ĐỒ ÁN KTXD và nghiệp vụ đấu thầu HUCE

HANOI UNIVERSITY OF CIVIL ENGINEERING
FALCUTY OF ECONOMICS AND CONSTRUCTION MANAGEMENT
DEPARTMENT OF CONSTRUCTION ECONOMICS

PROJECT
DETERMINE THE BID PRICE OF THE BIDDING PACKAGE
‘‘CONSTRUCTION OF THE STRUCTURAL COMPONENTS’’
Category: Detached House, Duplex House, Shophouse, Townhouse
under Construction Investment Project V Residences
SUPERVISOR: Ph.D NGUYEN TUAN ANH
STUDENT:
STUDENT ID:
CLASS:
CODE:

DANG PHAM VIET ANH
1500665
65KTE
767411

Hanoi – 2023


PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH

INTRODUCTION
I. The role and purpose of construction bidding
1. Role of construction bidding
The bids for construction works could bring advantages from different points of view:
 For the authority:
o Improve the capability of the officers from the state to local authorities.

o Increase the management role of the authority.
o Achieve high-quality construction works.
o Save the Budget State.
 For the owner:
o Choose the most suitable contractor compared to the owner’s requirements.
o Prevent the monopoly of some contractors, increase the competitiveness and the role of
the owner to the contractor.
o The responsibility and obligations of the Owner which is authorized by the State for
implementation of an investment project will be clarified.
 For the contractor:
o Ensure the equality to all the contractors. Due to competitiveness, each contractor needs to
develop, research, apply technology advances, suitable business models to win the bids, as
a contribution to the development of the construction industry in general.
2. Purposes of construction bidding
 Construction bidding is to provide the owners with the optimum price for the project and provide
multiple entities the opportunity to compete for work.
II. The role of bid prices in construction bid
 According to Government’s regulations: “The bid price is the price in bid document after
deducting the discount (if any), including all costs necessary to fulfill the requirements of the bid
document on schedule.
 The bid price is based on the production norm of the enterprises corresponding to the scientific –
technological and the business strategy of contractor. From there, each contractor has a different
bid price. Contractors with reasonable technological measures and low prices will be selected.
 The bid price is the contractor's ability, which is the basis for investors to rank the contractors,
thereby selecting the best contractor.
 The bid price is an important indicator that plays a decisive role in the contractor’s ability to win
the bidding, directly affecting the production and business results of construction enterprises.
III. Project’s tasks
 Determining the bidding package price: “Construction the structural components, exterior
finishes. Category: detached house, duplex house, shophouse, townhouse under construction

investment project “V Residences”.
 Determining the bid price for the package: “Construction the structural components, exterior
finishes. Category: detached house, duplex house, shophouse, townhouse under construction
investment project “V Residences”.
 Comparing the bid package price and the bid price to decide whether to participate in bidding or
not.
 Present the bidding price in full unit price.
 Topic data:
Number of houses
DL

SL

SH

TH

7

6

7

4

Type of contract

Project
component

Location

Lump Sum
Contract

Foundation

Bao Lam, Cao Bang

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PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH

CHAPTER 1
THEORETICAL BASIS OF THE BID PRICES
I. Definition of construction bid price
 The bid price means the price stated by a tenderer in application for bid participation, quotation,
including all costs for implementation of bidding package as required by dossier of bid invitation,
dossier of requirement.
 The bid price is determined based on the selected technical-technological solutions, norms, unit
price, bidding strategies and management of contractors. In case the contractor has a discount
letter, the bid price is the bid package price after the discount.
II. Contents and structure of construction bid price
 Contents and structure of construction bid price depends on the type of contract.
 For Lump sum contract:
 Construction cost

= T + GT + LN

G

+ GTGT

 In which:
o Direct cost:
T = VL + NC + M
 Material cost: VL
 Labor cost: NC
 Equipment cost: M
o Indirect cost:
GT = C + LT + TT
 General cost: C
 Cost for temporary housing and construction management: LT
 Cost for some work cannot be determined form the design: TT
 Profit before tax: LN
 Value added tax: VAT
 Other cost: G
III. Methods of determining the bid price.
1. Input resources demand analysis
 Material demand analysis:

VL =

Q x ĐM

NC =

Q x ĐM

 Labor demand analysis:

 Construction machine demand analysis:

M =

Q x ĐM

2. Determine price of input resources
3. Determine the direct cost
 Material cost:

VL =

VL x ĐG

NC =

NC x ĐG

 Labor cost:

 Construction machine cost:

DANG PHAM VIET ANH – 1500665 – 65KTE

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PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH

M=

M x ĐG

4. Determine the indirect cost
 General cost shall be determined in percentage estimated or detailed estimate of each item.
 Cost for the construction of makeshift houses for accommodation and administration on site.
 The cost of work can not determine the volume of the design.
 The one-time cost of equipment.
 Cost for makeshift works.
5. Estimate the expected profit

TL = i% x (T + GT)
6. Determine the value added tax and construction cost summary

TVAT = t% x (T + GT + TL)
G

= T + GT + TL + TVAT

7. Determine the contingency cost
IV. Construction bid price process.
V. Presentation the construction bid price in bids

CHAPTER 2
DETERMINING THE BID PRICE FOR THE PACKAGE
CONSTRUCTION OF THE STRUCTURAL COMPONENTS’’

Category: Detached House, Duplex House, Shophouse, Townhouse under
Construction Investment Project V Residences
I.
1.




Introduction of bid package and requirements of bids.
Bid package introduction.
Project’s name: Investment in construction of V Residences.
Owner: V Joint Stock Company (V.JSC)
Name of bid package: Construction the structural components. Category: detached house, duplex
house, shophouse, townhouse under construction investment project of V Residences.
 Location: Bao Lam – Cao Bang
 Characteristics of structural solutions: Based on the design drawings and the related
documentation.
 Contractor selection form:
o Open bidding
o Bids evaluation method: method of combination of technical aspect and price

DANG PHAM VIET ANH – 1500665 – 65KTE

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PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH

2. Summary of the requirements of the bids related to the determining bid price.
Table 2.1.1: Bill of quantities

QUANTITY PER HOUSE
No

NAME OF WORK

EARTHWORKS
Excavation and leveling by excavator
1
1,25m3, soil grade II
Soil excavation for strip footing
2
manually, width ≤ 3m, depth ≤ 1m, soil
grade II
Soil embankment by hand compactor
3
70kg, soil compaction factor K=0,90
Soil transportation by 5-ton dump
4
truck in radius <= 1000m, soil grade
II
Soil transportation by 5-ton dump
5
truck for the next 4km in radius ≤5km,
soil grade II
Soil transportation by 5-ton dump
6
truck outside the radius >5km, soil
grade II (next 10km)
FOUNDATION
Mixing concrete by mixers poured

7
manually, leveling concrete, width
≤250 cm, stone 4x6, grade 100
Wooden formwork. Strip footing
8
formwork

UNIT

QUANTITY OF THE PROJECT
DL
SL
SH
TH
7
6
7
4

TOTAL

DL

SL

SH

TH

100m3

1,022

1,123

0,962

0,548

7,154

6,738

6,734

2,192

22,818

100m3

11,352

11,887

10,692

6,085

79,464

71,322

74,844

24,34

249,97

100m3

0,843

1,075

0,892

0,317

5,901

6,45

6,244

1,268

19,863

100m3

0,292

0,167

0,177

0,292

2,044

1,002

1,239

1,168

5,453

100m3

0,292

0,167

0,177

0,292

2,044

1,002

1,239

1,168

5,453

100m3

0,292

0,167

0,177

0,292

2,044

1,002

1,239

1,168

5,453

m3

10,237

11,748

9,445

5,901

71,659

70,488

66,115

23,604

231,866

100m2

0,192

0,22

0,185

0,115

1,344

1,32

1,295

0,46

4,419

DANG PHAM VIET ANH – 1500665 – 65KTE

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PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH

9

10
11
12
13

14

15

16

Ready-mixed concrete, poured by

concrete pump, concrete foundation,
foundation width ≤250 cm, stone
1x2, grade 250
Ready-mixed concrete, poured by
concrete pump, concrete foundation
wall, stone 1x2, grade 250
Wooden formwork. Strip footing
formwork
Wooden formwork. Wall bracing
formwork
Fabrication and installation of
reinforcing steel. Reinforced
foundation, diameter < 10mm (steel
grade CB240T)
Fabrication and installation of
reinforcing steel. Reinforced
foundation, diameter =10mm (steel
grade CB400V)
Fabrication and installation of
reinforcing steel. Reinforced
foundation, diameter ≤18mm (steel
grade CB400V)
Fabrication and installation of
reinforcing steel. Reinforced
foundation, diameter >18mm (steel
grade CB400V)

m3

41,313

39,181

32,946

19,21 289,191 235,086 230,622

76,84

831,739

m3

2,109

2,337

2,45

1,577

14,763

14,022

17,15

6,308

52,243

100m2

0,699

0,736

0,76

0,337

4,893

4,416

5,32

1,348

15,977

100m2

0,205

0,234

0,245

0,158

1,435

1,404

1,715

0,632

5,186

ton

0,39

0,491

0,479

0,259

2,73

2,946

3,353

1,036

10,065

ton

0,612

0,934

0,751

0,455

4,284

5,604

5,257

1,82

16,965

ton

0,271

0,273

0

0

1,897

1,638

0

0

3,535

ton

1,141

1,478

1,728

0,88

7,987

8,868

12,096

3,52

32,471

DANG PHAM VIET ANH – 1500665 – 65KTE

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PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH

 Requirements for quality and specifications of materials
































3.


Concrete mortar used in the construction structures shall be crushed stone commercial
concrete with 1x2cm aggregate, grade 250, with a slump of 14+/-2 cm.
Cement used in construction shall be produced according to the PC-30 rotary kiln
technology as per the current TCVN (Vietnamese standard).
Sand used in plastering and concrete shall be clean, with particle size and impurities
meeting the current TCVN standards.
Steel used in construction shall belong to the AI and AII groups as per the current
TCVN standards (AI for steel ≤ 8mm, AII for steel ≥ 10mm).
The bricks used for construction shall be solid bricks produced by manufacturing plants
with a brick grade of 75 (or as per the bid invitation).
Construction mortar: Cement and yellow sand mortar, grade 50 (or as per the bid invitation).
Plastering mortar: Cement and black sand mortar, grade 75 (or as per the bid invitation).
Wood used for doors and door frames shall belong to group 2 wood (or as per the bidinvitation).
Glass used for window and door assembly shall be 5mm thick colored glass (or as per the bid
invitation).
Floor tiles: Locally manufactured ceramic tiles (or as per the bid invitation).
Wall tiles: Locally manufactured ceramic tiles (or as per the bid invitation).

Requirements of technological solution for the bid package
Construction of soil excavation by backhoe excavator combined with manually repair. Using
dump truck to remove excess soils.
For main structures such as: foundation, column, slab, beam, using ready-mix concrete, poured by
concrete pump. Other structures: stairs, lintel, chajja, using concrete mixed by concrete mixer
poured manually.
For formwork of foundation, beam, column, slab, stairs using steel formwork. Other components
use timber formwork.
Reinforcement work: reinforcing steel will be cut, bent as the design on site, installed manually at
the positon which has been marked.
Finishing works: are technological solution which are being commonly used in civil buildings,
hotels, villas, guest houses with the height corresponding to the number of floors ≤ 5 floors (≤
16m)
Type of contract: Lump sum contract
Requirements for capital advance, advance capital recovery and payment
Pursuant to the Decree No. 37/2015/ND-CP “Detailed regulations on construction contract”
dated April 22, 2015 of Point b, Clause 5, Article 18, the contractor is received in advance for
15% of the contract value with the contract value from 10 – 50 billion.
The contractor will be received in advance for 95% of finished and inspected construction works
according to stages after completing 30% of the contract value.
The contractor will be received in advance for 95% of finished and inspected construction works
at the 2nd phase after completing up to 60% of the contract value. (30% of the contract value).
The contractor will be received in advance for 95% of finished and inspected construction works
at the 3rd phase after completing up to 90% of the contract value. (30% of the contract value) but
deduct 10% of the advance value contract from the commencement of construction work.
The contractor is received the rest at the end of the contract but 5% of the contract value will be
kept by owner during the maintenance phase or can apply the form of bank guarantee.
Introduction of contractor participating in bidding
Name of contractor: V.A Construction Group Joint Stock Company.
o Total employees: 28915 employees

DANG PHAM VIET ANH – 1500665 – 65KTE

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PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH

o Direct employees: 21200 employees
o Total value of fixed assets: 1161 billion VND
No.
1
2
3
4
5
6
7
8
9
10
11
12

Table 2.1.2. List of construction equipment and equipment of the contractor
Equipment
Unit
Quantity
Original Cost
Wheel excavator 0,35m3
piece

4
420 million VND
Tower crane
piece
2
7,3 million VND
Hoist
piece
8
26 million VND
Dump truck 9 tons
piece
13
320 million VND
Dump truck 5 tons
piece
10
190 million VND
Truck 9 tons
piece
10
300 million VND
Welding machine 250-400
piece
8
3,2 million VND
Concrete mixer 250L
piece
6
17,5 million VND

Internal vibrator 3 phase electricity
piece
16
3,5 million VND
External vibrator
piece
12
1,6 million VND
Mortar mixer
piece
14
2,2 million VND
Steel scaffolding
set
10
100 million VND

 Own working capital: 100% of total working capital demand
 Organizational structure of enterprise for each bid package:
 Construction manager: Chief engineer: 01 person
 Deputy construction manager: Engineer with seniority of 10 years: 01 person
 Technical staff: Civil engineer 02 persons
 Economic staff : Engineer, bachelor 02 person
 Other staffs: Vocational 01 person
 Watchman: 03 persons
II. Determine the bid package price
1. Principles to determine the bid package price
 Based on bid quantity and design from the owner.
 Estimating norms and construction unit price of provinces or cities.
 The State’s current regulations on determining the price of construction estimate

 Notice price adjustment of provinces or cities.
 Unit price index issued by Department Construction of Province or Ministry of
Construction.
 Type of contract specified in bids
 Legislations:
o Circular 11/2021/TT-BXD dated Ausgust 31, 2021 on Guiding a number of provisions on
determination and management of construction investment costs issued by The Ministry of
Construction.
o Circular 12/2021/TT-BXD dated Ausgust 31, 2021 on Construction norms issued by The
Ministry of Construction.
o Circular 13/2021/TT-BXD dated Ausgust 31, 2021 on Guiding methods of determination of
techno-economic norms and takeoff of quantities of works issued by The Ministry of
Construction.
o Decree 10/2021/ND-CP dated February 2, 2021 on The Management of construction
investment costs issued by The Gorvernment.
o Decision 1801/QĐ-UBND dated October 04, 2021 about the Announcement of construction
labor price in Cao Bang issued by UBND Cao Bang.
DANG PHAM VIET ANH – 1500665 – 65KTE

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PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH

o Decision 1899/QĐ-UBND dated October 14, 2021 about the Announcement of the
construction machines and equipment price in Cao Bang issued by UBND Cao Bang.
o Decision 44/2021/QĐ-UBND dated December 8, 2021 about the Announcement of
construction materials price in Cao Bang issued by UBND Cao Bang.
2. Determine the bid package price
3. Determine the costs of materials, labors, construction equipments

DANG PHAM VIET ANH – 1500665 – 65KTE

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PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH

Table 2.2.1. Costs of materials, labors, construction equipments
No.

Work
code
HM
*

1

AB.21132

2

AB.11312

3

AB.65120

4

AB.41412

5

AB.42112

6

AB.42212
T*
*

7

AF.11111

8

AF.81111

Working list
FOUNDATION
EARTHWORKS
Excavation and leveling by excavator 1,25 m3,
soil grade II
22,818 = 22,818
Soil excavation for strip footing manually, width
≤ 3m, depth ≤ 1m, soil grade II
249,97 = 249,97
Soil embankment by hand compactor 70kg, soil

compaction factor K=0,90
19,863 = 19,863
Soil transportation by 5-ton dump truck in radius
<= 1000m, soil grade II
5,453 = 5,453
Soil transportation by 5-ton dump truck for the
next 4km in radius ≤5km, soil grade II
5,453
Soil transportation by 5-ton dump truck outside
the radius >5km, soil grade II (next 10km)
5,453
Total: EARTHWORKS
FOUNDATION
Mixing concrete by mixers poured manually,
leveling concrete, width ≤250 cm, stone 4x6,
grade 100
231,866 = 231,866
Wooden formwork. Strip footing formwork
4,419 = 4,419

Unit

Quantity

Unit price (đ)
Material

Labor

Total (đ)

Machine

Material

Labor

Machine

0

1.830.392

17.537.709

0

32.240.381

0

1.297.641

0

19.338.994

25.775.043

100m3

22,8180

80.217

768.591

m3

249,970

128.977

100m3

19,8630

973.619

100m3

5,4530

1.817.917

0

0

9.913.101

100m3

5,4530

3.282.920

0

0

17.901.763

100m3

5,4530

6.976.200

0

0

38.041.219

0
m3

100m2

231,8660

513.043

200.786

4,4190

3.650.140

2.792.772

DANG PHAM VIET ANH – 1500665 – 65KTE

47.998

10

53.409.766

109.168.835

118.957.228

46.555.447

11.129.104

16.129.969

12.341.259

0


PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH

9

AF.31114

10

AF.32314

11

AF.81111

12

AF.81141

13

AF.61110

14

AF.61110

15

AF.61120

16

AF.61130

Ready-mixed concrete, poured by concrete
pump, concrete foundation, foundation width
≤250 cm, stone 1x2, grade 250
831,739 = 831,739
Ready-mixed concrete, poured by concrete
pump, concrete foundation wall, stone 1x2,
grade 250
52,243 = 52,243
Wooden formwork. Strip footing formwork
15,977 = 15,977
Wooden formwork. Wall bracing formwork
5,186 = 5,186
Fabrication and installation of reinforcing steel.
Reinforced foundation, diameter < 10mm (steel
grade CB240T)
10,065 = 10,065
Fabrication and installation of reinforcing steel.
Reinforced foundation, diameter =10mm (steel
grade CB400V)
16,965 = 16,965
Fabrication and installation of reinforcing steel.
Reinforced foundation, diameter ≤18mm (steel

grade CB400V)
3,535 = 3,535
Fabrication and installation of reinforcing steel.
Reinforced foundation, diameter >18mm (steel
grade CB400V)
32,471 = 32,471

m3

831,7390

752.513

103.208

93.993

625.894.410

85.842.119

78.177.644

m3

52,2430

752.513

340.632

116.054

39.313.537

17.795.638

6.063.009

100m2

15,9770

3.650.140

2.792.772

58.318.287

44.620.118

0

100m2

5,1860

5.216.024

5.643.000

27.050.300

29.264.598

0

ton

10,0650

18.223.453

2.205.900

97.810

183.419.054

22.202.384

984.458

ton

16,9650

18.223.453

2.205.900

97.810

309.160.880

37.423.094

1.659.347

ton

3,5350

18.292.820

1.573.884

490.477

64.665.119

5.563.680

1.733.836

ton

32,4710

18.225.623

1.147.068

506.563

591.804.204

37.246.445

16.448.607

T*

Total: FOUNDATION

2.034.712.989

338.854.781

116.196.005

THM

TOTAL

2.034.712.989

392.264.547

225.364.840

DANG PHAM VIET ANH – 1500665 – 65KTE

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PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH

4. Resources analysis and determine the differences of materials, labors, construction
equipment costs
a. Determine the requirement of materials, labors and construction equipment
 According to the detailed of volume of construction works and Construction estimating norms
Circular 12/TT-BXD issued by Ministry of Construction, the volume of main materials and
reclaimed materials consumed, labor consumed and construction equipment demand are
determined following these formulas:
𝑉𝐿 =

𝑄

x Đ𝑀

𝑁𝐶 =

𝑄

x Đ𝑀

𝑀 =

𝑄

x Đ𝑀

 In which:
o 𝑉𝐿 : number of main materials and reclaimed materials type j to complete the entire
volume of construction work of the bid package.
o 𝑁𝐶 : labor consuming of worker level j (man-day) to complete the entire volume of
construction works of the bid package.
o 𝑀 : Equipment consuming of construction consuming type j to complete the entire volume
of construction works of the bid package.
o 𝑄 : The volume of construction work i.
o Đ𝑀 : Estimating norms for main materials and reclaimed materials, labor and
construction equipment type j to complete one unit of construction work i.
o 𝑛: Quantity of type of construction works of the bid package, according to the bidding
documents.
Table 2.2.2: Summary of materials, labor and machine consumption in direct cost.
No.

Name Supplies

I

MATERIALS

Unit

Quantity

1

Golden sand

m3

132,853

2

Steel wire

kg

722,074

3

4x6 stone

m3

215,322

4

Nail

kg

318,86

5

Stand plywood

m3

14,325

6

Plywood

m3

2,755

7

Wooden planks

m3

20,312

8

Water

liter

38.501,35

9

Welding rod

kg

188,499

10

CB240T Steel D<10mm

kg

10.115,325

11

CB400V Steel D<=18mm

kg

3.605,70

12

CB400V Steel D=10mm

kg

17.049,83

DANG PHAM VIET ANH – 1500665 – 65KTE

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PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH

13

CB400V Steel D>18mm

kg

33.120,42

14

PC30 cement mortar, coarse sand, 1x2
M250 stone - Slump 14 - 17cm

m3

897,242

15

PCB30 cement

kg

45.868,89

16

Other materials

%

II

LABORS

1

Level 3,0/7 employees – Group 1

Workday

339,5646

2

Level 3,0/7 employees – Group 2

Workday

705,5531

3

Level 3,5/7 employees – Group 2

Workday

1.006,1268

III

7

MACHINE
Concrete pump – Capacity: 40 - 60
m3/h
Bending machine for rebar – Capacity:
5,0 kW
Single bucket, crawler excavator –
Bucket capacity: 1,25 m3
Needle vibrator for concrete - Capacity:
1,5 kW
Vibratory plate compactor for concrete Capacity: 1,0 kW
Handheld soil compactor – Weight:
70kg
AC welding machine – Capacity: 23kW

8

1

Shift

29,1714

Shift

17,1386

Shift

4,9743

Shift

83,4285

Shift

20,6361

Shift

76,3732

Shift

45,1974

Concrete mixer – Capacity: 250,0 liters

Shift

22,0273

9

Bulldozer – Capacity: 110 CV

Shift

0,6617

10

Dump truck – Capacity: 5,0 T

Shift

48,1445

11

Other machines

2
3
4
5

6

%

b. Determine the difference of main materials and reclaimed materials

CL =

VL x (ĐG

− ĐG )

 In which:
o CL: total difference of material
o VL : quantity of material
o ĐG : cost of materials at the time of construction
o ĐG : cost of material in circular

DANG PHAM VIET ANH – 1500665 – 65KTE

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PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH

Table 2.2.3: Differences in total amount of materials
1

Coarse sand

m3

132,8534

270.000

Current price
(đ)
300.000

30.000

Total
difference (đ)
3.985.603

2

Steel wire

kg

722,0743

21.250

21.250

0

0

3

4x6 stone

m3

215,3224

140.000

190000

50.000

10.766.118

4

Nail

kg

318,8599

22.000

22000

0

0

5

Stand plywood

m3

14,3248

2.500.000

2.500.000

0

0

6

Plywood

m3

2,7546

2.500.000

2.500.000

0

0

7

Wooden planks

m3

20,3121

2.500.000

2.500.000

0

0

8

Water

liter

38.501,3493

5

5

0

0

9

Welding rod

kg

188,4987

21.500

21.500

0

0

10

CB240T Steel D<10mm

kg

10.115,3250

17.793

16.500

-1.293

-13.079.115

11
12
13

CB400V Steel D<=18mm
CB400V Steel D=10mm
CB400V Steel D>18mm
PC30 cement mortar, coarse sand, 1x2
M250 stone - Slump 14 - 17cm

kg
kg
kg

3.605,70
17.049,8250
33.120,420

17.643
17.793

17.593

16.500
16.500
16.500

-1.143
-1.293
-1.093

-4.121.315
-22.045.424
-36.200.619

m3

897,2417

734.052

734.052

0

0

45.868,8915

1.150

1.500

350

16.054.112

No.

14

Material

Unit

15

PCB30 cement

kg

16

Other materials

%

Quantity

Norm price (đ)

Difference (đ)

-182.318

TOTAL

-44.822.958

 Total material cost: A = VL + CLVL = 2.034.712.989 – 44.822.958 = 1.989.890.030 (dong)

DANG PHAM VIET ANH – 1500665 – 65KTE

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PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH

c. Determine the difference of labor consuming.
 Using the direct compensation method
CLNC =

𝑆𝐿𝑁𝐶 𝑥 (Đ𝐺

− Đ𝐺 )

 In which:
o CLNC: total difference of labor
o SLNC
: Number of working days of worker level j according to each sector.
o j: Average level of worker of a sector.

o ĐG : cost of labor in circular
o ĐG : cost of labor in reality
Table 2.2.4: Summary of employees and price difference of labor
No.

Level of work

II

LABOR

Unit

Quantity

Norm
price (đ)

Current
price (đ)

Difference

Total
difference

1

Level 3,0/7 – Group 1

man-day

339,5646

157.289

157.289

0

0

2

Level 3,0/7 – Group 2

man-day

705,5531

187.650

187.696

46

32.455

3

Level 3,5/7 – Group 2

man-day

1.006,1268

205.200

205.250

50

50.306

TOTAL

82.762

 Total labor cost: NC = B + CLNC = 392.264.547 + 82.762 = 392.347.309 (dong)
d. Determine the difference of construction equipment costs
 Using the direct compensation method:
CLM =

𝑆𝐿𝑀 𝑥 (Đ𝐺𝑀

− Đ𝐺𝑀 )

Table 2.2.5: Unit price of fuel (Unit: Vietnam dong)
No.
Fuel

Unit
Price
1
Diezel
Liter
22.591
2
Mazut
Liter
0
3
Electricity
kWh
1.685
4
A92 Gasoline
Liter
22.791

DANG PHAM VIET ANH – 1500665 – 65KTE

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PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH

Table 2.2.6: Unit price of construction equipment
Quota
Type of machine and
equipment

Number
of shifts
per year

Historical
cost

Recovery
coefficient
Deprecupon
liquidation iation

Cost

Repair

Other
cost

Depreciation

Repair

Other
cost

Fuel and energy
Secondary
consumption

fuel
norms of 1 shift
factor

Fuel costs

Compesition
rank of
machine
operate

Machine
operator
salary

Machine
shift price

Concrete pump –
Capacity: 40 – 60 m3/h

220

1.245.106.000

0,9

0,13

0,065

0,050

662.170

367.872

282.979

182

kWh

1,05

322.003,5

1x3/7 + 1x5/7
– Group 4

503.443

2.172.758

Bending machine for rebar –
Capacity: 5,0 kW

240

18.200.000

1,0

0,14

0,041

0,040

10.617

3.109,2

3.033

9

kWh

1,05

15.923,3

1 x 3/7 –
Group 4

210.146

244.524

Single bucket, crawler
excavator –
Bucket capacity: 1,25 m3

280

1.863.636.000

0,9

0,17

0,058

0,050

1.018.344

386.038,89

332.792

22.591

Liter
Diezel

1,03

1.931.304,6

1 x 4/7 –
Group 4

249.454

3.300.867

Needle vibrator for concrete
– Capacity: 1,5 kW

150

7.395.000

1,0

0,20

0,088

0,040

9.860

4.338,40

1.972

7

kWh

1,05

12.384,8

1 x 3/7 –
Group 4

210.146

240.020

Vibratory plate compactor
for concrete –
Capacity: 1,0 kW

150

6.420.000

1,0

0,25

0,088

0,040

10.700

3.766,40

1.712

1.686

kWh

1,05

8.846,3

1 x 3/7 –
Group 4

210.146

236.112

Handheld soil compactor –
Weight: 70kg

200

35.771.000

0,9

0,20

0,054

0,040

32.194

9.658,17

7.154

22.791

Liter
A92
gasoline

1,02

92.987,3

1 x 3/7 –
Group 4

210.146

337.488

AC welding machine –

Capacity: 23kW

200

16.000.000

1,0

0,21

0,048

0,050

16.800

3.840,00

4.000

1.685

kWh

1,05

84.924,0

1 x 4/7 –
Group 4

249.454

368.062

Concrete mixer –
Capacity: 250,0 liters

165

30.210.000

0,9

0,19

0,065

0,050

31.309

11.900,91

9.155

1.685

kWh

1,05

19.461,8

1 x 3/7 –
Group 4

210.146

284.045

Bulldozer –
Capacity: 110 CV

280

851.855.000

0,9

0,14

0,058

0,050

383.335

176.455,68

152.117

22.591

Liter
Diezel

1,03

1.070.361,6

1 x 4/7 –
Group 4

249.454

1.689.735

Dump truck –
Capacity: 5,0 T

260

437.559.000

0,9

0,17

0,075

0,060

257.487

126.218,94

100.975

41

Liter
Diezel

1,03

954.017,9

1 x 2/4
truck operator

234.000

1.367.883

DANG PHAM VIET ANH – 1500665 – 65KTE

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PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH

Table 2.2.7: Price difference of construction equipment
No.
1
2
3

Machine

Unit

Concrete pump –
Capacity: 40 – 60 m3/h
Bending machine for rebar –
Capacity: 5,0 kW
Single bucket, crawler excavator –
Bucket capacity: 1,25 m3

Quantity

Shift

29,171

Shift

17,139

Shift

4,974

Norm
price (đ)
2.172.758

Current
notice (đ)
2.138.467

244.524

Difference

Total difference

-34.291

-1.000.316

242.828

-1.696

-29.067

3.300.867

3.917.934

617.067

3.069.491

240.020

238.701

-1.319

-110.042

236.112

235.171

-941

-19.418

4

Needle vibrator for concrete – Capacity: 1,5 kW

Shift

83,429

5

Vibratory plate compactor for concrete –
Capacity: 1,0 kW

Shift

20,636

6

Handheld soil compactor – Weight: 70kg

Shift

76,373

337.488

352.140

14.652

1.119.020

7

AC welding machine – Capacity: 23kW

Shift

45,197

368.062

359.018

-9.044

-408.765

8

Concrete mixer – Capacity: 250,0 liters

Shift

22,027

284.045

281.972

-2.073

-45.662

9

Bulldozer – Capacity: 100,0 CV

Shift

0,662

1.689.735

2.031.723

341.988

226.301

10

Dump truck – Capacity: 5,0 T

Shift

48,145

1.367.883

1.672.699

304.816

14.675.366

11

Other machines

%

-11.104

TOTAL

17.465.662

 Total construction machine cost: M = C + CLNC = 225.364.840 + 17.465.662 = 242.830.502 (dong)

DANG PHAM VIET ANH – 1500665 – 65KTE

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PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH

5. Bid package price
The bid package estimate is
a. Direct cost (T)
T = VL + NC + M
= 1.989.890.030 + 392.347.309 + 242.830.502
= 2.625.067.841 (VND)
b. Indirect cost (GT)
GT = C + LT + TT
 In which:
o C: General cost.
o LT: Cost for temporary housing and construction management.

o TT: The cost for some work cannot be determined form the design.
 General cost (C)
C = ĐMTL (%) x T
ĐMTL = 7,3% according to Appendix 3 - Circular 11/2021/TT-BXD.
 C = 7.3% x 2.625.067.841 = 191.629.952 (VND)
 Cost for temporary housing and construction management (LT)
LT = ĐMTL (%) x T
ĐMTL = 1,1% according to Appendix 3 - Circular 11/2021/TT-BXD.
 LT = 1,1% x 2.625.067.841 = 28.875.746 (VND)
 Cost for some work cannot be determined form the design (TT)
TT = ĐMTL (%) x T
ĐMTL = 2,5% according to Appendix 3 - Circular 11/2021/TT-BXD.
 TT = 2,5% x 2.625.067.841 = 65.626.696 (VND)
 Total indirect cost:
GT = C + LT + TT
= 191.629.952 + 28.875.746 + 65.626.696
= 286.132.394 (VND)
c. Pre-determined taxable income (TL)
TL = ĐMTL x (TT + GT)
ĐMTL: Norms (%) is determined according to Appendix 3, table 3.5 of Circular 11/2021/TT-BXD
dated August 31, 2021, issued by The Ministry of Construction, DMTL = 5,5%
 TL = 5,5% x (2.625.067.841 + 286.132.394) = 160.116.013 (VND)
d. Construction cost before taxes (G)
G = T + GT + TL
= 2.625.067.841 + 286.132.394 + 160.116.013
= 3.071.316.248 (VND)
e. Value added tax (GTGT)
GTGT = 10% x G = 10% x 3.071.316.248
= 307.131.625 (VND)
f. Construction cost after taxes (𝐺 )

G = G + GTGT = 3.071.316.248 + 307.131.625
= 3.378.447.873 (VND)
g. Contigency cost (𝐺 )

G

=G

+G

 G : is the type of cost used in case of arising volume of construction package estimate, which is
determined by the following formula:
G
=G xK
 K : Contingency factor for arising volumes of works (K ≤ 5%)
DANG PHAM VIET ANH – 1500665 – 65KTE

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PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH

 Choose K

= 5%
G

= 3.378.447.873 x 5%
= 168.922.394 (dong)

 G : The contingency cost for the price inflation factor in the construction package estimate, which is
determined by the following formula:
G
=
G x [(I
± ΔI
)t – 1]
 In which:
o T: Length of time of implementation of construction investment project: T > 1 year (330 days
~ 1 year = 4 quarters)
o t: Ordinal number of capital allocation year under the project implementation plan: t =1
o GXD : Estimated construction cost before contingency;
o IXDCTbq: Construction price index;
o ±∆IXDCT: The average fluctuation of construction price index by year of works construction.
 The construction price index is shown in the table below:
Table 2.2.8: Construction price index – Continuous construction price index
No.
Year
2
2020
3
2021
4
2022
Average construction price index

Continuous construction cost index
111,01%
104,92%
111,26%

109,063%

 The contingency cost of inflation is determined as below:
GDP2 = (IXDCTbq – 1) x GXD
= (1,09063 – 1) x 3.378.447.873
= 306.188.731 (VND)
 Total contingency cost (𝐺 ):
G =G
+G
= 168.922.394 + 306.188.731
= 475.111.125 (VND)
h. Other cost (𝐺 )
 Other costs are determined by making estimates of taking a percentage of direct cost in order to
suit the specific conditions of each bid package.
 Within the scope of the project, according to the contractor’s experience with the similar bid
package, choose other cost equal to 2% of the direct cost.

G = 2% x G
= 2% x 3.378.447.873
= 67.568.957 (dong)

DANG PHAM VIET ANH – 1500665 – 65KTE

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PROJECT CONSTRUCTION ECONOMICS AND PROCUREMENT OPERATION – PH.D NGUYEN TUAN ANH

Table 2.2.8: Summary of the bid package price
No.

Content

Symbol

Calculation

Value

T

VL + NC + M

2.625.067.841

I

DIRECT COST

1

Material

VL

A

1.989.890.030

2

Labor

NC

B1

392.347.309

3

Construction machine

M

C1

242.830.502

II

INDIRECT COST

GT

C + LT + TT

286.132.394

1

General cost

C

T x 7,3%

191.629.952

2

Cost for temporary housing and
construction management.

LT

T x 1,1%

28.875.746

3

The cost for some work cannot be
determined form the design

TT

T x 2,5%

65.626.696

PRE-CALCULATED TAX INCOME

TL

(T+GT) x 5,5%

160.116.013

G

(T+GT+TL)

GTGT

G x 10%

III

Construction cost (VAT excluded)
IV

VALUE ADDED TAX
Construction cost (VAT included)

G

V

CONTINGENCY COST

𝐆𝐃𝐏

1

Contingency cost for rising volume of
works

G

2

Contingency cost for price inflation

G

VI

OTHER COST
BID PACKAGE PRICE
ROUNDING VAVLUE

𝐆𝐤

G + GTGT
𝐆𝐃𝐏𝟏 + 𝐆𝐃𝐏𝟐
G

x 5%

3.071.316.248
307.131.625
3.378.447.873
475.111.125
168.922.394
306.188.731

𝐆𝐗𝐃 x 2%
𝐆𝐗𝐃 + 𝐆𝐃𝐏 + 𝐆𝐤

67.568.957
3.921.127.955
3.921.127.000

III. Determine the bid price
1. Principles of bid price
 The selected technical and technological measures applied to the bidding package must fully satisfy
the requirements of the bidding documents.
 The private norm for labor and machine of the enterprise must be consistent with the technical and
technological solutions applied to the bidding package.
 The unit price of materials, labor and construction machines within the enterprise must be consistent
with the technical and technological solutions applied to the bidding package.
 The volume of construction work must comply with the bidding documents and the design provided
by the investor.
 The financial and commercial plans applied to the bidding package must fully satisfy the requirements
of the bidding documents.
 Construction site management costs are determined according to technical - technological plan,
construction organization plan, site design plan and site management department.
 Enterprise-level general costs allocated to the bidding package are taken according to the average
DANG PHAM VIET ANH – 1500665 – 65KTE

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