A Study Of Contractor's Estimate Based On The Approved Code Of The Lowest Estimate

The present estimate is made by a contractor, according to a certain budget, standard of charging as well as a published price by the government agency responsible for the estimates of constructional engineering.The bidding estimate,made according to the working_out code of the rough budget for constructions, is made up of direct fees, indirect fees, expected profits, taxes and unexpected spendings.The way of estimating, which is targeted at winning the bid, neither contribute to the real price competition, meet the requirements of the approveed code of the lowest estimate assessed, nor give rise to the risks in the estimates of contractors.The estimating tendency of contractors should shift from the orientation of winning the bid on their part to the orientation of asswssing the estimates on the part of assessing professionals in order to meet the requirements as well as reducing the possible risks. The estimate cost of contractors is made up of non-competitive cost, limitedly competitive cost and fully competitive cost. The non-competitive cost can not be changed at all.In terms of non-competitive cost, the limitedness of competition enables contractors to make some adjustments, but not reducing to zero.Otherwise, the lowest estimate will be rejected as ineligible according to the code.As to the fully competitive cost, the bidding contractors can make a real and reasonable estimate, especially reducing to zero, according to their own real conditions and need for competition.According to the rigidity of cost taking part in competition, the model of contractors bidding and estimating is constructed. Based on the approved code of the loqest estimate assessed, according to the classification standard, the regulations of construction estimating and calculation, documents of construction bid-inviting, marketing information, experiences drawn from the previous similar constructions, the unexpected cost price of the planned constructions is adjusted and made openly in terms of the specific conditions. Contractors can make adjustment in the limitedly competitive cost and the fully competitive cost and fix adjustment coefficient according to their own cost advantages, disadvantage and competitive ability. The fixing of the adjustment coefficient, which can be made by means of SWOT Model of cost analysis and theassessment model of the contractor's competitivity in entering a bidding, enable the contractors to win the bid by making their estimates equipped with certain advantages as well as meeting the certain requirements.