Fees for project design
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I recently participated in the evaluation of a project; based on the estimated investment costs, the design cost was over 20 million yuan, but after applying discounts it dropped to around 8 million yuan. I wonder if this is normal
Normal. The market conditions are poor, and the volume of projects has significantly decreased. In order to maintain their business volume and keep their employees employed, construction companies must be willing to cut costs by offering lower bids, in the hope that the market situation will improve. Perhaps by the end of 2016 or 2017, a number of companies (or design institutes) that can no longer sustain themselves will be acquired.
This post was last edited by Huang Yi on 2015-12-18 at 10:11. Currently, and probably in the future as well, given the development of the client market at present, this should be quite normal. . . . After the separation of pricing from hourly or workload-based rates, I have also seen prices that are drastically lower than those. . . Life in engineering design is not easy these days
Great responsibility, high risks, and high levels of knowledge required – why has engineering design fallen to such a state? *^_^* . Today I saw a postdoctoral researcher from Tsinghua University die in an experiment explosion. The work safety supervision agency only knows how to impose fines. I don’t know either; maybe invest some money to upgrade things for everyone
This year I’ve seen things that are even worse: a basic design for over a billion devices costs 500 yuan, which isn’t even enough to cover the cost of a single business trip. But this is an extremely abnormal phenomenon.
This is quite normal. If everything were to be done according to the overall budget, in some projects imported equipment would account for the majority of the costs. In fact, the design institute doesn’t need to worry too much about the equipment aspect; efforts are still made to find compromises in order to enhance competitiveness. That’s how we conduct tenders; since the project investment is small, all design firms provide approximate quotes based on man-hours.
I guess they do the infrastructure work for free in order to focus on getting opportunities for detailed design or general contracting; otherwise it’s just about generating sales, as there’s no such thing as a free lunch in this world. . . .
Many owners simply remove the equipment investment and use the remaining funds as investment for the project itself. . . . . . Based on the reference pricing standards, it’s simply not possible to come up with a feasible price; it’s better to quote based on the daily labor cost
Many owners simply remove the equipment investment and use the remaining funds as investment for the project itself. . . . . . Based on the reference pricing standards, it’s simply not possible to come up with a feasible price; it’s better to quote based on the daily labor cost
500 yuan, am I reading that correctly? This is hardly a market. No matter how much equipment is imported, there’s no need to worry too much about design, but conditions still need to be set. All the basic information comes from the design, and if any problems arise, the design team is also responsible for that.