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Section 1: Concept of Quotas. Construction project quotas refer to the standard quantities of labor, materials, and machine hours required to produce a certain unit of qualified product under normal construction conditions. Purpose of implementing quotas: By scientifically and reasonably setting quotas and carrying out dynamic management through timely updates and adjustments, it is possible to strictly control the consumption of human, material, and financial resources during the construction process, thereby producing building products that meet quality standards and achieving the best economic benefits. Quotas serve as an effective tool for achieving the best economic benefits in various tasks involved in building installation activities, such as planning, design, construction, and installation, and they also act as a standard for measuring and evaluating the performance of these tasks. Quotas are an essential condition for enterprises to implement scientific management; without quotas, scientific management in enterprises is impossible. Classification of quotas: Classified by production factors: labor quota, material consumption quota, and machine shift quota. These three quotas serve as the basis for establishing various other quotas. Classified by compilation procedures and purposes: construction quotas, budget quotas, preliminary estimate quotas, and estimation indicators. Classified by the nature of professional costs: civil engineering quotas, installation engineering quotas, municipal engineering quotas, decoration engineering quotas, etc. Classified by the issuing authority and scope of application: national unified quota, regional unified quota, and enterprise quota. At present, the main quota standards we use in the Shanghai area include: construction quotas, material consumption quotas, Shanghai’s unified quota for the cost of construction machinery per shift, Shanghai’s budgeting quotas for construction projects, summary tables of unit prices for Shanghai’s construction project budgets, Shanghai’s comprehensive construction project quotas, Shanghai’s budgeting quotas for decoration projects, the national unified quota for installation projects along with the corresponding summary tables of unit prices in Shanghai, as well as other related cost quota standards. Section 2: Budget Quotas. For construction project budgets, the quota currently in use is the “93” Jianding quota. The 2000 version of the quota has not yet been put into actual use. Budget quotas are standards for determining the quantities of labor, materials, and machine hours required for a certain number of units of sub-projects or structural elements. For example: for quota code 1-2, in the case of manual earth excavation (with a burial depth of up to 1.5m), 24.73 man-days of labor are required to excavate 100 m3 of soil, while 5.97 machine-shifts are needed for electric single-stage centrifugal pumps (φ100). Of course, there is no material section included here; this is just an example. Additionally, the components of each individual item can be seen in the budget sheet on the appendix page of this lecture notes. (1) Scope of application: The budget quota for construction projects in Shanghai is applicable to new construction and expansion projects of general industrial and civil buildings; it is not applicable to renovation, restructuring, demolition, temporary projects, as well as special projects such as those related to national defense and scientific research. (II) The role of budget quotas: 1. They serve as the basis for formulating comprehensive quotas, estimated quota values, and project cost indicators. In other words, the budget quota reflects the consumption level of the most basic unit – the operational process. 2. It serves as the basis for determining the direct costs of construction projects. The current budget quota consists of three elements: quota consumption, budget price, and costs. The standard consumption amount is the legal basis for calculating the direct costs of a project. The budget price is a key component of the budget quota; under the planned economy system, it served as the legal basis for determining the direct costs of construction projects. In the current socialist market economy system, the quota-based budget price has shifted from being mandatory to serving as a guiding figure. The original costs of labor, materials, and machinery hours must be converted into budget prices through a certain process before they can serve as a basis for calculating expenses based on the base price of construction projects. The discrepancy between the budgeted unit prices and market prices is addressed by issuing relevant documents that specify a material variation coefficient for secondary materials, while primary materials, labor rates, and machinery costs are adjusted on a case-by-case basis. 3. It serves as the basis for accounting in construction and installation enterprises. The indicators for labor, materials, and machine-hour consumption specified in the budget quotas represent the maximum standards for such consumption in construction and installation projects. Economic accounting by enterprises must be based on these budget quotas in order to determine the extent to which they can improve labor productivity and reduce the amount of materials and machine hours used. It plays a positive role in improving corporate management and strengthening economic accounting. For a long time, budget quotas have served as the basis for preparing construction drawings budgets, setting base prices for construction tenders, and finalizing project settlements. They are also an important basis for fostering market competition during the construction phase and for concluding contracts between contractors and clients. Additionally, they form the foundation for assessing the value of buildings and fixed assets, as well as the basis for calculating other construction-related costs such as survey and design fees, management fees for the project owner, and general contracting fees. The role of budget quotas is quite significant, having far exceeded their original purpose. 4. It serves as the basis for settling accounts with labor subcontracting teams. At present, when settling accounts with such teams, we follow the \"93\" budget quota. (III) Content of the budget quota: The budget quota consists mainly of five parts: general instructions, rules for calculating building area, detailed explanations for various components, a list of quota items along with appendices. 1. General Introduction: The general introduction mainly explains the principles for compiling the quotas, the basis for their compilation, their scope of application, and the role of these quotas. It also explains the factors that were taken into consideration and those that were not when setting the quotas, as well as the usage methods and relevant regulations. Therefore, before using the budget quota, one should first understand and master the general instructions. 2. Rules for calculating floor area: The rules for calculating floor area specify the scope and methods for determining floor area, as well as the areas that cannot be included in the calculation of floor area. 3. Division description: It mainly covers the main items and tasks included in the various sub-projects, explanations regarding issues encountered during preparation, certain regulations for implementation, handling of special situations, and the rules for calculating the quantities of each sub-project. It is an important part of the quota, serving as the basis for implementing the quota and calculating the volume of work; it is essential to have a thorough understanding of it. 4. Quota item list: The quota item list is a key component of budget quotas, and it generally consists of project details, quota units, an item list, and notes. In the project schedule, labor performance is presented by job type, number of workdays, and total number of workdays, while wage grades are determined based on the overall (average) grade ； The material column lists only the quantities of major materials used; minor materials are indicated as “other materials”. For those work items that require machinery, the number of machine hours needed is specified, representing the quota indicators for labor, materials, and machine hours for that particular work item. 5. Appendices and attachments are listed at the end of the budget quota, including the table for determining the budget prices of building materials ； Table of material, finished product, and semi-finished product loss rates ； Comprehensive Table for Determining Mechanical Man-hour Costs. Section 3: Determination of Labor, Materials, and Machinery Shift Consumption in Budget Quotas I. Labor (1) Determination of labor consumption indicators: The level of labor consumption in budget quotas, as well as the ratio between skilled workers and unskilled workers, are determined on the basis of labor quotas; the number of workdays required for labor in these quotas is calculated through relevant specifications. (II) Composition of labor consumption indicators: The labor consumption indicators in the budget quota include all the amounts of labor required to complete a particular sub-project. 1. Basic labor force. It refers to the main amount of labor required to complete a specific sub-project. For example, the labor required for laying bricks to construct various types of walls, mixing mortar, and transporting bricks and mortar. 2. Other labor arrangements. It are the man-days that supplement the consumption of basic labor. Based on their different tasks, they are further divided into the following three categories: (1) Labor for long-distance transportation. It refers to labor costs associated with transporting materials and semi-finished products over the distances specified in the labor quota. (2) Auxiliary labor. Refers to the labor required for processing materials on-site. Increased labor costs such as screening sand and applying lime slurry. (3) Labor using manual amplitude differences. It refers to those incidental labor tasks that are not included in the labor quota but are unavoidable under normal construction conditions; these include the following: A、the downtime that is inevitable due to the sequence of work between different types of skilled workers, as well as the interaction and coordination between civil engineering works and installation work. B. The inevitable downtime caused by the temporary suspension of water and electricity supply due to the relocation of construction machinery between different units within the site, as well as the movement of temporary water and electricity lines during the construction process. C、Labor for water and electricity repairs during construction. D. Operation time affected by quality inspections such as the acceptance of concealed works. E. The operation time affected by the change in operation location between individual construction projects at the site. F. The inevitable labor required for chiseling, repairing, cleaning, etc., resulting from cross-task operations during construction. G. Inevitable small amounts of direct, sporadic labor during the construction process. (III) The current market labor cost indicators are taken from the information on labor market prices for construction projects in May 2003. Job Title, Unit of Measurement, Unit Price (yuan), Remarks: General worker, man-day, 18–28; Municipal general worker, man-day, 23–26; Installation general worker, man-day, 30–39; Carpenter, man-day, 30–40; Wood finishing and waterproofing worker, man-day, 26–34; Plasterer, man-day, 27–38; Plasterer, man-day, 25–40; Person responsible for installing wall and floor tiles (marble, granite); Painter, man-day, 22–36; Scaffolder, man-day, 24–32; Tile setter, man-day, 26–42; Form worker, man-day, 24–35; Person responsible for setting up and removing formwork; Steel worker, man-day, 24–35; Concrete worker, man-day, 24–35. II. Materials: Material consumption indicators represent the standard quantities of various types of materials, fuels, semi-finished products, or accessories required to produce qualified products, under conditions of material conservation and rational use. (1) The components of the budget quota material consumption indicators are classified into four categories based on their nature of use, purpose, and quantity used, namely: 1. Primary materials refer to those materials that directly constitute the physical structure of the project. For example: standard aggregates, cement, yellow sand, gravel, rebar, wood, etc. 2. Auxiliary materials are also those that directly constitute the structural elements of a project, but they account for a smaller proportion. For example: welding rods, wire rods, lime putty, etc. 3. Consumable materials, also known as tooling materials. Materials that are used multiple times during construction but do not form part of the physical structure of the project. Such as templates, scaffolding, etc. 4. Secondary materials refer to miscellaneous materials that are used in small quantities, have low value, and are difficult to quantify; they can be estimated for calculation purposes. For example: horse manure paper, nylon thread, etc. (II) Composition of the budget price for materials: The budget price for materials used in construction projects (including finished and semi-finished components) refers to the price at which the materials are delivered from their source (or place of delivery) to the site warehouse (i.e., the location where materials are stored on the construction site). In construction and installation projects, the costs of materials and equipment account for about 70% of the total cost, and they constitute the main component of the direct project costs. The level of prices for materials and equipment has a direct impact on the cost of construction; therefore, accurate and thorough calculations are necessary. It is also important to avoid unreasonable fluctuations in these prices, so as to reflect the true cost of the project accurately. This facilitates the proper formulation of construction plans and the implementation of investment plans, as well as helps improve a company’s financial accounting and management practices. Material budget price = Original price + Shipping and handling fees + Transportation losses. III. Cost of machine shifts (I) Components of machine shift costs: 1. First category of costs, including: Depreciation of the machine per shift, major repair costs, regular maintenance costs, installation and dismantling costs, and transportation costs outside the site. 2. The second category of costs includes: the salaries of crew members on board, as well as costs related to power (electricity, wind, etc.) and fuel. 3. Road maintenance fees and vehicle/ship usage fees. (II) Standards for formulating the quota for machinery shift costs 1. The quota for machinery shift costs is calculated based on 8 hours per shift. 2. Wellpoint dewatering is calculated on a per set-per day basis (in special cases). Section 4: Cost Standards for Building Installation Projects in Shanghai The cost standards consist of direct costs (including other direct costs), comprehensive indirect costs, profit, startup costs, other expenses, and taxes. I. Direct Costs Direct costs are made up of statutory direct costs and other direct costs. Other direct costs include: 1. Costs associated with the use of production tools and equipment ； 2. Inspection and testing fees ； 3. Re-measurement for project positioning, site handover, and site cleanup costs ； 4. Cost of temporary facilities (where the enclosure is made of bamboo fences; if it is built with bricks, advertising board fences, or other high-quality materials, an additional cost should be calculated). Other direct costs = Standard direct costs × Rate for other direct costs. II. Comprehensive indirect costs: Comprehensive indirect costs refer to the expenses incurred by construction companies in organizing and managing construction activities and business operations. Including: 1. Staff salaries ； 2、Staff wage surcharge ； 3. Office expenses ； 4. Travel expenses ； 5. Fixed asset usage fee ； 6. Fee for using administrative tools ； 7. Funds for employee education ； 8. Labor insurance premiums ； 9. Unemployment insurance benefits ； 10. Labor protection expenses for staff ； 11. Taxes (referring to property tax, vehicle and vessel use tax, land use tax, stamp duty, etc., that enterprises are required to pay in accordance with regulations) ； 12. On-site material procurement and storage fees ； 13. Loan interest expenses ； 14. Expenditures on housing reform ； 15. Funds for business activities ； 16. Other expenses (including: sewage discharge fees, computerization costs, drawing preparation fees, cleaning and maintenance costs, landscaping costs, management fees for external agencies, typhoon and flood prevention costs, embankment protection costs, militia training fees, and benefits related to military service), etc. Comprehensive indirect costs = Direct costs × Comprehensive indirect cost rate. III. Profit calculation method: Profit = (Direct costs + Comprehensive indirect costs) × Profit rate. IV. Startup costs refer to individual expenses, including the following aspects: 1. Costs for on-site safety and civilized construction measures ； 2. Technical measures fee ； 3. Two freight charges for refusals ； 4. Acceleration measures fee ； 5. Award for Early Completion of Project ； 6. Additional costs for construction under special conditions ； 7. Agency fees ； 8. Special product protection fee ； 9. Engineering insurance premium ； 10. Others. V. Other cost components: 1. Fixed-amount preparation and management fee ； 2. Project quality supervision fee ； 3. Superior (industry) management fees. Calculation method: Fixed direct cost × Rate