Chapter Four Hundred and Twenty Concession Does Not Equal Suffering
"District Chief, for the tourist road project, before the construction drawings are released, if we follow your previous budget of 2 billion, it would be obviously unfair to us!
This is inconsistent with the principles of fairness and justice in contract law.
However, if you go by CITIC Investment Bank's budget, you obviously think it is unreasonable and the asking price is sky-high!
Therefore, my opinion is that we can take on this project, but we cannot do it according to the previous budget!
Our district government organization entrusts the design unit to design the tourist road, and then makes a budget based on the design drawings! We are responsible for the investment, including bearing the design costs, and we are also the general contractor of the construction, but the construction costs must be settled according to the facts!" Yu Qingyang did not
Don't overdo it, just tap it a little.
"Settlement based on facts? How to control costs?"
"Your district government can set up a management department to manage the safety, quality, cost, and progress of the entire project!" Yu Qingyang said with a smile.
Originally, both the FEPC model and the BT model were almost turnkey contracting models.
They are all government or social institutions responsible for initiating and establishing projects, and then investors are responsible for financing, design, construction, etc., and are finally handed over to the project sponsor after completion.
In other words, the safety, quality, cost, and progress of this project are all managed by the investors. Government agencies or social institutions are only responsible for the final acceptance of the project. Now Yu Qingyang has handed over the project management rights, which is not a big concession.
!
Even District Chief Wang was a little surprised. Originally, District Chief Wang had already thought about it and agreed to some of Yu Qingyang's requests that were not too excessive. Unexpectedly, Yu Qingyang not only did not make any excessive requests, but actually made huge concessions.
As mentioned before, an engineering project can be divided into three stages, the decision-making stage, the implementation stage, and the use stage.
According to the FEPC model and the BT model, their district government is only responsible for the decision-making stage and the use stage, while the implementation stage is all handled by Yu Qingyang’s Huayu Investment.
The design of construction drawings belongs to the implementation phase, including the safety, quality, cost, and progress management of the project construction. Now Yu Qingyang has given up all of them.
The district government will naturally welcome the ability to control the safety, quality, cost, and progress of the project. As for Yu Qingyang’s proposal for settlement based on facts, is this considered a condition? Definitely not, it is a reasonable request!
Don’t think that Yu Qingyang suffered a loss because of Hua Yu’s investment.
There is a very deep routine here, which is to settle accounts based on facts.
Make settlements based on actual facts. Anyone who does engineering work, especially those who do settlements, knows that this is a very good condition.
According to the actual settlement, how much money can be settled in the end is a great test of the business ability of the construction company.
Maybe for a project with a budget of 2 billion, you can only settle for 1.8 billion, or even lower.
However, it is also possible to settle more than three billion yuan.
Settlement based on facts, as long as you can provide supporting materials to prove that you did the job, you can settle the bill.
The author once worked on a foundation excavation project.
The budget was one million, but at that time it was estimated that the project would not make any money, or even lose money.
But because the owner is the superior supervisory unit, the boss can do whatever it takes to compensate for the loss.
One of the clauses in the contract is that settlement should be based on actual facts. In the end, the settlement amount for this project was more than 9.6 million.
How to do it? That is, you have to do good public relations.
Public relations here does not mean how many gifts you give, but that you have to find a way to get the owners to follow your ideas.
Many construction contents that were not on the original drawings were added, making the owner think that adding these construction contents was necessary.
Then apply for a visa or make changes to the drawings.
Take the greening on both sides of the tourist road as an example. You can use ordinary seedlings or precious seedlings, but the final cost of the two seedlings is very different.
There is also mountain support, which can be shotcrete anchor cable support, anchor cable retaining wall slope protection, and anchor pull lattice slope protection. The cost difference is also very big.
"Xiao Yu, do you have any other requests?"
"Other requirements? I hope that our company's construction project consulting company will undertake the construction management tasks of the entire project, and then our government will dispatch relevant personnel to the tourist road construction management project department, and we will jointly manage it!"
"There is no problem with this. We can set up a joint project management department to jointly manage the tourist road project!" District Chief Wang readily agreed.
"Do you need our help coordinating the bank?" District Chief Wang asked again.
"Let's contact ourselves first. If we can't solve the problem, we can ask the leaders to help coordinate!" Yu Qingyang declined District Mayor Wang's kindness.
Have problems with bank loans?
How is that possible?
Some time ago, Huayu Investment received a loan of 20 billion from HSBC, which was very unpleasant to the four major banks.
Now Yu Qingyang is looking for a loan of 2 billion from the four major banks. The four major banks must be very happy.
It’s not like borrowing money out of thin air to invest in tourism road projects, and the government will settle the bill with land. This is a high-quality loan resource.
"Okay, you guys get in touch first!"
Then Yu Qingyang communicated with District Chief Wang on some details before saying goodbye and leaving.
Yu Qingyang and District Chief Wang only reached a consensus on the tourist road project. The rest still requires further communication and coordination by professionals below on various details before an investment contract is finally signed.
Back at the company, Yu Qingyang called Xue Qin and asked her and Zhao Yunli to come to his office.
"Mr. Xue, Minister Zhao, there are two projects, please arrange for someone to handle them!
One is my hometown, Caidu City, where I plan to build a seafood trading market and a port terminal with ten 1,000-ton berths and twenty 500-ton berths.
I have already talked with Secretary Wang from Caidu City about this project last time. I will call Secretary Wang later and you can follow up on the specific situation!"
"Okay, Mr. Yu, I will go to Caidu in person to follow up on this project!" Zhao Yunli hurriedly agreed.
It is natural for the boss to have a positive attitude towards the project in his hometown.
"Well, you can follow up on the Caidu project. Mr. Xue, the Dongcheng District tourist road project has been decided by the district. Leave it to us! You are responsible for this matter personally!"
"Mr. Yu, what are the general conditions in Dongcheng District?"
“The preliminary decision is that both parties will jointly set up a project management department and the project will be settled according to the facts!
You can talk about the rest later!”
"Okay, I understand! I'll contact the Dongcheng District Government to discuss the remaining details!"
"Do we have enough funds in our account? Do we still need a loan?"
"That's enough for now!"
"That's okay!" Yu Qingyang nodded.
The land transfer fees in Beijing, Yangcheng, Pengcheng and Magic City are tens of billions, but that does not require a one-time friendship.
You only need to pay it in full before applying for the house pre-sale permit.
In some places, you can even pay in batches and apply for pre-sale licenses in batches.
For example, if you acquire 1,000 acres of land at one time, you can first pay the transfer fee for 200 acres of the land and apply for the pre-sale license corresponding to the 200 acres of land.
Then sell the house and pay other transfer fees.
Therefore, after paying the first batch of land transfer fees in the four major first-tier cities, the company still has tens of billions of funds in its account.
Some people may question, Quanshui and Jeju have invested tens of billions, what are you doing with this little money?
It needs to be made clear that the total investment is tens of billions, but it is not a one-time expenditure.
The construction cycle in both places is about three years, so the combined expenditure of more than 20 billion in these two places is divided into three years.