What are the disadvantages of quota pricing model?

The advantages and disadvantages of quota pricing model exist, but many people can't tell the specific situation. We talked about the advantages of the quota pricing model before. What are the disadvantages of the quota pricing model today?

Under the quota pricing model, the government is the main body to formulate the project cost. It restricts different levels of construction enterprises to implement the same standard of "fixed direct cost" or "fixed labor cost" when recording costs, and the owners can only be in a subordinate position and can only be calculated according to the government's "charging standard".

(1) does not reflect the construction sequence, master-slave relationship and time-space sequence in the use of funds. Only from the accounting point of view, the composition of China's project cost is stipulated, which does not reflect the clear thinking of project cost management and is easy to be confused in implementation.

(2) It can't reflect the principle of high quality and good price for building products. Owners always hope that the project quality is good and the price is low. However, the investment in building high-quality projects is greater than that in building ordinary and reasonable projects. Although the government has recently made adjustments to allow both parties to collect compensation fees for outstanding projects on a voluntary basis, if one party does not agree, the input fees cannot be recovered. Therefore, this method is not easy to master, and it is easy to cause dissatisfaction with the owners with poor engineering quality. It is necessary to increase the investment of construction enterprises and build high-quality projects. The contradiction between them is obvious.

(3) It is not conducive to the bidding work. At present, the calculation of project cost is complicated, time-consuming and laborious. Not only the "fixed direct fee" should be applied, but also the material price difference should be calculated, and the management fee should be charged by the fixed fee. At the same time, in theory, the same drawing applies the same quota, and the result should be the same according to the same information price. However, due to the different understanding and level of operators, the results are often very different, which makes the bidding work not to examine the comprehensive ability of enterprises, but to assess the understanding ability and luck of budget forecasters. It is obviously unfair and unreasonable that whoever lets the project budget "hit the pre-tender price" may win the bid.

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