How to determine the contract price for EPC tenders of new coal chemical and petrochemical projects
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How are the contract prices determined and how is settlement carried out in the EPC general contracting tender documents for new coal chemical and petrochemical projects? Since there were no drawings in the early stage and it was therefore not possible to prepare a bill of quantities, how should bidding be carried out to determine the terms for contract settlement? I would appreciate some guidance from everyone, or if possible, any examples of bidding documents or contract settlement terms from recent EPC projects in the coal chemical or petrochemical industries.
This topic is quite extensive; it seems you don’t understand it at all. You’d better start by reading some books on contract management and project management first. Or study the *Ministry of Housing and Urban-Rural Development’s General Contract for Engineering Construction Projects (Model Text). Simply put, there is a bidding method for projects with drawings, a different bidding method for projects with drawings of varying levels of detail, and another bidding method for projects without any drawings at all. Depending on the different bidding methods, the owner must establish a base bid of varying levels. As for how to settle it? It shall be determined in accordance with the contract terms.
Everyone is aware of the rules and regulations outlined in books; what’s important is the actual implementation and application. I have spent many years working on construction settlements and bidding processes for chemical engineering projects, and I’m interested in knowing how, in the past two years, large-scale coal chemical projects such as those carried out by Hualu Institute, Tianchen Institute, Wuhuan Institute, etc., have adopted the EPC contract model. In these cases, the EPC approach is used right after the feasibility study is completed. This leads to significant contract risks and settlement disputes for both parties. How are such contract risks managed and settlements handled in practice? I’m asking colleagues in this field to share tender documents and contracts for similar projects
The \"feasibility study + EPC model\" for large-scale coal chemical projects is adopted because there are existing successful projects of similar type as references (such as the 1.8 million-ton methanol project and the 600,000-ton MTO project); aspects such as the process package, key equipment, construction period, contract terms, and even the construction contractors are almost copied verbatim. Having been involved in construction cost settlement and bidding for many years, you should be familiar with the key aspects such as managing contract risks and handling contract settlements in this type of contract structure.
There are still quite a few disputes regarding settlement at the later stage, as well as significant contract risks, even when bidding is carried out under a feasibility study or budget estimate list, or even a simulated list