The Complete List of Quantity Billing Basics

Construction cost in the direct sense is the construction price of the project. Engineering cost has the following two meanings: the broad sense of the project cost is the construction of a project is expected to spend or actually spend all the investment costs of fixed assets, which corresponds to the main body of the investment and the project construction unit. In this sense, the project cost is the investment cost of the project, the construction project cost is the construction project fixed assets investment. Project cost in the narrow sense refers to the price of the project, that is, for the completion of a project, expected or actual in the land market, equipment market, technical labor market, as well as the contracting market and other trading activities in the formation of the price of the construction and installation works, usually refers to the construction market contracting price of contracting works.

The main difference between the two meanings is: the former belongs to the category of investment management, the latter belongs to the category of price management. Distinguish between the two meanings of construction cost, the theoretical significance of its investors and contractors as a representative of the supplier's market behavior to provide a theoretical basis. The practical significance of the distinction between the two meanings is that: in order to achieve different management objectives, and constantly enrich the management of engineering cost content, improve the management method, better for the realization of their respective goals, thus contributing to the promotion of overall economic growth.

The origin and development of engineering cost

Engineering cost in the direct sense is the construction price of the project. Engineering cost has the following two meanings: in the broad sense, engineering cost refers to the construction of a project is expected to spend or actually spend all the investment costs of fixed assets, which corresponds to the main body of the investment and the project construction unit. In this sense, the project cost is the investment cost of the project, the construction project cost is the construction project fixed assets investment. Project cost in the narrow sense refers to the price of the project, that is, for the completion of a project, expected or actual in the land market, equipment market, technical labor market, as well as the contracting market and other trading activities in the formation of the price of the construction and installation works, usually refers to the construction market contracting price of contracting works.

The main difference between the two meanings is: the former belongs to the category of investment management, the latter belongs to the category of price management. Distinguish between the two meanings of the project cost, the theoretical significance of its investors and contractors as a representative of the supplier's market behavior to provide a theoretical basis. The practical significance of the distinction between the two meanings is that: in order to achieve different management objectives, constantly enrich the management of engineering cost content, improve the management method, better for the realization of their respective goals, thus contributing to the promotion of overall economic growth.

Traditional fixed-price pricing

1) unit valuation method to determine the cost of the project

1) unit valuation method to determine the cost of the project formula

Unit of the project budget direct project cost = [Σ (volume × budget comprehensive unit price)] × (1 + other direct cost rate)

② Calculation steps

Calculation of the volume of the project → set of budget unit price (budget fixed base price) → preparation of material analysis table → calculation of other costs, profits and taxes and summarize the cost.

Unit valuation method to determine the cost of the project, is based on the unified rules for calculating the amount of work, and then apply the unified preparation of the regions and departments of the comprehensive unit price, which is characterized by a small amount of work, simple calculations, but in the case of large fluctuations in market prices, the results of the use of the unit price method of calculating the results will be deviated from the actual level of the error, it is often necessary to make up for the use of some of the coefficients or the difference between the price.

2) physical quantity method to determine the cost of the project

1) physical quantity method to determine the cost of the project's main formula

Unit of the project budget direct engineering costs = [Σ (volume of work × materials budget quota amount × the then local materials budget price) + Σ (volume of work × labor budget quota amount × the then local labor wage unit price) + Σ (volume of work × construction machinery shift budget quota amount × the then local machinery shift budget) + Σ (volume of work × construction machinery shift budget quota amount × the then local machinery shift budget) + Σ (volume of work × construction machinery shift budget quota amount × the then local machinery shift budget budget) + Σ (volume of work × construction machinery shift budget quota amount × the then local machinery shift budget budget) quota amount × local machinery shift unit price at the time)] × (1 + other direct cost rates)

② Calculation steps

Calculation of the amount of work → set of budget labor, materials, machinery shift quotas → statistical summary of the unit of work required by the various types of manual labor consumption, material consumption, machinery shift consumption → according to the time, the local labor, materials and machinery shift unit price, the summary of the labor costs, material costs, and machinery costs Material costs, and machinery costs → calculate other costs → summarize the cost.

Adopting the physical quantity method to determine the cost of the project, due to the use of labor, materials and machinery shift unit price is the actual price of the local, so the budget can be more accurately reflect the actual level of error is small, but, because of the use of this method needs to be counted labor, materials, machinery shift consumption, you need to collect the corresponding actual price, if the market information is less, the market price is difficult to accurately grasp, so the workload is greater. It is difficult to accurately grasp, and thus the workload is larger and the calculation process is cumbersome.

Bill of quantities

1)Calculation formula: total offer = Σ (quantity × comprehensive unit price) + start-up costs

2)Calculation steps

Calculation of the quantity of work → to provide the name of the physical list of the project → calculation of the comprehensive price → calculation of the start-up costs → summary of the cost of the project.

The bill of quantities method of pricing requires a unified project division, unified rules for calculating the quantity of work and the list, the contractor can determine the comprehensive unit price according to the characteristics of the project, their own conditions, market prices, independent quotation. This method of project bidding unit does not need to calculate the amount of work, small workload, you can focus on the construction organization design and market inquiry, but there is no adaptation to the bill of quantities of quantities of engineering consumption quota.

3) the characteristics of the bill of quantities offer

Bill of quantities offer in China is a new pricing model, compared with the traditional fixed price, there are the following characteristics:

1) bill of quantities bill of quantities pricing in the form of a comprehensive unit price, the comprehensive unit price includes the direct cost of the project, the indirect cost of the project, the profit and a variety of taxes and other fees. Unlike the previous fixed price as a fixed direct cost table and a variety of fees, taxes, materials, price difference table to know the cost of the project. In contrast, the bill of quantities pricing is simple and clear, more suitable for the construction of the project bidding.

② bill of quantities pricing requires the bidding unit according to market conditions and their own strength offer, thus breaking the formation of the project cost of a single and monopoly, showing a variety of high and low offer. Construction project bidding, to a large extent, is the project unit price competition, such as still using the previous fixed price model, competition can not be truly reflected.

3 bill of quantities pricing has contractual legal, bill of quantities for the bidders to provide an equal basis for quotation, settlement in accordance with the bidding documents stipulated in the measurement method of measuring the actual number of completed, that is to say, the number can be adjusted.

④The diversity of quotations of bidding units is conducive to the gradual implementation of the evaluation of the lowest bid winning method, so as to achieve the purpose of reducing the cost of the project and saving investment.

Problems

Each pricing method has its own characteristics, shortcomings are difficult to avoid.

1) The shortcomings of the unit valuation method of pricing

①The quantity and price are one and the same, the price is relatively lagging behind, and it can't reflect the price of construction products in the market in a timely and effective manner.

②The comprehensive quota of the integrated degree of large, construction entity consumption and non-entity consumption is not divided, not conducive to enterprises to play to their strengths, and actively improve the construction program to improve competitiveness.

③ Calculate the amount of work according to the drawings, apply the appropriate subheading, according to the prescribed rate of fees, the implementation of the document policy adjustments, the enterprise's autonomy in pricing power is small. Bidding often becomes virtually rate bidding, can not fully reflect the market fair competition, but also difficult to assess whether below-cost price.

2) physical quantities of problems

Physical quantities of the method has become the international community to prepare the construction cost of the practice, China's accession to the WTO, as a service trade in the construction market, will be open to the outside world in all aspects of the foreign design, construction companies will enter our market, and our design and consulting organizations and building construction enterprises are bound to enter the international market. Therefore, it has become imperative to deepen the reform of project cost management and familiarize, apply and promote this international practice. But the implementation of the physical quantity method is technically difficult, therefore, the current need to actively create conditions to accelerate the promotion of this method.

Because of the long-term implementation of the unit valuation method, and thus the design and construction enterprises have not yet established their own quota database, but also the lack of accumulation of actual data, so the implementation of the physical quantities of the method in a short period of time is indeed a certain degree of difficulty.

3) bill of quantities pricing problems

The implementation of the bill of quantities pricing is aimed at breaking the government's cost management department to unify the practice of unit price, so that enterprises can give full play to their own price and technical advantages, and actively in the competition in the formation of prices. However, the current reality in China is that most construction enterprises do not have their own enterprise quota, and many small and medium-sized construction enterprises do not have enterprise quota at all. So in the bill of quantities offer, often in accordance with the budget quota in the corresponding sub-consumption, multiplied by the region within the labor, materials, machinery, the market price of the bench, to get the direct cost of the project, coupled with the rate quota developed by the enterprise category or category of the project to determine the comprehensive management fee and preferential discount coefficients, you will get the comprehensive unit price. The essence of this practice is still following the traditional fixed-price pricing mode, which is just a change of the surface form. Therefore, in order to establish a real bill of quantities pricing model, should make each enterprise as soon as possible to prepare the enterprise's enterprise quotas, and the establishment of the enterprise's price information base.