The main differences between the two pricing models are: (1) the composition of project price is different.
In addition, there is another form of fixed unit price, which implements the lump sum price per square meter of construction, which is often used in unconventional bidding projects.
It has the characteristics of spontaneity and independent control.
In the project quota pricing method, the project price includes direct project cost, indirect cost, profit and tax; In the pricing method of bill of quantities, the project price includes five parts: divisional and subdivisional project cost, measure project cost, other project cost, fees and taxes.
(10) Guarantee matters related to the performance of the contract and the payment of the price..
(3) When the project construction changes, the adjustment method, claim method, time limit requirements and amount payment method of the project price.
For example, in the cost plus remuneration contract, the final contract price of project construction will be calculated according to the actual cost of the project plus a certain remuneration.
Article 3.1 of the 2013 code for valuation with bill of quantities issued on December 25, 2012 stipulates that the valuation with bill of quantities must be adopted for the development and contracting of construction projects invested by state-owned funds.
The contents include: (1) the amount, payment time limit and deduction method of advance project payment.
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For another example, in the adjustable price contract, the contract price can be adjusted according to the agreement of both parties, and both parties agree on the adjustment method of the contract price in the special terms.
(3) Pricing basis is different.
The parties to the contract may agree on other forms of contract price in the special conditions of contract.
(4) Solutions to disputes over project price.
The project price is also the place where the contractor and the employer often have disputes.
The bill of quantities refers to the detailed list containing the names and corresponding quantities of divisional and subdivisional works, measures and other items of the construction project, as well as the items of fees and taxes.
Quota refers to the quantity benchmark of labor, materials, construction machines and tools, shifts, construction period days and relevant rates consumed to complete the qualified construction and installation works with the specified unit of measurement under normal construction conditions.
Unit price contract refers to the construction contract of construction project in which the parties agree to calculate, adjust and confirm the contract price with the bill of quantities and its comprehensive unit price.
The contract unit price will not be adjusted within the agreed scope.
(8) Cost of safety measures and accidental injury insurance.
According to the project price settlement method, the project price is divided into three parts: project advance payment, project progress payment and project completion price.
The project quota pricing method shall not only calculate the quantities during settlement, but also adjust the conversion quota or charge rate according to the policy documents; The bill of quantities pricing method only calculates the quantities during settlement, and the comprehensive unit price agreed upon when winning the bid remains unchanged.
Both parties have great disputes about the basis, principle and amount of the project price.
(5) The scope and range of risks and adjustment methods beyond the agreed scope and range.
In addition, the employer and the Contractor shall agree on the following project price settlement matters in the construction contract: according to the measures for project price settlement, the employer and the Contractor shall agree on matters related to project price settlement in the construction contract.
The project price is the core content of the construction contract of the construction project.
The employer and the Contractor shall agree on the pricing standard or method of the project in the construction contract.
Total price contract refers to the construction contract of construction project in which the parties agree to calculate, adjust and confirm the contract price based on the construction drawings, priced bill of quantities or budget and relevant conditions.
(6) Settlement and payment method, amount and time limit of project completion price.
Paying the project price according to the time, amount and payment conditions agreed in the contract is not only the main obligation of the employer, but also the main right of the contractor.
The project quota pricing takes the quota as the only basis for unified pricing by the state, and the unit price of manpower, materials and machines is calculated according to the price information issued by the project cost management department; Bill of quantities pricing is the project price independently determined by both parties according to the changes of market supply and demand.
(9) Construction period and reward and punishment methods for advance or delay of construction period.
China began to implement the code of valuation with bill of quantities of construction projects on July 1, 2003.
The parties to the contract shall agree on the scope of risk included in the total price and the calculation method of risk cost in the special conditions of contract, and agree on the adjustment method of contract price beyond the scope of risk.
In each case, the disputes about the project price are often different.
The employer and the Contractor shall select a form of contract price in the contract agreement.
(2) The settlement methods of project price are different.
The total contract price will not be adjusted within the agreed scope.
Some are about which contract to settle the project price, some are about how to understand the project price settlement standard agreed in the same contract terms, and some are about whether the visa should change the project price on site.
The parties to the contract shall agree in the special conditions of contract on the risk range included in the comprehensive unit price and the calculation method of risk cost, and agree on the adjustment method of the contract price beyond the risk range.
(7) Amount, withholding method and time limit of project quality assurance (warranty) fund.
There are two pricing modes in China: project quota pricing and bill of quantities pricing.
The valuation with bill of quantities is a valuation mode that is compatible with the market economy and in line with international standards, which is conducive to reasonably determining the project cost in the environment of fair competition.
According to the 2017 model text of construction contract, the construction contract of construction project includes unit price contract, total price contract and other price forms.
(2) Payment method, amount and time limit of project progress payment.
This price form is mainly applicable to projects that need to be carried out immediately (emergency projects), new projects, high-risk projects, etc.
