For example, various cooling measures that must be taken for mass concrete are clearly specified in a certain engineering technical clause, and the commercial clause also clearly stipulates that all expenses caused by these Measures shall be included in the tender offer.
Strong specialty, complex situation, many required audit materials, controversial problems and extremely arduous tasks.
When performing the contract, he tries his best to transfer risks to the owner as much as possible and strive for more interests by means of supplementary compensation agreement, project change and claim.
However, the Contractor’s bid price did not consider the concrete cooling cost, but required to change and increase the water cooling facilities and costs, which unreasonably increased the project cost.
It is very difficult to conduct a comprehensive cost audit on the authenticity and legitimacy of construction and installation engineering costs within a limited audit time.
When signing the contract for some projects, according to the characteristics of the project itself, the general terms in the model contract were modified through the provisions of the special terms of the contract, but the settlement of the project was not based on the provisions of the special terms and the general terms.
The risk of material price rise shall be considered by the contractor in the bidding quotation.
If cracks appear in the main works due to inadequate construction technology and management during the construction of a project, the owner ignores the contract agreement that the contract price includes the costs of completion, detection, maintenance and defect repair of all projects, compensates the contractor for the cost of crack repair, and unreasonably increases the project cost.
However, during the settlement of the project, the price difference of all main materials is adjusted, which increases the project cost in violation of the contract.
Some owners simplify management, do not make counterclaims against the contractor, and even compensate relevant expenses.
Due to the supervision unit’s lax control, some changed unit prices are not set in strict accordance with the above principles, increasing the project cost..
The reason for increasing the project cost: in order to win the bid, the contractor often makes high-standard commitments to various contracting obligations such as construction period and quality, and generally adopts the strategy of low price bidding in bidding quotation.
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The project cost is increased due to the inadequate performance of duties by the owner and the supervision unit and the lack of cost management experience.
However, during the implementation of some projects, in order to facilitate their management, the owner ignored the above commitments and signed supplementary agreements on various objectives and quality management without improving the standards, so as to increase the project cost in the form of bonus.
▍ the special terms of the contract are not strictly performed, the settlement is carried out according to the general terms, and the project cost is increased.
▍ the change unit price is not determined according to the principles agreed in the contract terms.
Generally, according to the contract, the Contractor shall deliver compliant and excellent construction products.
▍ through engineering change and claim, the risk borne by the contractor is transferred to the owner.
The state has issued the model contract and formulated the general terms of the contract for engineering projects in different industries.
▍ in order to win the bid, the contractor often makes various commitments in the bidding documents for all links of construction management, construction risks and delivered construction products.
Construction and installation project cost audit is also an important means to reduce project cost, save construction cost, improve economic benefits and prevent corruption.
Therefore, the key to the success or failure of project cost audit is to highlight the key points and appropriate methods.
It is generally agreed that when there are sub items in the bill of quantities applicable to the change, the unit price of the sub item shall be adopted; If there are no sub items applicable to change in the bill of quantities, the unit price or total price of similar sub items shall be referred to as the basis of change evaluation within a reasonable range, and the unit price or total price after change shall be determined by the supervision unit and the Contractor through negotiation; If there is no similar sub item in the bill of quantities for reference, the supervision unit, the owner and the Contractor shall negotiate to determine the new unit price or total price.
For example, according to the general terms of an industry, the price difference of main materials of the project shall be settled according to the index method according to the price index published by the state and the weight of different divisional and subdivisional works, and the special terms of the project have modified the above provisions.
However, during the construction process, due to inadequate construction management, some divisional works have quality problems, and the cost of subsequent treatment of these quality problems is often large.
Generally, the technical and commercial terms of the contract have clear provisions on the construction process, measures, process standards and relevant construction specification basis of each project list sub item, and clearly agree that the relevant expenses shall be included in the tender offer.
However, the cost audit of construction and installation project is quite different from the general financial revenue and expenditure audit, involving all links of project site management, such as project survey and design, bidding, contract, quality and progress control, measurement and payment, etc.
For example, a project contractor has made detailed commitments on the specific completion time, quality requirements, excellent rate and safe and civilized management on the construction site in the tender document, and during construction, the owner has signed various forms of supplementary agreements on objective, quality, safe and civilized management for the contractual obligations to be performed by the above contractor, and agreed to pay various forms of bonuses, Violate the substantive terms of the original contract and increase the project cost.
However, in the process of implementation, the contractor puts forward various changes and claims for various reasons to avoid its contractual obligations and increase the project cost.
There are clear provisions on the change of unit price in the bill of quantities in the contract for increasing the project cost.
According to the practical experience of project cost audit in recent years, the problem of illegally increasing the project cost without strictly performing the contract is the most common in the current project settlement, and has the greatest impact on the project cost.
▍ if the Contractor fails to fully perform its contractual obligations, the project losses shall be borne by the owner.
It is agreed that except for the materials subject to policy price adjustment, the prices of other materials will not be adjusted.
