allows "project" companies to exist. In order to capture the market, project companies require design and construction at the same time. According to the traditional method, the only way to shorten the planning cycle of each link is to make the project more efficient. Vulnerabilities and concerns arise. The headquarters of many projects do not even have legal person qualifications, and these project companies disperse after completion.
②The construction management department has not established a national networked data management, and there is local protection.
③The feasibility researchers of the project have not accumulated actual engineering experience and make up nonsense. The settlement is often larger than the budget and the budget is larger than the estimated budget. The design and construction units are relatively conservative in cooperation and have their own plans. Many projects have no bottom line, funds are overrun, and the management department is unable to monitor such "unfinished" projects.
④ In terms of project management, there is no mechanism to promote "turnkey" projects, leaving foreign-funded enterprises with investment risk awareness at a loss as to what to do and lack of confidence in domestic contracting enterprises.
3. Countermeasures for my country's engineering project management
Facing the current situation of my country's project management and the reality that my country is about to join the WTO, how to use new mechanisms to improve the level of my country's construction industry to adapt to What about international development?
First of all, the construction management department should establish a national networked information management, which can query laws, industry regulations, company status, patent status, etc. While establishing and improving various laws and regulations, we will promote design-construction general contracting. Starting from January 1, 2000, our country has officially implemented the "Tendering and Bidding Law" passed by the National People's Congress, which provides legal protection for the healthy development of project management in our country, embodies the principle of fair market competition, and also reflects our country's openness to welcome the WTO. determination of the domestic market.
At present, most domestic bid-winning enterprises sign construction contract contracts, and few sign design-construction general contract contracts. This is related to the level of construction management in our country and is inseparable from the traditional design-bidding- construction. The traditional approach is widely used in our country. Generally, a design unit is entrusted with the design. After completion, the owner finds a contractor to construct according to the design drawings. The owner assists the design unit or hires a supervision company to supervise.
What happens with this approach is that the contractor mainly considers completing the work as quickly as possible without overspending, and is not responsible for omissions or errors in the design drawings; the design unit only considers the architectural requirements and ignores the cost of the building and the technical issues of the construction. The construction unit is also not responsible for the construction plan prepared by the construction unit.
I once participated in a large-scale sewage treatment project for Procter & Gamble in China. A well-known construction company in Guangzhou completed the fixed-price international contract. The project is carried out according to the traditional design-tendering-construction method. Procter & Gamble hired a design supervisor for evaluation and experts to demonstrate the construction plan. Finally, it selected the Luban Award-winning company at the highest price among four large construction companies. However, after the construction started, the design unit found that there was a problem with the demonstrated construction plan. Anchor spraying construction could not be carried out in the quicksand layer and needed to be changed to deep mixing piles. The construction unit also found that the bid document from their bidding department was wrong. The anti-corrosion coating selected by the design unit was not Ordinary materials require professional construction teams, and they are expensive. To this end, the construction unit negotiated with P&G many times regarding the contract, and the construction unit finally completed the project at a loss over time. Employees of China Procter & Gamble, which has huge investments in China, do not understand that China's outstanding companies have so many problems and cannot do "turnkey" projects, leaving them to work hard. In fact, foreign companies entering China need contractors capable of undertaking "turnkey" projects. Especially after my country joins the WTO, my country's industry barriers have dropped, the domestic market has become internationalized, and domestic and foreign markets have gradually integrated. Foreign companies must use their advantages in capital, technology, management, talents, services, etc. to squeeze out my country's domestic market. Especially the general engineering contracting market. In the face of increasingly fierce market competition, our country's enterprises must be market-oriented, transform their business models, enhance their adaptability, strive for self-improvement, be brave in making progress, learn to survive in competition, and seek development through hard work. On the other hand, after joining the WTO, we will get more opportunities and enter the international market more easily according to the most-favored-nation treatment and national treatment. At the same time, after joining the WTO, in the international market, as a member country, our companies can have the same rights as other member companies and enjoy the same tariff reductions and exemptions. Under the guidance of the principle of "trade liberalization", China's enterprises can reduce external With regard to the approval process for project contracting, more companies will be engaged in international project contracting, and these companies will have to switch to the direction of design-construction contracting.
Why do design-build contracting companies have an advantage?
① Design and construction are both handled by one unit, which has great advantages in industrial construction contracting. Contractors can design and construct at the same time, adopt new technologies, put new products on the market as quickly as possible, adapt to fierce market competition, and meet the needs of owners.
② The contract contractor has been involved in the project in the early stages of design, and can reflect its technical knowledge on construction technology, cost reduction, shortening construction period, etc. in the design documents to reduce the possibility of problems during construction. sex.
③ Contract contractors have unique advantages in controlling costs, construction schedule, quality, etc., making it possible to implement fixed-price contracts.
④The owner only deals with one unit, which facilitates coordination between both parties to the contract. The contract contractor not only provides design and construction services, but also provides financing for the construction project, post-completion training and maintenance services, which is also known as a "turnkey" project.
⑤ A guarantee mechanism can be introduced. Since the design-construction contractor has clear responsibilities to the owner, it can provide performance guarantees and payment guarantees through legal means, which can effectively maintain economic order. This is also a requirement for my country's Construction Law 》Promotion and improvement.
⑥After the promotion of design-construction contracting, the construction management department only needs to strengthen the management of design-construction contractors (such as stipulating that contractors must have more than one patented technology, the number of personnel with various qualifications, complete The excellence of the project, etc.). Banks can also be used to review the project's financial credit guarantee to prevent unfinished projects. At the same time, the quota-based cost management with Chinese characteristics can also be cancelled.
In summary, design-construction general contracting can promote the development of the construction industry market, adapt to market demand, organically combine design work and construction technology, and help enterprises develop their own competitive products.
IV. Specific forms of design-construction contract
There are three commonly used forms: traditional design-construction contract, detailed design-construction development & construct and consulting agency contract. novelization.
①Traditional design-build contract
In this form, the owner finds one or a few contractors with prior knowledge (or prequalification) in the early stages of the project. The contractor asks its designers to propose plans and cost estimates based on the owner's requirements or design brief. The owner's design brief may only set out some basic design requirements. Some owners may ask consulting companies to help prepare more detailed design briefs and bidding instructions. Once selected by the owner, the contractor takes full responsibility for the engineering design and construction of the project. The owner only has to deal with the selected contractor.
②Detailed design-construction contract
According to this approach, the owner first asks himself or an external design consultant to develop the concept and scheme design of the project. The level of detail is sufficient to prepare bidding documents. Then call for bids. Firms bidding are asked to provide proposals for detailed design and completion of remaining outstanding design work, as well as design cost estimates. Companies interested in the owner's project can ask their own design consultants to prepare proposals. Owners generally evaluate proposals based on the fees quoted by bidders.
This approach can be used when the owner feels uneasy about handing over all design tasks to the contractor, or wants to control the design process, but plans to let one company be responsible for the detailed design and construction of the project.
③Consulting agency contract
Similar to the detailed design-construction contract, the owner first asks himself or an external design consulting company to make a conceptual and schematic design of the project to a certain level of detail. The bidding companies are then asked to submit proposals and cost estimates. When selecting a contractor, the owner introduces the design consulting firm he hired to the contractor. The contractor signs an agreement with the design consulting company. The latter assists the contractor in detailed design, completes the remaining design work and provides assistance during the construction phase.
Design-build applies not only to the entire project but also to certain parts of the project. For example, fire protection systems, wall and support design styles, and automatic environmental control systems can be designed and constructed by specialized subcontractors. It is then incorporated into the overall project by the general contractor. The designs of professional subcontractors are approved by the design unit and tested by relevant agencies or government departments.
These three methods can enable owners to understand the progress of the project in a timely manner and provide them with quality services.
V. Summary
The design-construction general contracting company is a new machine that quickly transforms knowledge into productivity. Our country should vigorously cultivate and support it. Western developed countries have more experience in this area, and we should learn more. In the future, we should transform a group of backbone design institutes into international engineering companies, facing both domestic and foreign markets, using their own professional technology, engineering experience and project management capabilities to organize and manage the entire construction project on behalf of the owner, and carry out "turnkey "General contracting business of engineering construction projects.
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