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Trang 1FALCUTY OF ECONOMICS AND CONSTRUCTION MANAGEMENT
DEPARTMENT OF CONSTRUCTION ECONOMICS
PROJECT DETERMINE THE BID PRICE OF THE BIDDING PACKAGE
Category: Detached House, Duplex House, Shophouse, Townhouse
under Construction Investment Project V Residences
SUPERVISOR: Ph.D NGUYEN TUAN ANH STUDENT: DANG PHAM VIET ANH STUDENT ID: 1500665
CLASS: 65KTE CODE: 767411
Trang 2PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH
INTRODUCTION
I The role and purpose of construction bidding
1 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
2 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
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CHAPTER 1 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 bidparticipation, quotation, including all costs for implementation of biddingpackage as required by dossier of bid invitation, dossier of requirement
The bid price is determined based on the selected technical-technologicalsolutions, norms, unit price, bidding strategies and management of contractors.In case the contractor has a discount letter, the bid price is the bid package priceafter 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:
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
1 Input resources demand analysis
Material demand analysis:
2 Determine price of input resources
3 Determine the direct cost
Trang 4PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH
4 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
5 Estimate the expected profit
TL = i% x (T + GT)
6 Determine the value added tax and construction cost summary
TVAT = t% x (T + GT + TL)
G = T + GT + TL + TVAT
7 Determine the contingency cost
IV Construction bid price process
V Presentation the construction bid price in bids
CHAPTER 2 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
1 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
Trang 52 Summary of the requirements of the bids related to the determining bid price
Table 2.1.1: Bill of quantities
Soil excavation for strip footing
manually, width ≤ 3m, depth ≤ 1m, soil
grade II
4
Soil transportation by 5-ton dump
truck in radius <= 1000m, soil grade
II
5
Soil transportation by 5-ton dump
truck for the next 4km in radius ≤5km,
Mixing concrete by mixers poured
manually, leveling concrete, width
≤250 cm, stone 4x6, grade 100
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9
Ready-mixed concrete, poured by
concrete pump, concrete foundation,
foundation width ≤250 cm, stone
1x2, grade 250
10
Ready-mixed concrete, poured by
concrete pump, concrete foundation
wall, stone 1x2, grade 250
13
Fabrication and installation of
reinforcing steel Reinforced
foundation, diameter < 10mm (steel
grade CB240T)
14
Fabrication and installation of
reinforcing steel Reinforced
foundation, diameter =10mm (steel
grade CB400V)
15
Fabrication and installation of
reinforcing steel Reinforced
foundation, diameter ≤18mm (steel
grade CB400V)
16
Fabrication and installation of
reinforcing steel Reinforced
foundation, diameter >18mm (steel
grade CB400V)
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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 2 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 ≤ 5 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
3 Introduction of contractor participating in bidding
Name of contractor: V.A Construction Group Joint Stock Company
Trang 8PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH
o Direct employees: 21200 employees
o Total value of fixed assets: 1161 billion VND
Table 2.1.2 List of construction equipment and equipment of the contractor
No Equipment Unit Quantity Original Cost
1 Wheel excavator 0,35m3 piece 4 420 million VND
2 Tower crane piece 2 7,3 million VND
4 Dump truck 9 tons piece 13 320 million VND
5 Dump truck 5 tons piece 10 190 million VND
6 Truck 9 tons piece 10 300 million VND
7 Welding machine 250-400 piece 8 3,2 million VND
8 Concrete mixer 250L piece 6 17,5 million VND
9 Internal vibrator 3 phase electricity piece 16 3,5 million VND
10 External vibrator piece 12 1,6 million VND
11 Mortar mixer piece 14 2,2 million VND
12 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
1 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
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
Trang 9PROJECT 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
2 Determine the bid package price
3 Determine the costs of materials, labors, construction equipments
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Table 2.2.1 Costs of materials, labors, construction equipments
Trang 11Fabrication and installation of reinforcing steel
Reinforced foundation, diameter < 10mm (steel grade CB240T)
14 AF.61110
Fabrication and installation of reinforcing steel
Reinforced foundation, diameter =10mm (steel
Fabrication and installation of reinforcing steel
Reinforced foundation, diameter >18mm (steel grade CB400V)
Trang 12PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH
4 Resources analysis and determine the differences of materials, labors, construction
equipment costs
a Determine the requirement of materials, labors and construction equipment
According to the detailed of volume of construction works and Construction estimating norms Circular 12/TT-BXD issued by Ministry of Construction, the volume of main materials and reclaimed materials consumed, labor consumed and construction equipment demand are
determined following these formulas:
o 𝑀 : Equipment consuming of construction consuming type j to complete the entire volume
of construction works of the bid package
o 𝑄 : The volume of construction work i
o Đ𝑀 : Estimating norms for main materials and reclaimed materials, labor and
construction equipment type j to complete one unit of construction work i
o 𝑛: Quantity of type of construction works of the bid package, according to the bidding documents
Table 2.2.2: Summary of materials, labor and machine consumption in direct cost
Trang 13PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH
o ĐG : cost of materials at the time of construction
o ĐG : cost of material in circular
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Table 2.2.3: Differences in total amount of materials
Trang 15PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH
c Determine the difference of labor consuming
Using the direct compensation method
CLNC = 𝑆𝐿𝑁𝐶 𝑥 (Đ𝐺 − Đ𝐺 )
In which:
o CLNC: total difference of labor
o SLNC : Number of working days of worker level j according to each sector
o j: Average level of worker of a sector
o ĐG : cost of labor in circular
o ĐG : cost of labor in reality
Table 2.2.4: Summary of employees and price difference of labor
No Level of work Unit Quantity Norm
price (đ)
Current price (đ) Difference
Total difference
1 Level 3,0/7 – Group 1 man-day 339,5646 157.289 157.289 0 0
2 Level 3,0/7 – Group 2 man-day 705,5531 187.650 187.696 46 32.455
3 Level 3,5/7 – Group 2 man-day 1.006,1268 205.200 205.250 50 50.306
Total labor cost: NC = B + CLNC = 392.264.547 + 82.762 = 392.347.309 (dong)
d Determine the difference of construction equipment costs
Using the direct compensation method:
CLM = 𝑆𝐿𝑀 𝑥 (Đ𝐺𝑀 − Đ𝐺𝑀 )
Table 2.2.5: Unit price of fuel (Unit: Vietnam dong)
No Fuel Unit Price
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Table 2.2.6: Unit price of construction equipment
Type of machine and
equipment Number of shifts
per year
Historical cost
Recovery coefficient upon liquidation
Fuel and energy consumption norms of 1 shift
Secondary fuel factor
Fuel costs
Compesition rank of machine operate
Machine operator salary
Machine shift price Deprec-
iation Repair Other cost Deprec-iation Repair Other cost
Concrete pump –
Capacity: 40 – 60 m3/h 220 1.245.106.000 0,9 0,13 0,065 0,050 662.170 367.872 282.979 182 kWh 1,05 322.003,5 1x3/7 + 1x5/7 – Group 4 503.443 2.172.758 Bending machine for rebar –
Capacity: 5,0 kW 240 18.200.000 1,0 0,14 0,041 0,040 10.617 3.109,2 3.033 9 kWh 1,05 15.923,3 1 x 3/7 – Group 4 210.146 244.524 Single bucket, crawler
excavator –
Bucket capacity: 1,25 m3 280 1.863.636.000 0,9 0,17 0,058 0,050 1.018.344 386.038,89 332.792 22.591
Liter Diezel 1,03 1.931.304,6 1 x 4/7 – Group 4 249.454 3.300.867
Needle vibrator for concrete
Handheld soil compactor –
Weight: 70kg 200 35.771.000 0,9 0,20 0,054 0,040 32.194 9.658,17 7.154 22.791
Liter A92 gasoline 1,02 92.987,3
1 x 3/7 – Group 4 210.146 337.488
AC welding machine –
Capacity: 23kW 200 16.000.000 1,0 0,21 0,048 0,050 16.800 3.840,00 4.000 1.685 kWh 1,05 84.924,0 1 x 4/7 – Group 4 249.454 368.062 Concrete mixer –
Capacity: 250,0 liters 165 30.210.000 0,9 0,19 0,065 0,050 31.309 11.900,91 9.155 1.685 kWh 1,05 19.461,8 1 x 3/7 – Group 4 210.146 284.045 Bulldozer –
Capacity: 110 CV 280 851.855.000 0,9 0,14 0,058 0,050 383.335 176.455,68 152.117 22.591 Diezel Liter 1,03 1.070.361,6 1 x 4/7 – Group 4 249.454 1.689.735 Dump truck –
Capacity: 5,0 T 260 437.559.000 0,9 0,17 0,075 0,060 257.487 126.218,94 100.975 41 Diezel Liter 1,03 954.017,9 truck operator 1 x 2/4 234.000 1.367.883
Trang 17Table 2.2.7: Price difference of construction equipment
Total construction machine cost: M = C + CLNC = 225.364.840 + 17.465.662 = 242.830.502 (dong)