Project Cost Reform Of The Pricing Model And A List Of Bid Decision

According to Announcement 119 of Ministry of Construction, "architecture engineering criterion of BOQ Pricing Mode" was issued and brought into execution as national standard since July 1st, 2003. Execution of BOQ Pricing Mode was Only the change of engineering cost estimation mode on the surface, But as an important act of the Reform of engineering cost administrative mechanism, BOQ Pricing Mode indicated that our country firstly introduced market competition mechanism into construction engineering management and wholesale market, for its basic characters of quantity and price separation, forming rate from market, and successful bidder by low prices in economic appraisal. Because BOQ Pricing Mode permitted construction corporations to quote prices independently on the basis of construction organizing design and enterprise quota, price competition would become even severer, and consequently the price would be more transparent, and the profit space of construction corporations would be decreased. For many construction corporations which profits were very small, especially for some middle and small-sized corporations, it is may be an austere test.This paper, combining with the present situation of the project cost management, points out the problems existed in it. The explanation will be in line with international standards, must carry on the reform to the mode of valuating, the list of amount of real project implemented valuates. The article also gives an analysis and exploration to the Countermeasures that construction corporations should take in their management under on BOQ Pricing Mode condition. Through case analysis, provide concrete and feasible suggestion and method.