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Skills and standard practices for applying quotas in cost estimation. The work of cost estimators requires continuous exploration and learning in various actual projects, as well as the accumulation of experience, in order to improve one’s capabilities and handle different situations with composure. As an excellent cost estimator, do you really know how to apply quotas? First, one needs to know what types of items are required. Then, using the catalog, find the corresponding items in the quota tables. In the specific instructions provided for each item, look for key details regarding that item to determine whether it is suitable for selection. Next, check whether all the components related to that item—such as machinery and materials—are included in the quota amounts. This requires experience gained through actual practice, but it’s important not to miss any items. For example, the main materials for some items may not be included in the overall budget cost, so special attention must be paid to adding in the costs of those missing materials. 2 Prepare a budget book, and learn step by step following the approach below. Why is this structure used? Why is it possible to do this kind of manipulation? What are the advantages and disadvantages of such an approach? How do you think it can be applied (under conditions that comply with the quota regulations and guidelines, one budget item can often correspond to several different budget quotas), and what will be the differences in prices? You can choose how to apply these quotas based on your position – whether you represent the client side or the vendor side! ① When determining the comprehensive unit price, the following points should be noted: (1) It shall be based on the description of project characteristics. When there is a discrepancy between the description of the item characteristics in the schedule and those on the design drawings, the description in the schedule shall prevail in determining the comprehensive unit price for the bid. Upon commencement of construction, the employer and the contractor will re-determine the comprehensive unit price based on the actual characteristics of the project and in accordance with the contract provisions. (2) Handling of provisional estimates for materials. For materials with estimated prices provided in other project lists within the tender documents, such prices shall be included in the comprehensive unit price. ② The preparation of the schedule for pricing measure items: The pricing of measure items should be based on the construction organization plan for the project under bid. For those measure items for which the quantity can be calculated, it is appropriate to use the method of a bill of quantities for individual items, with comprehensive unit prices applied for pricing ； The remaining measure items can be priced on a ‘item’ basis, and should include all costs except for regulatory fees and taxes. The specifications for valuation based on lists stipulate that the cost for safe and civilized construction, which is included in the list of measure items, should be calculated in accordance with ** or the cost standards set by provincial or industry-level construction authorities; this cost cannot be subject to market competition. ③ Other items and the preparation of the bill of quantities: The costs related to other items mainly include provisional sums, provisional estimates, daily rates, and general contracting service fees. The following principles should be followed when submitting bids: The provisional sums should be filled in according to the amounts specified in the list of other items, and no changes shall be made to them ； The provisional estimate shall not be altered or changed ； For daily wage work, the comprehensive unit prices for each item shall be determined independently based on the items listed in the other project list and the estimated quantities, and the costs shall be calculated accordingly ； The general contracting service fee is determined independently, based on the scope of subcontracted works and the materials and equipment to be supplied as specified by the tenderer in the tender documents, as well as in accordance with the coordination, cooperation, and service requirements set forth by the tenderer and the needs of site management. ④ The criteria for calculating fees and taxes are established in accordance with relevant laws, regulations, and policy provisions; they are mandatory, and bidding must be carried out in compliance with the relevant regulations set by ** or the provincial or industry-level construction authorities. (1) Tender documents, bill of quantities and its supplementary notices, and minutes of queries and answers. (2) Construction project design documents and related materials. (3) Conditions at the construction site, characteristics of the project, and the proposed bid submission for the construction organization plan or construction scheme. (4) Technical documents such as standards and specifications related to the construction project. (5) Project cost information or market price information issued by the local project cost management authorities. (6) Survey data on the site conditions, such as natural conditions and construction conditions at the construction site. (7) Other relevant materials. 3 basic steps that beginners in cost estimation should know 1. Match them accordingly. Use the appropriate quota for the corresponding amount of work; first, identify the quota that applies to the amount of work in question. 2. Understand the composition of the base price. The base price in the quota consists of labor, materials, and machinery costs, plus management fees and profits (it should be noted that attention must be paid to the units used). Nowadays, all quotas are based on consumption levels; consumption refers to losses. The quota sheet specifies the loss amount for each type of material, and the unit price of that material multiplied by the loss amount gives the quota price for that material. 3. Base price conversion. If there is a change in the price of labor, materials, or machinery, it is necessary to adjust the base price: the previously changed price is deducted from the base price, and the adjusted price is then added to form a new price, whereas the loss amount remains unchanged. WeChat official account: Cost Management Practical Knowledge Lecture Hall. Also, pay special attention! The quota you set must be reasonable; in other words, even if the comprehensive unit price for a particular item is high, you need to be able to provide a clear explanation when the client questions that price. For example, in the case of earth excavation, if you use manual labor for digging and loading the soil into vehicles, then you need to explain to the client why manual excavation was chosen instead of mechanical excavation (you can explain that the site conditions do not permit the use of large machinery, so manual excavation is the only option). There are many other things to keep in mind that you will encounter at work, and you can learn as you go*.