The Research On Bidding And Quotation Of International Project Construction

Thirty odd years elapsed since Chinese construction and contracting enterprises entered the international construction market in 1978. With a longitudinal comparison, China’s international project contracting business underwent a rapid development and had a dazzling achievements, especially after China became a member of WTO the business stepped into a more rapid development; but, compared laterally with that of developed countries and with a relatively late debut, there a wide gap in the business. The bidding quotation is the pace maker of international project contracting business, its success or failure effects the profit and loss of the project and even the survive and development of contracting enterprises. Accordingly, we shall conduct a serious analysis of the theory of bidding quotation for international projects in order to direct the rapid development of China’s international project contracting business.Bidding quotation for international projects has its own feature and it operates under the international practices. Domestic enterprises could not copy the practices in China. During the bidding quotation for international projects, the bidder shall face four issues, i.e. preparations, calculations, application of the quotation tactics/skills and price break-down and decision making. Based on a great deal of consultation and real evidence analysis of international/domestic theories on overseas bidding and quotation, theories of quotation tactics/skills and decision making and with a method of linking theory with practice, this paper conducts a detailed analysis and exploration on the four issues and finally puts forward a rational solution, establishing a scientific model.Chapter 2 of this paper systematically illustrates the bidding theory, and discusses the classification and the method of the bidding for international projects. Stating with seven aspects, i.e. manpower, project insurance, constructional equipments/imported materials, payment, tax, arbitration and applicability of laws, the chapter treatises in detail the particularity of bidding quotation for international projects. Based on the bidding procedures, the chapter also treatises the working contents and procedure of three stages in International Bidding– bidding, price offer and bid evaluation/contract award. The chapter also summarizes the contents of bidding documents and precautions during the preparations of the bids. Chapter 3 of this paper treatises the procedures of international bidding and also analyses/studies the bidding documents for international projects, site investigation, meeting before bidding and other preparations.Chapter 4 of this paper systematically treatises the method of quotation prices. With the break-down of the costs, it raises a complete method of international project estimation and the theory of competitive bidding is introduced into the bidding quotation of international projects, establishing a model of scientific determination of profits.Chapter 5 of this paper analyses and treatises in detail the application of the bidding quotation tactics in the practice of bidding quotation of international projects. The success of the bidding quotation largely depends on the high and low of the bidding prices; bur, if the contractor applies the rational bidding tactics, he can raises probability of winning or achieve more profits or an earlier receive of progress payments. The chapter studies respectively the clarification of the bidding documents, the application of the formula of price adjustments, the prices for day-work, the tactics of unbalanced bidding and adoption of the prices given by the sub-contractors.Chapter 6 of this paper analyses the results of the price calculation, establishing the comparative analysis, dynamic analysis and profit analysis of the preliminary price calculation. The economic rationality is analyzed by comparative analysis. The dynamic analysis and profit analysis of the prices provides the basis for the quotation decision making. The paper also studies the quotation decision making, raising some considerations in quotation decision making. Finally, taking a real international project as example, the paper intuitively illustrates these solutions and the specific application of the scientific model in bidding quotation for international projects.