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HANOI UNIVERSITY OF CIVIL ENGINEERING FALCUTY OF ECONOMICS AND CONSTRUCTION MANAGEMENT DEPARTMENT OF CONSTRUCTION ECONOMICS PROJECT DETERMINE THE BID PRICE OF THE BIDDING PACKAGE ‘‘CONSTRUCTION OF THE STRUCTURAL COMPONENTS’’ Category: Detached House, Duplex House, Shophouse, Townhouse under Construction Investment Project V Residences SUPERVISOR: Ph.D NGUYEN TUAN ANH STUDENT: STUDENT ID: CLASS: CODE: DANG PHAM VIET ANH 1500665 65KTE 767411 Hanoi – 2023 PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH INTRODUCTION I The role and purpose of construction bidding Role of construction bidding The bids for construction works could bring advantages from different points of view: For the authority: o Improve the capability of the officers from the state to local authorities o Increase the management role of the authority o Achieve high-quality construction works o Save the Budget State For the owner: o Choose the most suitable contractor compared to the owner’s requirements o Prevent the monopoly of some contractors, increase the competitiveness and the role of the owner to the contractor o The responsibility and obligations of the Owner which is authorized by the State for implementation of an investment project will be clarified For the contractor: o Ensure the equality to all the contractors Due to competitiveness, each contractor needs to develop, research, apply technology advances, suitable business models to win the bids, as a contribution to the development of the construction industry in general Purposes of construction bidding Construction bidding is to provide the owners with the optimum price for the project and provide multiple entities the opportunity to compete for work II The role of bid prices in construction bid According to Government’s regulations: “The bid price is the price in bid document after deducting the discount (if any), including all costs necessary to fulfill the requirements of the bid document on schedule The bid price is based on the production norm of the enterprises corresponding to the scientific – technological and the business strategy of contractor From there, each contractor has a different bid price Contractors with reasonable technological measures and low prices will be selected The bid price is the contractor's ability, which is the basis for investors to rank the contractors, thereby selecting the best contractor The bid price is an important indicator that plays a decisive role in the contractor’s ability to win the bidding, directly affecting the production and business results of construction enterprises III Project’s tasks Determining the bidding package price: “Construction the structural components, exterior finishes Category: detached house, duplex house, shophouse, townhouse under construction investment project “V Residences” Determining the bid price for the package: “Construction the structural components, exterior finishes Category: detached house, duplex house, shophouse, townhouse under construction investment project “V Residences” Comparing the bid package price and the bid price to decide whether to participate in bidding or not Present the bidding price in full unit price Topic data: Number of houses DL SL SH TH 7 Type of contract Project component Location Lump Sum Contract Foundation Bao Lam, Cao Bang DANG PHAM VIET ANH – 1500665 – 65KTE PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH CHAPTER THEORETICAL BASIS OF THE BID PRICES I Definition of construction bid price The bid price means the price stated by a tenderer in application for bid participation, quotation, including all costs for implementation of bidding package as required by dossier of bid invitation, dossier of requirement The bid price is determined based on the selected technical-technological solutions, norms, unit price, bidding strategies and management of contractors In case the contractor has a discount letter, the bid price is the bid package price after the discount II Contents and structure of construction bid price Contents and structure of construction bid price depends on the type of contract For Lump sum contract: Construction cost = T + GT + LN G + GTGT In which: o Direct cost: T = VL + NC + M Material cost: VL Labor cost: NC Equipment cost: M o Indirect cost: GT = C + LT + TT General cost: C Cost for temporary housing and construction management: LT Cost for some work cannot be determined form the design: TT Profit before tax: LN Value added tax: VAT Other cost: G III Methods of determining the bid price Input resources demand analysis Material demand analysis: VL = Q x ĐM NC = Q x ĐM Labor demand analysis: Construction machine demand analysis: M = Q x ĐM Determine price of input resources Determine the direct cost Material cost: VL = VL x ĐG NC = NC x ĐG Labor cost: Construction machine cost: DANG PHAM VIET ANH – 1500665 – 65KTE PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH M= M x ĐG Determine the indirect cost General cost shall be determined in percentage estimated or detailed estimate of each item Cost for the construction of makeshift houses for accommodation and administration on site The cost of work can not determine the volume of the design The one-time cost of equipment Cost for makeshift works Estimate the expected profit TL = i% x (T + GT) Determine the value added tax and construction cost summary TVAT = t% x (T + GT + TL) G = T + GT + TL + TVAT Determine the contingency cost IV Construction bid price process V Presentation the construction bid price in bids CHAPTER DETERMINING THE BID PRICE FOR THE PACKAGE CONSTRUCTION OF THE STRUCTURAL COMPONENTS’’ Category: Detached House, Duplex House, Shophouse, Townhouse under Construction Investment Project V Residences I Introduction of bid package and requirements of bids Bid package introduction Project’s name: Investment in construction of V Residences Owner: V Joint Stock Company (V.JSC) Name of bid package: Construction the structural components Category: detached house, duplex house, shophouse, townhouse under construction investment project of V Residences Location: Bao Lam – Cao Bang Characteristics of structural solutions: Based on the design drawings and the related documentation Contractor selection form: o Open bidding o Bids evaluation method: method of combination of technical aspect and price DANG PHAM VIET ANH – 1500665 – 65KTE PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH Summary of the requirements of the bids related to the determining bid price Table 2.1.1: Bill of quantities QUANTITY PER HOUSE No NAME OF WORK EARTHWORKS Excavation and leveling by excavator 1,25m3, soil grade II Soil excavation for strip footing manually, width ≤ 3m, depth ≤ 1m, soil grade II Soil embankment by hand compactor 70kg, soil compaction factor K=0,90 Soil transportation by 5-ton dump truck in radius 5km, soil grade II (next 10km) FOUNDATION Mixing concrete by mixers poured manually, leveling concrete, width ≤250 cm, stone 4x6, grade 100 Wooden formwork Strip footing formwork UNIT QUANTITY OF THE PROJECT DL SL SH TH 7 TOTAL DL SL SH TH 100m3 1,022 1,123 0,962 0,548 7,154 6,738 6,734 2,192 22,818 100m3 11,352 11,887 10,692 6,085 79,464 71,322 74,844 24,34 249,97 100m3 0,843 1,075 0,892 0,317 5,901 6,45 6,244 1,268 19,863 100m3 0,292 0,167 0,177 0,292 2,044 1,002 1,239 1,168 5,453 100m3 0,292 0,167 0,177 0,292 2,044 1,002 1,239 1,168 5,453 100m3 0,292 0,167 0,177 0,292 2,044 1,002 1,239 1,168 5,453 m3 10,237 11,748 9,445 5,901 71,659 70,488 66,115 23,604 231,866 100m2 0,192 0,22 0,185 0,115 1,344 1,32 1,295 0,46 4,419 DANG PHAM VIET ANH – 1500665 – 65KTE PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH 10 11 12 13 14 15 16 Ready-mixed concrete, poured by concrete pump, concrete foundation, foundation width ≤250 cm, stone 1x2, grade 250 Ready-mixed concrete, poured by concrete pump, concrete foundation wall, stone 1x2, grade 250 Wooden formwork Strip footing formwork Wooden formwork Wall bracing formwork Fabrication and installation of reinforcing steel Reinforced foundation, diameter < 10mm (steel grade CB240T) Fabrication and installation of reinforcing steel Reinforced foundation, diameter =10mm (steel grade CB400V) Fabrication and installation of reinforcing steel Reinforced foundation, diameter ≤18mm (steel grade CB400V) Fabrication and installation of reinforcing steel Reinforced foundation, diameter >18mm (steel grade CB400V) m3 41,313 39,181 32,946 19,21 289,191 235,086 230,622 76,84 831,739 m3 2,109 2,337 2,45 1,577 14,763 14,022 17,15 6,308 52,243 100m2 0,699 0,736 0,76 0,337 4,893 4,416 5,32 1,348 15,977 100m2 0,205 0,234 0,245 0,158 1,435 1,404 1,715 0,632 5,186 ton 0,39 0,491 0,479 0,259 2,73 2,946 3,353 1,036 10,065 ton 0,612 0,934 0,751 0,455 4,284 5,604 5,257 1,82 16,965 ton 0,271 0,273 0 1,897 1,638 0 3,535 ton 1,141 1,478 1,728 0,88 7,987 8,868 12,096 3,52 32,471 DANG PHAM VIET ANH – 1500665 – 65KTE PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH Requirements for quality and specifications of materials Concrete mortar used in the construction structures shall be crushed stone commercial concrete with 1x2cm aggregate, grade 250, with a slump of 14+/-2 cm Cement used in construction shall be produced according to the PC-30 rotary kiln technology as per the current TCVN (Vietnamese standard) Sand used in plastering and concrete shall be clean, with particle size and impurities meeting the current TCVN standards Steel used in construction shall belong to the AI and AII groups as per the current TCVN standards (AI for steel ≤ 8mm, AII for steel ≥ 10mm) The bricks used for construction shall be solid bricks produced by manufacturing plants with a brick grade of 75 (or as per the bid invitation) Construction mortar: Cement and yellow sand mortar, grade 50 (or as per the bid invitation) Plastering mortar: Cement and black sand mortar, grade 75 (or as per the bid invitation) Wood used for doors and door frames shall belong to group wood (or as per the bidinvitation) Glass used for window and door assembly shall be 5mm thick colored glass (or as per the bid invitation) Floor tiles: Locally manufactured ceramic tiles (or as per the bid invitation) Wall tiles: Locally manufactured ceramic tiles (or as per the bid invitation) Requirements of technological solution for the bid package Construction of soil excavation by backhoe excavator combined with manually repair Using dump truck to remove excess soils For main structures such as: foundation, column, slab, beam, using ready-mix concrete, poured by concrete pump Other structures: stairs, lintel, chajja, using concrete mixed by concrete mixer poured manually For formwork of foundation, beam, column, slab, stairs using steel formwork Other components use timber formwork Reinforcement work: reinforcing steel will be cut, bent as the design on site, installed manually at the positon which has been marked Finishing works: are technological solution which are being commonly used in civil buildings, hotels, villas, guest houses with the height corresponding to the number of floors ≤ floors (≤ 16m) Type of contract: Lump sum contract Requirements for capital advance, advance capital recovery and payment Pursuant to the Decree No 37/2015/ND-CP “Detailed regulations on construction contract” dated April 22, 2015 of Point b, Clause 5, Article 18, the contractor is received in advance for 15% of the contract value with the contract value from 10 – 50 billion The contractor will be received in advance for 95% of finished and inspected construction works according to stages after completing 30% of the contract value The contractor will be received in advance for 95% of finished and inspected construction works at the 2nd phase after completing up to 60% of the contract value (30% of the contract value) The contractor will be received in advance for 95% of finished and inspected construction works at the 3rd phase after completing up to 90% of the contract value (30% of the contract value) but deduct 10% of the advance value contract from the commencement of construction work The contractor is received the rest at the end of the contract but 5% of the contract value will be kept by owner during the maintenance phase or can apply the form of bank guarantee Introduction of contractor participating in bidding Name of contractor: V.A Construction Group Joint Stock Company o Total employees: 28915 employees DANG PHAM VIET ANH – 1500665 – 65KTE PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH o Direct employees: 21200 employees o Total value of fixed assets: 1161 billion VND No 10 11 12 Table 2.1.2 List of construction equipment and equipment of the contractor Equipment Unit Quantity Original Cost Wheel excavator 0,35m3 piece 420 million VND Tower crane piece 7,3 million VND Hoist piece 26 million VND Dump truck tons piece 13 320 million VND Dump truck tons piece 10 190 million VND Truck tons piece 10 300 million VND Welding machine 250-400 piece 3,2 million VND Concrete mixer 250L piece 17,5 million VND Internal vibrator phase electricity piece 16 3,5 million VND External vibrator piece 12 1,6 million VND Mortar mixer piece 14 2,2 million VND Steel scaffolding set 10 100 million VND Own working capital: 100% of total working capital demand Organizational structure of enterprise for each bid package: Construction manager: Chief engineer: 01 person Deputy construction manager: Engineer with seniority of 10 years: 01 person Technical staff: Civil engineer 02 persons Economic staff : Engineer, bachelor 02 person Other staffs: Vocational 01 person Watchman: 03 persons II Determine the bid package price Principles to determine the bid package price Based on bid quantity and design from the owner Estimating norms and construction unit price of provinces or cities The State’s current regulations on determining the price of construction estimate Notice price adjustment of provinces or cities Unit price index issued by Department Construction of Province or Ministry of Construction Type of contract specified in bids Legislations: o Circular 11/2021/TT-BXD dated Ausgust 31, 2021 on Guiding a number of provisions on determination and management of construction investment costs issued by The Ministry of Construction o Circular 12/2021/TT-BXD dated Ausgust 31, 2021 on Construction norms issued by The Ministry of Construction o Circular 13/2021/TT-BXD dated Ausgust 31, 2021 on Guiding methods of determination of techno-economic norms and takeoff of quantities of works issued by The Ministry of Construction o Decree 10/2021/ND-CP dated February 2, 2021 on The Management of construction investment costs issued by The Gorvernment o Decision 1801/QĐ-UBND dated October 04, 2021 about the Announcement of construction labor price in Cao Bang issued by UBND Cao Bang DANG PHAM VIET ANH – 1500665 – 65KTE PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH o Decision 1899/QĐ-UBND dated October 14, 2021 about the Announcement of the construction machines and equipment price in Cao Bang issued by UBND Cao Bang o Decision 44/2021/QĐ-UBND dated December 8, 2021 about the Announcement of construction materials price in Cao Bang issued by UBND Cao Bang Determine the bid package price Determine the costs of materials, labors, construction equipments DANG PHAM VIET ANH – 1500665 – 65KTE PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH Table 2.2.1 Costs of materials, labors, construction equipments No Work code HM * AB.21132 AB.11312 AB.65120 AB.41412 AB.42112 AB.42212 T* * AF.11111 AF.81111 Working list FOUNDATION EARTHWORKS Excavation and leveling by excavator 1,25 m3, soil grade II 22,818 = 22,818 Soil excavation for strip footing manually, width ≤ 3m, depth ≤ 1m, soil grade II 249,97 = 249,97 Soil embankment by hand compactor 70kg, soil compaction factor K=0,90 19,863 = 19,863 Soil transportation by 5-ton dump truck in radius 5km, soil grade II (next 10km) 5,453 Total: EARTHWORKS FOUNDATION Mixing concrete by mixers poured manually, leveling concrete, width ≤250 cm, stone 4x6, grade 100 231,866 = 231,866 Wooden formwork Strip footing formwork 4,419 = 4,419 Unit Quantity Unit price (đ) Material Labor Total (đ) Machine Material Labor Machine 1.830.392 17.537.709 32.240.381 1.297.641 19.338.994 25.775.043 100m3 22,8180 80.217 768.591 m3 249,970 128.977 100m3 19,8630 973.619 100m3 5,4530 1.817.917 0 9.913.101 100m3 5,4530 3.282.920 0 17.901.763 100m3 5,4530 6.976.200 0 38.041.219 m3 100m2 231,8660 513.043 200.786 4,4190 3.650.140 2.792.772 DANG PHAM VIET ANH – 1500665 – 65KTE 47.998 10 53.409.766 109.168.835 118.957.228 46.555.447 11.129.104 16.129.969 12.341.259