Thoughts on low bidding?

Thinking about low bidding_Li Songling_Construction Economy_Construction Chinese network bidding competition at the core of the competition is the competition of price, low bidding is the international practice, this paper according to the current situation of bidding in China's construction industry, analyzes the characteristics of the low bidding and the existence of the problem, puts forward to ensure that the low bidding should be taken measures.

Keywords: project bidding project management

In recent years, China's construction market transactions continue to regulate the behavior of construction projects to implement bidding has become the main form of contracting. With China's accession to the WTO and the opening of the construction market, in the full implementation of the bidding system at the same time, the bidding method should also be gradually aligned with international practice, liberalize the bidding price of the competitive restrictions, the use of low bidding. The so-called low bidding is the bidding enterprise through the bidder's pre-qualification to participate in the bidding, in the bidding documents to meet the substantive requirements of the bidding enterprises in the lowest bid.

One, China's bidding status quo and problems

At this stage of bidding and tendering work, the tender is generally divided into two major technical and business bid, due to the evaluation of the short time, the task is heavy, the technical bidding in the flexible scoring part of the difference is generally not big, can cause the difference in scoring is mainly in the business bid, i.e., the project offer. Although the business bid is now divided into two parts of the cost of competition and non-competition, but these two parts of the cost is calculated in accordance with the national quota and fee system, in the bid opening, the owner and the bidder in accordance with the same drawings, the same quota, fee standards and rates to make a bid and bidding, and then the bid and bidding according to a certain way of integrating the evaluation of the bidding bottom, the evaluation of business bidding, the bidders made the offer closest to the business bidding, the bidder's business bidding. When evaluating the commercial bid, the bidder's offer closest to the evaluation of the bottom of the bid, the party with the highest score of the commercial bid, the most likely to win the bid. Evaluation of the tender base although the role of the tender base has been weakened, but due to the evaluation of the tender base and the tender base is generally closer, so the tender base is still an important factor in whether the bid can be won. This evaluation of the bidding method can prevent the bidding enterprises to form the vicious competition, can also prevent the winning enterprise jerry-building, shoddy work. But there are some problems:

1. According to the principle of market economy, the investor always want to get the maximum recovery with the minimum input, and the current bid evaluation rules, in the same conditions of quality of the work, even if the lowest price may not win the bid, which is obviously not in line with the economic principles.

2. Quotas from the measurement, preparation to promulgation, use, always a period of time apart, the fixed price only reflects the preparation of the market price, lagging behind the changes in the market, it is difficult to accurately and timely reflect the price of labor, materials, machinery, and other costs with the market changes.

3. The current stage of the bid evaluation method, for construction companies, even if the high level of management, advanced technology, low cost, the lowest price, not necessarily win the bid, which gives such a bidding enterprise to a great blow, while relying on relations, by luck to win the bidding of the unit of a large living space, invariably thwarted bidding enterprise enthusiasm, which is obviously unfair.

The essence of market economy is characterized by competition, and the core of competition is price competition. This bidding method can not fully reflect the competitive bidding, in order to adapt to the needs of the market economy, the need for reform.

Second, for the bidding problems should be taken

1. Cancel the existing quota of legal and mandatory, the state promulgated the quota is only used as a reference quota. Quantity calculation rules unified provisions, must be strictly in accordance with the rules of calculation, but the price is a reference price, owners and bidders can be priced independently.

2. Some rates such as construction organization measures, construction technology measures, profit, etc. are no longer uniformly stipulated by the state, but by the bidders according to their own technical level, management level and business status to determine.

3. Bid evaluation in order to fully reflect the price competition as the core bidding and tendering, to protect the interests of owners while mobilizing the enthusiasm of the bidding enterprises, and as soon as possible with the international practice, should be used to low bidding.

Three, the advantages of low bidding and the problems faced

Analysis of low bidding, it has the following advantages:

1. Because it is the lowest bid, so for the owner is a great savings in investment. Market economic conditions, the owner as the future owner of the construction project, and the project's responsibilities, rights and benefits in one. Owners to invest in a project, often facing many competitors, owners only with the minimum investment to build the project, to obtain the best investment benefits, in order to be invincible in the fierce competition

2. Dilute the role of the bidding bottom, clear bidding bottom is only in the evaluation of the bid as a reference, generally do not allow bidders to make the bid bottom, so that we can effectively prevent "leakage of the bidding "," crosstalk "" backroom operation "and other illegal behavior, to ensure that the bidding and tendering fair, open and just principle, and promote the healthy development of the construction industry.

3. The implementation of low-cost bidding, enterprises are bound to compete fiercely with each other in the bidding process, the bidding enterprises in order to win the bidding must strengthen management, promote technological progress, and constantly reduce production costs, and strive to do the best project at the lowest cost, thereby increasing the competitiveness of enterprises and promoting the improvement of productivity levels.

4. The lowest price winning method is easy to operate, the lowest price in the commercial bid who won the bid, greatly saving the bidding process in all aspects of the transaction costs, but also in line with the objective operation of the law of the market economy.

5. China's accession to the WTO, many aspects of the inevitable and international practice, now the international engineering contracting generally use FIDIC terms, the bidding is generally used in the bidding, China only follow international practice, in order to gain a foothold on the world stage.

Lowest price winning method has all sorts of benefits, but the implementation of it is also facing many problems:

1. Bidding requirements for high quality of the preliminary work, whether it is survey or design to improve the depth and accuracy, the preparation of bidding documents to be very careful and thoughtful, the larger the project scale, the more technically complex bidding request the more accurate and detailed, so as to ensure that the bidding unit to make the offer to take into account the full range, not to be in the lowest price winning bid. Not in the lowest bidder through a variety of claims to make the final total cost of the project increased, so that the lowest bid method becomes meaningless

2. Construction market laws and regulations are not yet complementary, can not be effective constraints on the behavior of the market players. Some construction companies quote arbitrarily, without considering their actual affordability to the lowest price and won the bid, in the construction stage in other ways to retrieve their own "losses" in the quote.

3. The implementation of low bidding but also to grasp the qualification of the bidders to ensure that the bidders have the ability to complete the project. Some do not have the ability to complete major or special projects of small construction units because of the small staff or simple technology, low cost can be the lowest bid and won the bid, strict qualification review can not give these small construction units to take advantage of the opportunity.

4. Decades due to the decree of the quota, people are accustomed to using the national quota, most of the current bidding enterprises did not establish the enterprise quota, there is no independent valuation information, so the lowest price offer can not really reflect the true level of the bidding enterprise, the lowest price is not the real meaning of "lowest price".

Four, to ensure that the low bidding measures should be taken

1. Improve the market economy regulations, the development of fair market competition rules, in particular, to improve the project management system and accountability system, at the same time, the implementation of laws and regulations to implement standardized management, and thus promote the healthy development of construction enterprises.

2. Strict market access system, cultivate qualified market competition main body, improve the construction enterprise license system, business project review system, competitive bidding system, project quality management system, dredge the construction market export channel.

3. Accelerate the process of marketization, through the fierce market competition to prompt construction enterprises to establish their own internal quotas as soon as possible, to ensure that the bidding system of virtuous circle.

4. Establishment of engineering guarantee system. Gradually establish the engineering risk management system with engineering guarantee and engineering insurance as the main content, and reasonably share the risk in order to reduce the engineering risk and compensation disputes.

5. In order to ensure that the offer is reasonable and complete, should also establish the design, survey compensation and design, survey insurance system, for the low bidding method solid foundation.

V. Conclusion

Low bidding will naturally eliminate a number of hopeless development, difficult to survive the construction unit, the bidding unit screening results will make the construction market construction unit strong, the weaker the weaker, this is the law of the market itself. With China's gradual convergence with international practice, supporting the completion of the system, low bidding has been a major trend. I believe that in the near future, with the maturity of China's market economy, low bidding will play a very important role in the construction project bidding.

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