Engineering advance payment is also called material preparation or material advance payment. The advance payment is used for the contractor to purchase materials and engineering equipment for the contract project construction, purchase or lease construction equipment, build temporary facilities and organize the construction team to enter the site. The following is the project advance payment and its calculation method I compiled. Welcome to read and browse.

1, the limit of prepaid materials.

The limit of prepaid materials is determined by the following main factors: the proportion of main materials (including purchased parts) in the project cost; Storage period of materials; Construction cycle.

For construction enterprises that should be prepared all the year round, the material preparation limit can be calculated according to the following formula;

Material preparation limit = total value of annual contract project * proportion of main materials/annual construction calendar days * days of material reserve.

General construction projects do not exceed 30% of the current construction workload (including water, electricity and heating), and the annual installation workload of installation projects is10%; The installation project with a large proportion of materials is allocated according to the annual planned output value of about 15%.

2. Deduct the reserve funds

The materials allocated by the contractor to the contractor belong to the nature of advance payment. After the implementation of the project, with the gradual reduction of the main material reserves needed for the project, it should be deducted in the form of offsetting the project price. Deduction method:

(1) can be deducted from the value of the main materials and components still needed in the construction project when they are equivalent to the amount of reserve funds, and the project price can be deducted from each project price settlement according to the proportion of materials, and all of them will be deducted before completion. Its basic expression is:

T=P？ Male/female

T-deduction point, that is, deducting the accumulated workload when prepaying materials;

M-the limit of prepaid materials;

N-the proportion of main materials;

P-total contract price.

(2) Deduction method can also be that after the amount completed by the contractor reaches a certain proportion of the total contract price, the contractor starts to repay the employer, and the employer deducts the project advance payment from the amount payable to the contractor every time, and the employer deducts the total amount of the project advance payment one by one at least before the completion date stipulated in the contract.

Payment of progress payment (intermediate settlement)

In the process of construction, construction enterprises calculate various expenses according to the number of projects completed month by month (or image progress, or control interface, etc.). ), and pay the progress payment to the construction unit (owner) (that is, intermediate settlement).

When paying the project progress payment, the following requirements shall be observed:

Confirmation of engineering quantity

According to relevant regulations, the quantities are confirmed as follows:

(1) The contractor shall submit the report of completed quantities to the engineer at the appointed time.

(2) If the engineer fails to measure within 7 days after receiving the contractor's report, the quantities listed in the contractor's report shall be deemed as the basis for paying the project price from the eighth day.

(3) The engineer will not measure the quantities that the contractor exceeds the scope of design drawings and/or reworks due to his own reasons.

Composition of contract income

(1) The initial income stipulated in the contract, that is, the total contract amount preliminarily agreed by the construction contractor and the customer in the contract signed by both parties, constitutes the basic content of contract income.

(2) Income arising from contract changes, claims and awards. This part of the income does not constitute the total contract amount agreed by both parties when signing the contract, but the extra income formed during the execution of the contract due to contract changes, claims, rewards and other reasons.

Payment of project progress payment

The State Administration for Industry and Commerce and the Ministry of Construction promulgated the Construction Contract (Model Text), which made the following detailed provisions on the payment of the project progress payment:

(1) Project payment (progress payment) Within 14 days after both parties confirm the measurement results, the employer shall pay the project payment (progress payment) to the contractor. The advance payment that shall be deducted by the Employer at the agreed time shall be settled at the same time as the project payment (progress payment).

(2) If the contract price is adjusted within the prescribed scope, the contract price for engineering change adjustment and the additional contract price agreed in other terms shall be adjusted and paid at the same time with the project payment (progress payment).

(3) If the Employer fails to pay the project payment (progress payment) within the time limit, the Contractor may issue a payment notice to the Employer. If the Employer still fails to pay as required after receiving the notice from the Contractor, it can negotiate with the Contractor to sign a deferred payment agreement, and the payment can be postponed after the consent of the Contractor. This agreement shall specify the time for deferred payment, and calculate the loan interest payable from the15th day after the measurement result of the Employer is confirmed.

(4) If the Employer fails to pay the project payment (progress payment) as agreed in the contract, and both parties fail to reach an agreement on deferred payment, the Contractor may stop the construction and the Employer shall be liable for breach of contract.

3, the main method of engineering price adjustment

Engineering cost index adjustment method

In this method, Party A and Party B use the fixed unit price of the budget (or budget estimate) at that time to calculate the contract price. After the completion of the project, according to the reasonable construction period and the monthly (or quarterly) project cost published by the local project cost management department, the price difference caused by the actual labor cost, material cost, construction machinery cost and other engineering change factors will be mainly adjusted, and the contractor will be compensated for the price adjustment.

Actual price adjustment method

In China, due to the increasing scope of building materials to be purchased in the market, some areas stipulate that the prices of steel, wood and cement should be settled according to the actual prices. The engineering contractor can be compensated according to the invoice. This method is convenient and correct. However, the contractor is not interested in reducing costs because it is responsible. In order to avoid side effects, the local authorities should issue the maximum price regularly, and the contract documents should stipulate that the construction unit or engineer has the right to ask the contractor to choose a cheaper source of supply.

Calculation method of price adjustment sheet

In this way, Party A and Party B contract according to the budget price at that time. During the contract period, according to the provisions of the price adjustment document of the cost management department, they extract materials to make up the price difference and multiply the price difference by the quantity of materials completed in the same price period. In some places, the supply price and management price of main materials are published regularly to make up for the difference during this period.

Adjustment formula method

The price adjustment formula of construction and installation engineering cost generally includes quota part, material part and labor part. However, when the scale and complexity of construction and installation projects increase, the formula becomes more complicated. The adjustment formula is generally:

p = Po(Ao+A 1 * A/Ao+a2 * B/Bo+a3 * C/Co+a4 * D/Do+？ )

Where p refers to the adjusted contract price or the actual settlement project price;

Po-the contract price in the progress payment of the project budget;

Ao-fixed element, which represents the non-adjustable proportion of contract payment in the total contract price;

a 1、a2、a3、a4？ -Represents the proportion of related expenses (such as labor costs, steel costs, cement costs, transportation costs, etc.). ) in the total contract price, ao+a 1+a2+a3+a4? = 1;

The citation dates of Ao, Bo, Co and Do are different from those of a 1, a2, a3 and a4. The benchmark price index or price of the corresponding expenses;

A, b, c, d and a 1, a2, a3, a4? The current price index or price of the corresponding fee.

4. When using this formula to adjust the price difference of the project, the following points should be noted:

The usual value range of (1) fixed element is about 0. 15-0.35.

(2) According to the general international practice, only some typical labor costs and material costs with large consumption and high prices are selected, and the price index changes comprehensively represent the price changes of material costs, which are as close as possible to the actual situation.

(3) The proportional coefficient of each part of the cost is required to be put forward by the contractor in many bidding documents and demonstrated in the price analysis.

(4) The adjustment of related expenses shall comply with the provisions of the contract.

(5) Pay attention to the place and time when adjusting related expenses.

(6) The sum of the coefficient of each variety plus the fixed coefficient should be equal to 1.

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