Chapter 23 The total project cost will drop by 15%
Li Changan from Ruizhi Group saw that it was almost the agreed time for negotiation. Huang Liming, the person in charge of recruitment and procurement, and Cui Kai, the contract person in charge of Ruizhi Group who participated in the negotiations, all came to the conference room with their notebooks and the first draft of the contract.
Li Changan of Ruizhi Group said: "All the people from both sides participating in the meeting today are here. Please sit down. I will introduce the two parties to each other."
Li Changan of Ruizhi Group pointed to a man in a suit and said: "This is Manager Huang Liming and Huang, the head of the recruitment department of our Ruizhi Group."
Then he pointed at a man in casual clothes and said, "This is Manager Cui Kaicui, the contract manager of our Ruizhi Group."
During Li Changan's introduction, Hua Baiyin nodded promptly to the introduced Huang Liming and Cui Kai, and said: "Hello, Manager Huang. Hello, Manager Cui."
Li Changan pointed at Hua Baibai and Huang Liming. Cui Kai and the other two introduced: "This is the protagonist of today's contract negotiation, Mr. Hua Baibai. He is the person in charge of the Commerce Department of the Fifth Division of Oriental Construction Co., Ltd."
Li Changan pointed at Zhang Yunqing and pointed to Huang Liming. Cui Kai and the other two introduced: "This is an employee of the Commerce Department of the Fifth Division of Oriental Construction Co., Ltd., his name is Zhang Yunqing."
After Li Changan introduced everyone relatively briefly, he then said: "Okay, now, the people attending the meeting today already know each other." Then he began his opening remarks.
Li Changan said: "First of all, I would like to thank Mr. Hua Centenary Hua. Mr. Hua Centenary Hua and Comrade Zhang Yunqing of Southwest Construction Co., Ltd. made a special trip from Kyoto to come to our Xichuan Provincial Capital Ruizhi Building to design the No. 1 Municipal Park project with us.
Construction Contract Business Negotiation.”
Li Changan continued: "Well, the No. 1 Municipal Park project has been experienced for a long time. Let's briefly review it. We have had several rounds of talks with several powerful units. Basically now
Negotiations with Western Construction have reached a very critical stage. Well, the general situation of this project is that it covers an area of about 200 acres. The specific area will be based on the red line map of the land given to us by the government. There are many red lines.
That’s a lot. The 200 acres we’re talking about now are estimates from the exchanges.
Li Changan: "The estimated total investment for this project in our Ruizhi Group is 200 million. According to this estimate, the total cost of the design and construction is about 160 million. This range of 160 million is what today's comparison with Western Architecture
The scope of cooperation negotiated by a joint stock company."
When Li Changan said this, he said to the person in charge of the contract: "Manager Cui, please send the printed draft of the contract to several people attending the meeting."
Cui Kai stood up and said, "Okay. I'll send it to everyone right away."
Cui Kai quickly sent four printed drafts of the contract to everyone and quickly returned to his seat.
Li Changan waited for Cui Kai to finish sending the first draft of the contract and said: "Well, please take a look at it. What is in front of each of us is the first draft of the cooperation contract between Ruizhi Group and Western Construction that will be negotiated and finalized today. Hmm.
Now, let’s ask our contract manager, Manager Cui Kaicui, to introduce to us some of the key terms of this contract.”
Cui Kai cleared his throat and said, "Well, okay, Mr. Li. I will now give a brief introduction to the key terms of the first draft of this contract to Mr. Hua Baibaihua and Mr. Zhang of our cooperative unit, Western Construction Co., Ltd.
First of all, the large scope of work included in this contract is the design of the entire 200-acre park, plus the construction of the municipal park project. As for our design requirements, in addition to the design must be in accordance with the standards stipulated by current national laws and regulations
, there are also requirements for the main person in charge of this design, who needs to be a very famous design creative person with rich practical experience in municipal park design. The design fee is calculated according to the current design fee calculation standard and then discounted by 50%
Mr. Hua, do you have any different opinions?"
Hua Baibai became nervous after hearing this, and replied: "The design institute of our Western Architecture Company has Class A landscape design qualifications, and there are quite a few famous figures in the design field. Their treatment is also considered top-notch in the industry.
The design results produced are also visible to all across the country.”
Cui Kai replied: "Mr. Hua, we are familiar with what you said, that's why we found you and conducted today's negotiations."
Hua Baibai said: "Our company usually signs a contract with a 10% discount on the design fee calculated according to national standards. If it is a 50% discount, I will definitely not be able to pay the contract when I go back to the company, and the design fee standard is such a low one."
, those design masters will avoid this project. In this way, there will be no way to satisfy the hiring of very famous design creative personnel."
Li Chang'an heard what Hua Baibai said and replied: "Mr. Hua, let's see. Most of our usual design projects use the 50% discount standard. Now the design of our project does have some differences from the usual projects.
If the requirements are different, it can be appropriately higher. But we cannot just reduce it by 10% according to the condition you mentioned. We will calculate it based on the national design charging standard multiplied by 70%. How about it?"
Hua Baibai replied with a look of embarrassment: "Mr. Li, although 70% is a lot higher than 50%, the design charging standards of our Western construction companies are indeed not that low. I'll go back to the company and apply again.
Under preferential conditions, we tentatively calculate the design fee based on the national design charging standards multiplied by 80%. Do you think this is okay?"
Li Changan thought for a while and replied: "This design fee accounts for the total investment, and it is not large. Let's calculate it as 80% as you said. But please tell your company that the comprehensive design fee of the main creative personnel
The quality must be assigned to very outstanding people in your company to ensure that the design results are of a high level and to shorten the reporting time and modification time in the intermediate design process."
Hua Baibai replied: "Okay, thank you Mr. Li."
After Cui Kai marked 80% of the conclusions reached between Li Changan and Hua Baibai on the printed manuscript, he continued: "For the No. 1 Municipal Park construction project, we implement the national list pricing standards for the pricing standards for this part of the construction.
, the fixed group price is calculated according to our Xichuan Province construction project list. The material price is based on the information price of the prefecture-level city where our project is located; there is no information price in the location, but the prices in other prefecture-level cities in Xichuan Province are based on the prices in other places.
City-level implementation; if there is no information on the price in Xichuan Province, the two parties will determine the price through market inquiry. There will always be no different opinions. "
Hua Baikan replied more simply: "No."
Cui Kai continued: "The project cost calculated based on the above opinions will be reduced by 15% as the settlement price of Western Construction."