What are the advantages and disadvantages of bill of quantities valuation method for bidding?

The application of bill of quantities valuation in bidding is different from the traditional quota valuation method. On the basis of fully considering the separation of quantity and price and risk sharing, it provides a unified standard for bidders and makes the bidding process more fair and just. Taking the water supply and drainage project of Guo Xin Securities Building in Yiwu as an example, this paper analyzes its advantages and existing problems.

I. Project background

Guo Xin Zhengsao Mansion in Yiwu has a total construction area of 78 184m2 and a building height of129.75m. The municipal water supply and drainage network is laid on the municipal roads in the south, north and west of this project, and this project can be accessed.

Second, the comparison between bill of quantities valuation and traditional quota valuation methods

The water supply and drainage project of this project adopts the valuation mode of bill of quantities, and the main quotation forms are the summary table of unit project bidding control price and the valuation table of partial project list. If the traditional quota pricing model is adopted, the water supply and drainage project budget will be formed. After comparing the actual operation of the two modes, we can find the main differences as follows:

(a) the applicable economic system

The traditional quota valuation is based on the determination of engineering quantity, and finally the project budget is obtained. The related expenses quota is formulated according to the average level of different regions or enterprises, and this pricing model presents the average consumption level of society. Take the water supply and drainage project as an example, the same stainless steel pipe can often be divided into many kinds, and there are 9 kinds of stainless steel pipes in the hot water part of bare ground. Such as DN 100, DN80, etc. The valuation mode of bill of quantities is formed by listing the detailed list of engineering projects and summarizing the product of the comprehensive unit price of each item in the list and the engineering quantity. The project cost in this mode is only affected by market competition.

(B) project division and pricing methods

The traditional quota pricing model is a specific quota item set according to the construction technology and working procedure, while the bill details in the bill of quantities pricing model are considered as a comprehensive entity, and a comprehensive entity may contain a series of subprojects. Taking the above-ground water supply and drainage project of the securities building as an example, the bill of quantities of the above-ground hot water part includes the production and installation of stainless steel pipes, welded flange valves, threaded valves, water meters, automatic exhaust valves and pipe supports. In the quota pricing model, the above parts are calculated separately.

(3) Valuation basis

The traditional quota pricing model is based on the relevant regulations issued by the project cost management organization and the total cost of labor and machinery in the budget quota. The valuation mode of bill of quantities mainly reflects the comprehensive unit price valuation. Take the threaded valve of the above-ground water supply part of the water supply and drainage project of Securities Building as an example, as shown in Table 1 and Table 2:

Three, the advantages of using the bill of quantities valuation method in bidding

Through the comparative analysis of two pricing methods for water supply and drainage works of Guosen Securities Building in Yiwu, it can be seen that the pricing mode of bill of quantities has the following advantages:

(1) Reduce social costs and improve work efficiency.

The traditional quota pricing model is prone to a lot of repetitive work in installation engineering. Because there are many sub-projects in the whole project, according to its operation steps, it takes a lot of time and energy for both bidders to apply for quota sub-projects, and it is difficult to achieve the expected work efficiency. The implementation of the bill of quantities valuation model has improved the shortcomings of the former, avoided the duplication of work in bidding, made more effective use of manpower and financial resources, and reduced the occurrence of mistakes, which is convenient for operation.

(two) to facilitate the adjustment and control of the owner's investment

The traditional quota pricing model is not intuitive and can not directly reflect the unit price of each subproject. It is often found that the total investment exceeds the budget estimate at the final settlement, and the information lags behind the market seriously, so it is difficult to adjust the project cost accurately and timely. The bill of quantities is very accurate, intuitive and clear, showing the unit price and comprehensive pricing of each partial project, and it is clear at a glance when it is settled or audited.

(three) a detailed description of the characteristics of the project

Under the traditional quota pricing mode, construction enterprises need to define the specific content of construction and the specific characteristics of the project according to drawings or quotas. But in the mode of bill of quantities, each subtitle is described in detail. For example, for the installation of stainless steel pipes in the above example, the list stipulates the equipment model, specification, use, material, hydraulic test design requirements and protective layer design requirements, which the construction enterprise can see at a glance.

(d) More fair and just bidding.

The traditional quota pricing model is not flexible. It fixes the positive factors that play a leading role, such as the management level, construction methods, technical equipment and so on. After calculating the project cost demand, the actual consumption of the project and the cost of construction measures are not distinguished.

Fourth, the existing problems

The change of pricing mode is a great progress in project cost management. However, China's bill of quantities pricing model started late, and there are still many places to be improved.

(A) the relevant departments of engineering cost have insufficient understanding of the valuation of bill of quantities.

There is a disconnect between the project cost department and the management department responsible for project bidding. The competent department of project bidding attaches much less importance to the implementation of bill of quantities valuation than to the control of construction site quality, safety and construction period.

(B) Bill of Quantities valuation specification itself is not perfect.

China's bill of quantities system is imperfect, the division is unreasonable, the thickness is improper, some items are too thick, which is not conducive to enterprise cost analysis, and some items are too detailed, which brings inconvenience to project settlement and does not meet the requirements of fast quotation. Among them, to determine the choice of inventory measurement units, we should fully consider the actual operation of the market, which is more simple and convenient to operate.

(C) construction enterprises lack their own quota

The valuation basis of bill of quantities should be the enterprise quota that can fully reflect the real technology and management strength of construction enterprises. The quotation given by construction enterprises should reflect their own strength, and only with internal quotas can they better participate in price competition. However, at present, most domestic construction enterprises have not achieved the internal quota. At the same time, due to the management system problems, most enterprises did not carry out cost accounting for a specific project within the enterprise, and no one analyzed and calculated the quantities and machine consumption required for their partial projects, and did not summarize them in time to form budgetary estimate indicators after the project was completed.

(D) The cost consulting industry is not sound enough.

China's engineering cost consulting industry is still in the early stage of development, and the service concept still stays in the traditional quota model. Most of them only provide the pre-tender estimate at the stage of estimation and bidding, and do not participate in the whole process management of the project. At the same time, the industry behavior is not standardized, and there are behaviors such as low quality of employees, poor service quality and disorderly market competition, which seriously restricts the further development of the cost consulting industry. Conclusion The bill of quantities pricing model perfects and improves the shortcomings of the traditional fixed-rate pricing model, which is more suitable for the current project cost in China. Although there are shortcomings and problems, there are still corresponding management measures to overcome them. The release of 13 bill of quantities specification is the perfection of 08 bill of quantities specification, which shows that our bill of quantities pricing model is on the road of continuous improvement.

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