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Notice on Printing and Distributing the Composition of Construction Installation Project Costs

Notice on Printing and Distributing the Composition of Construction Installation Project Costs

(Summary description)Constructiondepartments,financedepartments,municipalconstructioncommittees,financebureaus,andrelevantdepartmentsoftheStateCouncilofallprovincesandautonomousregions:   Inordertomeettheneedsofengineeringpricingreformwork,inaccordancewithrelevantnationallawsandregulations,andwithreferencetointernationalpractices,theMinistryofConstructionandthePeople'sConstructionBankofChinaarestipulatedinthe"RegulationsonAdjustingtheCompositionofConstructionInstallationProjectCosts"(Jianbiao[1993]894Onthebasisoftheimplementation,wehaveformulatedthe“ConstructionandInstallationEngineeringCostProjectComponents”(hereinafterreferredtoasthe“CostProjectComposition”),whichisnowissuedtoyou. Inordertofacilitatetheimplementationofthe"costprojectcomponents"afterthereleaseofthe"costprojectcomponents"invariousregionsanddepartments,themainadjustmentcontentsofthe"costprojectcomponents"andtheimplementationofrelevantmattersareherebynotifiedasfollows:   First,themaincontentofthe"costprojectcomposition"adjustment:   (1)Constructionandinstallationengineeringfeesconsistofdirectfees,indirectfees,profitsandtaxes.   (2)Inordertomeettheneedsofcompetitionpricingforbiddingandbiddingforconstructionandinstallationprojects,theoriginalotherdirectcostsandtemporaryfacilitiesfeesaswellasthenon-physicalconsumptionexpensesoftheoriginaldirectcostsarecombinedintothemeasures. Themeasurefeecanbesupplementedaccordingtotheprofessionalandregionalconditions.   (3)Theinspectionandtestingfeesincurredforthegeneralappraisalandinspectionofbuildingmaterials,componentsandbuildinginstallationsunderotherdirectexpensesshallbeincludedinthematerialfee.   (4)Combinetheoriginalon-sitemanagementfee,enterprisemanagementfee,financialfeeandotherexpensesintoanindirectfee. Accordingtotherelevantrequirementsofthestatetoestablishasocialsecuritysystem,socialsecurityrelatedexpensesarelistedinthefees.   (5)Theoriginalplannedprofitwaschangedtoprofit.   Second,inordertoguidealldepartmentsandregionstocarryoutthecalculationofthecoststandardaccordingtothe"costprojectcomposition",wehaveunifiedthe"ReferenceCalculationMethodforConstructionandInstallationProjectCosts"and"BuildingInstallationEngineeringValuationProcedure"(seeAnnexI,AnnexIIfordetails).).   Third,the"costprojectcomposition"willbeimplementedasofJanuary1,2004. TheformerMinistryofConstructionandthePeople'sConstructionBankofChina,"SeveralProvisionsonAdjustingtheCompositionofConstructionInstallationProjectCosts"(Jianbiao[1993]No.894)shallbeabolishedatthesametime.   Relevantquestionsandopinionsontheimplementationofthe"costprojectcomponents"shouldbepromptlyreportedtotheStandardsandStandardsDepartmentoftheMinistryofConstructionandtheEconomicConstructionDepartmentoftheMinistryofFinance.   Annex1:Referencecalculationmethodforconstructioninstallationprojectcost   Annex2:Pricingproceduresforbuildinginstallationprojects   MinistryofConstruction   MinistryofFinance   October15,2003

Notice on Printing and Distributing the Composition of Construction Installation Project Costs

(Summary description)Constructiondepartments,financedepartments,municipalconstructioncommittees,financebureaus,andrelevantdepartmentsoftheStateCouncilofallprovincesandautonomousregions:   Inordertomeettheneedsofengineeringpricingreformwork,inaccordancewithrelevantnationallawsandregulations,andwithreferencetointernationalpractices,theMinistryofConstructionandthePeople'sConstructionBankofChinaarestipulatedinthe"RegulationsonAdjustingtheCompositionofConstructionInstallationProjectCosts"(Jianbiao[1993]894Onthebasisoftheimplementation,wehaveformulatedthe“ConstructionandInstallationEngineeringCostProjectComponents”(hereinafterreferredtoasthe“CostProjectComposition”),whichisnowissuedtoyou. Inordertofacilitatetheimplementationofthe"costprojectcomponents"afterthereleaseofthe"costprojectcomponents"invariousregionsanddepartments,themainadjustmentcontentsofthe"costprojectcomponents"andtheimplementationofrelevantmattersareherebynotifiedasfollows:   First,themaincontentofthe"costprojectcomposition"adjustment:   (1)Constructionandinstallationengineeringfeesconsistofdirectfees,indirectfees,profitsandtaxes.   (2)Inordertomeettheneedsofcompetitionpricingforbiddingandbiddingforconstructionandinstallationprojects,theoriginalotherdirectcostsandtemporaryfacilitiesfeesaswellasthenon-physicalconsumptionexpensesoftheoriginaldirectcostsarecombinedintothemeasures. Themeasurefeecanbesupplementedaccordingtotheprofessionalandregionalconditions.   (3)Theinspectionandtestingfeesincurredforthegeneralappraisalandinspectionofbuildingmaterials,componentsandbuildinginstallationsunderotherdirectexpensesshallbeincludedinthematerialfee.   (4)Combinetheoriginalon-sitemanagementfee,enterprisemanagementfee,financialfeeandotherexpensesintoanindirectfee. Accordingtotherelevantrequirementsofthestatetoestablishasocialsecuritysystem,socialsecurityrelatedexpensesarelistedinthefees.   (5)Theoriginalplannedprofitwaschangedtoprofit.   Second,inordertoguidealldepartmentsandregionstocarryoutthecalculationofthecoststandardaccordingtothe"costprojectcomposition",wehaveunifiedthe"ReferenceCalculationMethodforConstructionandInstallationProjectCosts"and"BuildingInstallationEngineeringValuationProcedure"(seeAnnexI,AnnexIIfordetails).).   Third,the"costprojectcomposition"willbeimplementedasofJanuary1,2004. TheformerMinistryofConstructionandthePeople'sConstructionBankofChina,"SeveralProvisionsonAdjustingtheCompositionofConstructionInstallationProjectCosts"(Jianbiao[1993]No.894)shallbeabolishedatthesametime.   Relevantquestionsandopinionsontheimplementationofthe"costprojectcomponents"shouldbepromptlyreportedtotheStandardsandStandardsDepartmentoftheMinistryofConstructionandtheEconomicConstructionDepartmentoftheMinistryofFinance.   Annex1:Referencecalculationmethodforconstructioninstallationprojectcost   Annex2:Pricingproceduresforbuildinginstallationprojects   MinistryofConstruction   MinistryofFinance   October15,2003

Information

Construction departments, finance departments, municipal construction committees, finance bureaus, and relevant departments of the State Council of all provinces and autonomous regions:

 

  In order to meet the needs of engineering pricing reform work, in accordance with relevant national laws and regulations, and with reference to international practices, the Ministry of Construction and the People's Construction Bank of China are stipulated in the "Regulations on Adjusting the Composition of Construction Installation Project Costs" (Jianbiao [1993] 894 On the basis of the implementation, we have formulated the “Construction and Installation Engineering Cost Project Components” (hereinafter referred to as the “Cost Project Composition”), which is now issued to you. In order to facilitate the implementation of the "cost project components" after the release of the "cost project components" in various regions and departments, the main adjustment contents of the "cost project components" and the implementation of relevant matters are hereby notified as follows:

 

  First, the main content of the "cost project composition" adjustment:

 

  (1) Construction and installation engineering fees consist of direct fees, indirect fees, profits and taxes.

 

  (2) In order to meet the needs of competition pricing for bidding and bidding for construction and installation projects, the original other direct costs and temporary facilities fees as well as the non-physical consumption expenses of the original direct costs are combined into the measures. The measure fee can be supplemented according to the professional and regional conditions.

 

  (3) The inspection and testing fees incurred for the general appraisal and inspection of building materials, components and building installations under other direct expenses shall be included in the material fee.

 

  (4) Combine the original on-site management fee, enterprise management fee, financial fee and other expenses into an indirect fee. According to the relevant requirements of the state to establish a social security system, social security related expenses are listed in the fees.

 

  (5) The original planned profit was changed to profit.

 

  Second, in order to guide all departments and regions to carry out the calculation of the cost standard according to the "cost project composition", we have unified the "Reference Calculation Method for Construction and Installation Project Costs" and "Building Installation Engineering Valuation Procedure" (see Annex I, Annex II for details). ).

 

  Third, the "cost project composition" will be implemented as of January 1, 2004. The former Ministry of Construction and the People's Construction Bank of China, "Several Provisions on Adjusting the Composition of Construction Installation Project Costs" (Jianbiao [1993] No. 894) shall be abolished at the same time.

 

  Relevant questions and opinions on the implementation of the "cost project components" should be promptly reported to the Standards and Standards Department of the Ministry of Construction and the Economic Construction Department of the Ministry of Finance.

 

  Annex 1: Reference calculation method for construction installation project cost

 

  Annex 2: Pricing procedures for building installation projects

 

  Ministry of Construction

 

  Ministry of Finance

 

  October 15, 2003

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