The price of steel bar rises sharply, the second coping strategy of the construction party

When the price of steel bars and other materials fluctuates greatly, the construction party shall pay close attention to the notice, guidance or implementation opinions issued by the construction administrative department of the state or province, autonomous region or municipality directly under the central government, the industry construction administrative department or its authorized project cost management organization

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Here are some examples: on October 19, Zhuhai Municipal Bureau of housing and urban rural development issued a notice specifying the following contents: for the construction projects that have started or signed the construction contract before the release of this article, sand, gravel, cement, concrete and concrete products Mortar and other materials: if the price difference is not adjusted as agreed in the construction contract, if the price risk range and price difference adjustment method are not agreed or the agreement is unclear, both the employer and the contractor can re negotiate and sign a supplementary agreement to determine the adjustment method of the above material price difference and adjust the material price difference in the quantities after June 2018

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The original text is as follows: Zhuhai housing and urban rural planning and Construction Bureau’s implementation opinions on strengthening the price risk control of construction engineering materials in our city

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Since the beginning of this year, the price of engineering sand in our city has been rising continuously

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The price of engineering sand in the middle and late July has increased by about 80% compared with that in June, which has led to the rising price of building materials using engineering sand as raw materials and the tension between supply and demand

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This time, the price of construction materials fluctuated abnormally, and there were many objective factors, which were far from being foreseen and avoided by previous experience, and brought a series of adverse effects to the construction market of our city

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In order to reasonably determine and effectively control the project cost, ensure the project quality and safety, and maintain social stability, according to the contract law of the people’s Republic of China, the administrative measures for contract awarding and contract pricing of construction projects (Order No

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16 of the Ministry of housing and urban rural development) and the administrative provisions for construction project cost of Zhuhai City (Order No

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93 of the Zhuhai Municipal People’s Government), and in combination with the actual situation of Zhuhai City, This paper puts forward the following implementation opinions on strengthening the price risk control of construction materials in our city, please implement them carefully

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   1、 Increase the supply source of engineering sand and adjust the relationship between supply and demand in the market   To further promote the construction and management of engineering projects in accordance with the provincial government’s relevant work requirements of “stabilizing growth, promoting reform, adjusting structure, benefiting people’s livelihood and preventing risks”, the construction administrative departments of all districts should take the initiative to establish a dynamic cooperative working mechanism for the management of building materials such as sand and stone together with the water conservancy, land resources and environmental protection departments of all districts, In order to meet the demand of the construction industry for qualified engineering sand, we should expand the construction of machine-made sand processing plant, strictly control the technical standard requirements of machine-made sand, and open up multi-channel sources of sand

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Second, vigorously promote the application of green building materials, guide the construction industry to adopt green building materials that meet the requirements of environmental protection, energy saving, land saving, material saving and water saving, and replace sand based products with green building materials

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2、 To strengthen the supervision and ensure the healthy and stable market, the construction administrative departments of all districts should pay close attention to the risk changes of the abnormal fluctuation of the price of construction materials in the near future, guide and standardize the main market transactions and contract performance behaviors of all construction parties, effectively do a good job in the work of eliminating evil and chaos, and maintain the healthy and stable construction market of our city

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3、 Risk sharing, negotiation, adjustment and reasonable determination of project cost

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When compiling and reviewing project investment estimation, design budget, construction drawing budget, bidding control price, bidding quotation, contract signing and project settlement (final accounts), both parties should further enhance their awareness of project risk, Fully consider the impact of abnormal fluctuation of construction material price on the project cost, according to the principle of risk sharing, negotiate to adjust and reasonably determine the project cost( 1) In the whole process of project construction, the construction unit should fully consider the impact of material price fluctuation on project quality, safety, construction period and cost( 2) When bidding, the bidder shall fully consider the risk factors existing in the price fluctuation of construction materials, make reasonable quotation, ensure the project quality and construction safety, and ensure that the project is delivered on schedule( 3) When signing the contract, the employer and the contractor should fully consider the impact of the price risk of construction materials on the implementation of the project during the construction period, specify the scope of main materials with adjustable price in the contract, reasonably agree on the risk range of material price fluctuation and the adjustment method beyond the range, and share the risk caused by the price fluctuation of main materials fairly and reasonably( 4) In the project implementation stage, if the price of sand, gravel, cement, concrete, concrete products, mortar and other materials fluctuates abnormally, the contract price adjustment method can be renegotiated according to the principle of article 9.8.2 of code for valuation with bill of quantities of Construction Engineering (GB 5005-2013), The specific contract price can be adjusted according to the following ways: 1

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For the construction project that has started or signed the construction contract before the publication of this article, if the construction contract stipulates that the above material price difference will not be adjusted, the employer and the contractor can negotiate and sign a supplementary agreement to determine the adjustment method of the above material price difference, and adjust the material price difference in the quantities implemented after June 2018

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2

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For the construction project that has started or signed the construction contract before the publication of this article, if the risk range of the above material price and the adjustment method of the price difference are not agreed or the agreement is unclear in the construction contract, both parties can negotiate and sign a supplementary agreement to determine the adjustment method of the above material price difference, Adjust the material price difference in the quantities implemented after June 2018

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4、 Increase the frequency of information release, do a good job in cost service, the district construction administrative departments and the municipal construction project cost management institutions should strengthen the monitoring, pre research and early warning of the price trend of main building materials and labor, and sort out and release the price information according to the ten day or half month calculation for the materials with abnormal price fluctuation; According to the principle of “seeking truth from facts, being objective and fair”, it is necessary to earnestly and quickly mediate the disputes of building materials price and contract cost proposed by both parties, so as to resolve the contradictions, so as to promote the smooth implementation of the project construction

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Because of the soaring prices of cement and sand and stone, people are constantly complaining

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This also brings a series of chain reactions, such as the slow progress of the project or even forced to stop work, it is difficult to guarantee the quality of sand and stone, which seriously affects the quality and safety of engineering construction

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However, this soaring trend seems to continue..

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Skyrocketing prices of building materials? All provinces urgent dispatch regulation! Notice on strengthening the price risk control of building materials date of issue: 16:50, September 4, 2018    Shaanjiffa [2018] No

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284 housing and urban rural development bureaus (Construction Commission) of various districts, housing and urban rural planning and construction bureaus of Yangling Demonstration Zone, planning and construction bureaus of Xixian New District, housing and urban rural planning and construction bureaus of Hancheng City, housing and urban rural construction bureaus of Shenmu city and Fugu County, and related enterprises: Recently, due to the influence of various market factors, the sand, stone, cement, sand, sand, sand, sand, sand, sand, sand, sand, sand, sand, sand, sand, sand, sand, sand, sand, sand The prices of dry mixed mortar, commercial concrete and other building materials have increased significantly, especially in the past two months, there has been a serious shortage of individual materials, resulting in a sharp rise in the prices of building materials in the short term

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All parties of the project should do a good job in dealing with the risks under the changing market environment, and pay attention to the following aspects according to the principle of market risk sharing, so as to ensure the smooth progress of the project construction

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1

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It is forbidden to force the contractor to bear all risks in the project contract

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2

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In the contract of new construction project, we must fully consider the risk of abnormal fluctuation of material price, and reasonably determine the responsibility and risk scope of each party according to the specific situation of the project and its own ability

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3

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There is no risk agreement or the risk agreement is not clear in the contract of construction in progress

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Both parties should objectively face the reality of market price fluctuation and reasonably share the risk

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4

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Commercial concrete and ready mixed mortar enterprises are strictly prohibited to take advantage of the opportunity to increase their prices, and the management departments at all levels should seriously investigate and deal with the suspected enterprises.

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