General contracting bidding and quotation
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I have a question for colleagues working in cost estimation: What pricing standards are used to determine the base amount for construction and installation costs in the EPC tender documents issued by chemical plant owners? Based on what standards are the construction and installation costs determined by the EPC general contractor bidder when submitting their quote? What quotas are used to determine the base bid amount for the tender for installation work subcontracting after the EPC general contractor wins the contract, as well as the construction costs quoted by the construction companies in their bids? (Industry budget quota, local budget quota, or internal corporate budget quota)
Is there anyone who doesn’t know the cost? Since it’s a request for help, I have to reply myself as well; here’s my understanding: I think that owners generally prepare the base bid amount based on estimates, and EPC firms surely also quote their prices using such estimates (as in the petrochemical industry). However, it’s necessary to conduct market research on important equipment and materials in advance. The costs associated with construction and installation should be set at a level that is higher than the estimated amounts. Contractors need to adjust the estimated figures and budget figures when submitting bids; based on their technical plans, they must recalculate labor rates, material costs, and other related expenses, and then compare these figures with the estimated and budgeted values. In short, for an individual rate, labor, materials, and overhead costs along with profits and taxes are converted into a comprehensive rate; as a result, the estimated cost may be higher or lower than this rate. However, during the project budgeting process, discussions are held with the general contractor and the owner regarding the application of the quotas. If understood in this way, it would be somewhat convenient if the design institute prepares a preliminary estimate before entering the EPC bidding process.
I learned it, forgot it; I’ll go read the material again before answering you
These days, comprehensive unit prices are generally determined based on the bill of quantities! For the owner, it is easiest to select the winning bidder based on the comprehensive unit prices in the bill of quantities submitted by various bidders ； For bidders, the comprehensive unit price in the bill of quantities best reflects their capabilities and management level! If LZ needs to prepare the tender documents, they can specify in them the method for submitting bids: comprehensive unit price based on a list / quotation using fixed quota rates. This post was last edited by clguan on 2008-3-19 22:21]