Regarding the procurement phase in project construction, how can it be carried out efficiently, at affordable prices with high quality, while ensuring integrity and transparency?

1. First, prepare the procurement tender documents, which include specifications, inquiry documents, drawings, and so on as attachments. Then the bidding parties submit their bid documents, followed by bid evaluation (technical evaluation and commercial evaluation), and finally the technical agreement and contract are signed. 2. Generally speaking, when making purchases, there is no technical agreement; instead, there are quotation documents, drawings, and other materials available. 3. When Party A makes the purchases itself, it involves a significant amount of manual effort and is troublesome, but it saves money and allows one to get the items desired. When Party B makes purchases, it has to cover the corresponding costs incurred by it – such as labor costs and management expenses, among others. Moreover, when making purchases, Party B generally tries to get things at lower prices, aiming to acquire what is required within the specified budget; any excess amount goes into its own pocket. 4. From an economic perspective, it’s impossible to have products that are both of high quality and low in price. Of course, what we want to buy is something that offers the best value for money – something practical that can be obtained at the lowest cost possible. Unnecessary functions should be minimized as much as possible, and this is something that requires the expertise of technical personnel.

1. General procurement procedure: First, the design unit prepares a request for quotes, which includes the engineering drawings with prices, technical specifications, technical requirements, and so on. The purchasing unit prepares the tender documents, with an annex containing the request for quotes. Then the bidding parties submit their bids in accordance with the requirements specified in the tender documents. Next comes the bid evaluation process (technical evaluation and commercial evaluation), and finally, the technical agreement and contract are signed. 2. Generally speaking, procurement is divided into two parts: technical bid and commercial bid. 3. Party A’s procurement means carrying out the purchases itself, which requires a large amount of manpower and is quite troublesome. Party B’s procurement is carried out by the general contractor (EPC) or the construction unit, and Party B generally tries to purchase items at lower costs, using as little money as possible to meet the design requirements. 4. It’s generally not possible to get good quality at a low price; of course, the items we purchase must meet the design requirements.

The bidding is divided into two parts: the technical bid and the commercial bid. The technical bid is prepared with the involvement of project technicians to ensure that the purchased items are of high quality and suitable for use ； The commercial bid is handled by the purchasing staff, who compare options from various suppliers to ensure the best cost-performance ratio.

State-owned enterprises operating branch offices must carry out procurement in accordance with relevant procurement and bidding regulations; the process is planned, involves specific costs, and follows formal procedures, making it quite complicated. In the case of private enterprises, it seems that the items purchased are often for the boss’s relatives, and there’s no need to worry about bribes or favoritism – people simply compare prices and quality. The key is to ensure that only suppliers at the same quality level compete for bids; for example, if you choose a foreign brand, then domestic brands of lower quality cannot compete, as their prices and quality aren’t on par. For critical components, it’s necessary to select high-quality products, while for less important components, ordinary ones will suffice. Behind the notion of good quality at low prices lies often excessive business tactics and a focus on profit at the expense of other considerations

In the bidding process, everyone should strive for high quality at reasonable prices, achieving mutual benefit. It’s very, very difficult.

There are many factors that affect procurement, and often there is a discrepancy between the final product and the technical requirements set by the using department. State-owned enterprises often charge high prices, but it’s not certain that you’ll get good quality products; as for private enterprises, I only buy cheap items, and even for key equipment, there are significant discounts.

Generally, the final requirements of a contract are specified in the technical agreement; therefore, the review by technical personnel is extremely important.

An important issue here is that the selected shortlisted manufacturers need to be at the same level. . . . . .

Good quality at low prices no longer exists. Good products have their reasons for being expensive; the purchase price is high, but the costs associated with using them are low