537.Regulations of Shenzhen Municipality on the Administration of Construction Pricing and Estimating

深圳市建设工程造价管理规定

Regulations of Shenzhen Municipality on the Administration of Construction Pricing and Estimating

　　Chapter I General Provisions

　　Article 1 To standardize construction pricing and estimating, reasonably determine and effectively control construction costs, improve investment efficiency and safeguard the legitimate rights and interests of all parties to construction projects, these Regulations are formulated in accordance with relevant laws and regulations and in light of the actual needs of Shenzhen Municipality.

　　Article 2 These Regulations shall apply to the supervision and administration of construction pricing and estimating within the administrative area of Shenzhen Municipality.

　　Construction pricing and estimating as mentioned in these Regulations refer to the determination and control of construction costs, as well as related contract management, construction period management and cost consulting.

　　Article 3 The determination and control of construction costs invested by state-owned funds or collectively owned funds shall be governed by these Regulations, while the determination and control of construction costs invested by other funds may refer to these Regulations.

　　Article 4 The municipal competent administrative authorities of construction (“the municipal construction authorities”) shall supervise and administer construction pricing and estimating in Shenzhen Municipality. The municipal construction pricing and estimating authorities (“the municipal pricing and estimating authorities”) shall specifically supervise construction pricing and estimating.

　　The district competent administrative authorities of construction (“the district construction authorities”; including the authorities of new areas) and the district construction pricing and estimating authorities (“the district pricing and estimating authorities”) shall supervise and administer pricing and estimating of construction projects on district-level non-financial state-owned funds or collectively owned funds.

　　The authorities of development and reform, finance, transport, water affairs and audit shall administer and supervise construction pricing and estimating according to their respective duties.

　　Article 5 A party or stakeholder that believes construction pricing and estimating violates the provisions of these Regulations shall have the right to complain to the construction authorities or the pricing and estimating authorities according to the law.

　　The construction authorities and the pricing and estimating authorities shall handle complaints in a timely manner according to relevant regulations.

　　Chapter II Pricing and Estimating Standards and Cost Information

　　Article 6 The municipal construction authorities shall, according to the principles of advanced technologies, economy, reasonability, safety, applicability, energy saving and environmental protection, formulate and issue pricing and estimating standards after investigation, statistical analysis and estimation. Timely adjustments and supplements shall also be made according to national regulations, construction techniques and the market.

　　Construction enterprises shall be encouraged to determine quotas, to which the municipal construction authorities shall give technical support.

　　Article 7 Construction pricing and estimating standards mainly include:

　　1. The pricing and estimating procedure, including estimate, budget estimate, budget, settlement and final settlement;

　　2. Pricing and estimating specifications of the bill of quantities, other professional specifications and supplementary specifications;

　　3. Consumption standard;

　　4. Standard of construction period;

　　5. Construction cost index.

　　Article 8 Pricing and estimating standards shall be an important basis for each party engaged in construction pricing and estimating to reasonably determine and effectively control construction costs.

　　Article 9 The municipal construction authorities shall design the standards for construction pricing and estimating data, organize the collection of construction pricing and estimating data generated during the whole process and establish a platform for applying construction pricing and estimating data by using big data and other technical means.

　　The authorities of construction, development and reform, finance, transport, water affairs, planning and natural resources, public works and state-owned assets supervision and administration and public resource trading agencies shall share construction pricing and estimating data generated within the scope of their duties.

　　The construction pricing and estimating and tender evaluation software developed by software development enterprises shall conform to relevant data standards.

　　Article 10 The municipal construction authorities shall timely and accurately publish the price index and cost information of labor, materials and machinery daily working unit price on special publications every month and on their public websites. The approach to publish cost information shall be timely adjusted according to the market.

　　Article 11 Cost information is the basis for compiling pricing and estimating reports and determining the tender sum limit as well as a reference for the adjustment of labor and material prices.

　　For materials and equipment whose prices are not included in the cost information but estimated contract prices reach specified limits and which are not subject to open tendering and bidding, their prices shall be determined based on openness, transparency, sufficient competition and relevant inquiry and procurement regulations. Specific measures shall be formulated separately by the municipal construction authorities.

　　Article 12 The municipal public resources trading agencies shall, according to the methods and rules specified by the municipal pricing and estimating authorities, regularly publish the bid-winning down rate of construction projects that must invite bidding according to the law, for the reference of all parties engaged in construction pricing and estimating.

　　Article 13 In order to design pricing and estimating standards and release cost information, the municipal construction authorities may collect consumption norm and standard, pricing and estimating reports, market transaction prices and other engineering technical and economic data, in which relevant parties shall cooperate. The municipal construction authorities shall keep confidential information provided by all parties and individuals.

　　Chapter III Determination and Control of Construction Costs

　　Article 14 Construction costs shall be determined and controlled according to the following principles:

　　1. General estimate shall prevail over budget and settlement (final settlement) at completion;

　　2. Construction costs shall be controlled throughout decision-making, design and construction;

　　3. Decision-making, design, construction, use, maintenance, demolition and other costs throughout the whole life cycle of the project shall be optimal.

　　Article 15 The development party shall determine and control all costs incurred during the construction period.

　　The design, supervision and cost consulting parties shall bear the corresponding responsibilities in determining and controlling construction costs as agreed.

　　Article 16 The development party shall be encouraged to authorize the same enterprise of construction cost consulting to provide cost consulting services throughout the construction period.

　　Pricing and estimating reports shall bear the signature of those who compile, review and approve them, and shall be stamped with the special seals of the registered cost engineers of those who compile and review the pricing and estimating reports and their employers before being submitted.

　　Article 17 Pricing and estimating reports shall be compiled according to the following provisions:

　　1. Investment estimate: Made according to the construction scale, construction standards, construction period, pricing and estimating standards and cost information;

　　2. Budget estimate at design stage: Made according to preliminary design documents, investment estimate, pricing and estimating standards and cost information;

　　3. Construction drawing budget: Made according to the construction drawings, design estimate, conditions at the construction site, construction technologies, pricing and estimating standards and cost information;

　　4. Bill of quantities: Made according to the construction drawings, bidding documents, and pricing and estimating standards;

　　5. Tender sum limit: Made according to the budget on the construction drawing budget or budget estimate at design stage, bidding documents, planned construction period, engineering practice, pricing and estimating standards, cost information and bill of quantities;

　　6. Tendering sum: Made according to the requirements of the bidding documents, the bill of quantities provided by the tenderee, conditions at the construction site and operation and management of the enterprise;

　　7. Variation cost: Made according to the instruction on variation of works, design change and the method, procedure and time limit of determining variation cost agreed in the contract;

　　8. Settlement at completion: Made according to the construction contract, design documents, documents about variations and claim reports.

　　Pricing and estimating reports shall be compiled according to mandatory standards for construction costs.

　　Article 18 The development party shall focus on the control of construction costs at the design stage to avoid unnecessary designs.

　　The design party shall conduct an economic analysis at each stage of project design and, on the premise of meeting functional requirements, fully consider such factors as energy conservation, emission reduction, ecological and environmental protection and maintenance costs after the project is put into use. Methods such as quota design and value engineering shall be adopted for design comparison so as to realize optimal costs throughout the construction period.

　　Article 19 When reviewing the construction drawings, relevant parties shall review whether the construction drawings reach the indexes for quota design, energy conservation and emission reduction and whether the construction drawing budget exceeds the budget estimate at design stage.

　　Article 20 Where bidding is carried out based on the bill of quantities, the bill of quantities shall be an integral part of the bidding documents. The tenderer shall be responsible for its accuracy and completeness.

　　The deviation rate of the tender sum limit caused by errors in the bill of quantities shall not exceed 5% of the tender sum limit calculated at the pricing and estimating specifications of the bill of quantities.

　　Article 21 The development party shall determine a reasonable construction period according to the actual conditions of the project and the standard of construction period. If it is necessary to shorten the construction period, a sufficient demonstration shall be made and corresponding measures shall be taken to ensure project quality and safety.

　　The municipal construction authorities shall formulate measures for administering the construction period.

　　Article 22 During the performance of the contract, if the market price of labor or major materials used in the project rises or falls by more than 5%, the contracting parties shall adjust the contract price according to the principle of reasonable risk sharing. If otherwise stipulated in the contract, such stipulation shall prevail.

　　Article 23 The maintenance or demolition plan of a building shall, on the premise of ensuring the quality and safety of the building, be formulated to ensure optimal costs throughout the construction period, energy conservation, emission reduction, ecological and environmental protection and recycling so as to reduce maintenance and demolition costs and reasonably extend the service life of the building.

　　Article 24 Within five years after the construction project is put into use, relevant competent administrative authorities may, as necessary, authorize professional institutions to evaluate the cost control effect throughout the whole life cycle of major construction projects and put forward opinions and suggestions for improvement.

　　Chapter IV Supervision of Construction Costs

　　Article 25 When municipal and district pricing and estimating authorities shall supervise construction pricing and estimating according to standardized requirements, including unified verification items, verification methods and verification time limits specified by Shenzhen Municipality.

　　Article 26 Pricing and estimating reports for government-invested projects shall be reviewed according to relevant laws and regulations.

　　The pricing and estimating authorities, review authorities of government investment, review authorities of financial investment, authorities of state-owned assets supervision and administration and public resource trading agencies shall establish systems for sharing verification and review results of pricing and estimating reports, project change registration and tender sum limit. Specific measures shall be formulated separately by the municipal construction authorities.

　　Article 27 For a project on non-financial state-owned funds or collectively owned funds that has passed the review on direct contracting projects or construction applications according to the law and has a contract price of more than 1,000,000 yuan, the development party shall submit the following documents to the pricing and estimating authorities for review:

　　1. Construction drawing budget of a direct contracting project;

　　2. Settlement at completion (including interim settlement) confirmed by the contracting parties.

　　Construction projects on municipal-level non-financial state-owned funds or collectively owned funds shall be reviewed by the municipal pricing and estimating authorities; Construction projects on district-level non-financial state-owned funds or collectively owned funds shall be reviewed by the district pricing and estimating authorities. Where construction projects are on funds from complex sources or it is difficult to determine the pricing and estimating authorities according to fund sources, the municipal construction authorities shall determine the review authorities.

　　Article 28 The state-owned assets supervision and administration authorities shall supervise construction parties of construction projects on non-financial state-owned funds submitting the documents specified in Article 27 to the pricing and estimating authorities for review.

　　The pricing and estimating authorities may, in conjunction with the state-owned assets supervision and administration authorities, jointly inspect the pricing and estimating management of construction projects on non-financial state-owned funds according to the actual situation of their work.

　　When auditing the economic responsibilities of major leading personnel of construction parties, the auditing authorities shall consider the submission of relevant information about construction projects on non-financial state-owned funds.

　　Article 29 The pricing and estimating authorities shall verify the authenticity, accuracy and completeness of pricing and estimating reports submitted for review.

　　The pricing and estimating authorities may, if necessary, hire professional institutions to assist in the cost review in light of relevant regulations but shall not charge the party subject to the review.

　　The enterprise of construction cost consulting shall not provide cost consulting services and assist in the review of the same project at the same time.

　　Article 30 The pricing and estimating authorities shall, from the date on which the party subject to the review submits all necessary documents, issue a conclusive review report within the following time limits:

　　1. The time limit for reviewing the construction drawing budget is seven working days;

　　2. The time limit for reviewing settlement at completion of a construction project with construction costs of less than 50 million yuan is 45 days, while that for a construction project with construction costs of more than 50 million yuan is 60 days.

　　The conclusive review report made by the pricing and estimating authorities shall state the facts, reasons, bases and other matters identified by the review.

　　The state-owned assets supervision and administration authorities shall strengthen the supervision and administration of construction projects on non-financial state-owned funds based on the conclusive review report about review.

　　Article 31 The pricing and estimating authorities shall publish the results of settlement at completion and the review submitted by the development party on the public websites of the construction authorities for public review, except for those that shall not be disclosed according to the law.

　　Article 32 The development party of a construction project on state-owned funds or collectively owned funds shall conclude a contract with reference to the model construction project contract and positive and negative lists issued by the municipal construction authorities or other competent authorities.

　　Article 33 For any variation in a construction project on non-financial state-owned funds, the development party shall implement it in accordance with relevant regulations specified by the state-owned assets supervision and administration authorities.

　　Article 34 The construction authorities shall supervise and inspect pricing and estimating reports and construction project contracts and investigate and punish illegal acts according to the law, in which relevant parties and individuals shall cooperate.

　　The authorities of audit, finance, transport, water affairs and state-owned assets supervision and administration as well as the development party of a government-invested project shall report illegal acts in construction pricing and estimating they find to the construction authorities according to the law and provide relevant evidence.

　　Chapter V Practice Requirements

　　Article 35 An enterprise that offers cost consulting for construction projects shall obtain the business license and operate within the scope of business specified by the business license. Practitioners shall obtain corresponding qualification certificates and register according to the law and practice within the scope of registration.

　　Enterprises of construction cost consulting and pricing and estimating practitioners shall be encouraged to buy occupational insurance and enhance risk resistance.

　　Enterprises of construction cost consulting shall be encouraged to establish personnel training and reserve mechanisms and improve the competence and comprehensive abilities of pricing and estimating practitioners.

　　Article 36 Enterprises of construction cost consulting that operate within Shenzhen Municipality shall go through the integrity declaration procedure with the municipal construction authorities.

　　The municipal construction authorities shall supervise and inspect the compliance with laws, regulations and these Regulations of enterprises of construction cost consulting and their practitioners. Efforts shall also be made to investigate and punish illegal acts according to the law. Bad acts shall be recorded and published according to relevant regulations.

　　Article 37 The party that compiles pricing and estimating reports of construction projects and pricing and estimating professionals shall ensure the quality of pricing and estimating reports and strictly control quality deviation.

　　The deviation rates of pricing and estimating reports of construction projects such as the construction drawing budget, tender sum limit and settlement at completion shall not exceed 5% of those calculated at pricing and estimating standards and contract pricing and estimating principles.

　　Article 38 The party that compiles pricing and estimating reports is prohibited from engaging in the following activities:

　　1. Offering consulting services to the tenderee and the tenderer or two or more tenderers for the same project at the same time;

　　2. Subcontracting the consulting contract it has agreed;

　　3. Deliberately lowering or raising construction costs;

　　4. Issuing false pricing and estimating reports;

　　5. Conducting unfair competition by giving rebates or maliciously lowering charges;

　　6. Other activities prohibited by laws, regulations and rules.

　　Article 39 The cost pricing and estimating practitioner is prohibited from engaging in the following activities:

　　1. Altering, reselling, renting, lending or illegally transferring the registration certificate or practice seal in other forms;

　　2. Practice beyond the scope specified in qualification-based practice permits;

　　3. Registering in two or more legal entities at the same time;

　　4. Deliberately lowering or raising construction costs;

　　5. Signing false pricing and estimating reports;

　　6. Engaging in bribery and seeking improper benefits in the course of practice;

　　7. Other activities prohibited by laws, regulations and rules.

　　Article 40 Industry associations of cost consulting shall, according to laws, regulations, rules and their articles of association, formulate the industry code of conduct, service norms and industry self-discipline mechanisms, safeguard the legitimate rights and interests of their members, standardize the operation of enterprises of construction cost consulting, strengthen the collaboration between the cost consulting industry in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) and promote the healthy development of the industry.

　　Chapter VI Legal Liabilities

　　Article 41 If the construction authorities, the pricing and estimating authorities or other authorities that are obliged to supervise construction costs according to the law conduct any of the following acts, persons chiefly in charge and persons directly responsible shall be dealt with according to the law. Where crimes are constituted, their criminal liabilities shall be investigated according to the law:

　　1. Failing to issue the conclusive review report within the prescribed time or the conclusive review report issued does not meet relevant requirements;

　　2. Failing to publish the results of settlement at completion and review submitted by the development party for public review;

　　3. Illegally reviewing, punishing or taking compulsory administrative measures;

　　4. Failing to design pricing and estimating standards or publishing cost information according to the law;

　　5. Engaging in abuse of power, neglect of duty, favoritism or malpractice;

　　6. Failing to perform or incorrectly performing statutory duties.

　　Article 42 Buyers and suppliers who violate the second paragraph of Article 11 of these Regulations as well as inquiry or procurement regulations shall be ordered by the construction authorities to make corrections within a time limit. Those who fail to make corrections within the time limit shall be fined 30,000 yuan. If laws and regulations provide otherwise, such provisions shall prevail.

　　Article 43 Those who violate Article 13 of these Regulations and refuse to provide relevant information or provide false information shall be ordered by the municipal construction authorities to make corrections within a time limit. Those who refuse to make corrections within a time limit shall be fined 3,000 yuan.

　　Article 44 In violation of the second paragraph of Article 20 of these Regulations, where the deviation rate of the tender sum limit caused by errors in the bill of quantities exceeds 5% of that calculated at pricing and estimating specifications of the bill of quantities, the construction authorities shall punish the tenderee according to the following standards and impose a fine on the person directly responsible of 10% of the fine on his employer:

　　1. A fine of 30,000 yuan shall be imposed if the deviation rate is more than 5% but less than 10%;

　　2. A fine of 50,000 yuan shall be imposed if the deviation rate is more than 10% but less than 15%;

　　3. A fine of 80,000 yuan shall be imposed if the deviation rate is more than 15%.

　　Article 45 Those who violate the first paragraph of Article 27 of these Regulations and fail to submit relevant pricing and estimating reports to the pricing and estimating authorities for review shall be ordered by the construction authorities to make corrections within a time limit. Those who fail to make corrections within a time limit shall be fined 30,000 yuan.

　　Article 46 Those who violate the first paragraph of Article 34 of these Regulations and do not cooperate with the inspections shall be ordered by the construction authorities to make corrections within a time limit. Those who fail to make corrections within a time limit shall be fined 10,000 yuan.

　　Article 47 In violation of the second paragraph of Article 37 of these Regulations, the deviation rates of pricing and estimating reports exceed 5% of those calculated at pricing and estimating standards and contract pricing and estimating principles, the construction authorities shall order corrections and fine those who compile the pricing and estimating reports based on the following standards. The person chiefly in charge and the person directly responsible shall be fined not less than 3,000 yuan but not more than 5,000 yuan:

　　1. A fine of 50,000 yuan shall be imposed if the deviation rate is more than 5% but less than 10%;

　　2. A fine of 80,000 yuan shall be imposed if the deviation rate is more than 10% but less than 15%;

　　3. A fine of 100,000 yuan shall be imposed if the deviation rate is more than 15%.

　　Article 48 Those who violate Articles 38.3 and 39.4 of these Regulations and are found to deliberately lower or raise the costs in pricing and estimating reports by review, whose deviation rates exceed 5% of those calculated at pricing and estimating standards and contract pricing and estimating principles shall be ordered by the construction authorities to make corrections. Those who compile the pricing and estimating reports shall be fined 100,000 yuan. The person chiefly in charge and the person directly responsible shall be fined not less than 5,000 but not more than 10,000 yuan. Where crimes are constituted, their criminal liabilities shall be investigated according to the law.

　　Where the development party instructs the party that compiles pricing and estimating reports or a pricing and estimating practitioner to lower or raise construction costs, the development party shall be fined 100,000 yuan.

　　Article 49 Those who violate Articles 38.4 and 39.5 of these Regulations and are found to issue or sign false pricing and estimating reports by means of fictitious increase of quantities, fictitious projects or dual contract shall be ordered by the construction authorities to make corrections. Those who compile the pricing and estimating reports shall be fined 100,000 yuan. The person chiefly in charge and the person directly responsible shall be fined not less than 5,000 but not more than 10,000 yuan. Where crimes are constituted, their criminal liabilities shall be investigated according to the law.

　　Where the development party instructs the party that compiles pricing and estimating reports or a cost practitioner to issue or sign a false pricing and estimating report, the development party shall be fined 100,000 yuan.

　　Article 50 All parties who violate laws, regulations and these Regulations, in addition to punishment according to the law, shall have their bad acts recorded and published by the construction authorities.

　　For those who shall have their practice qualifications canceled, the municipal construction authorities shall transfer their cases to the authorities that register their practice qualifications.

　　Chapter VII Supplementary Provisions

　　Article 51 Projects invested by state-owned funds as mentioned in these Regulations include government-invested projects and projects on non-financial state-owned funds. Government-invested projects refer to construction projects on fixed assets completed with funds from the municipal budget, other financial funds or public resources financing. Projects on non-financial state-owned funds refer to construction projects controlled or dominated by state-owned enterprises with self-raised funds.

　　Article 52 Less than as mentioned in these Regulations shall include the base values, while more than shall not.

　　Article 53 These Regulations shall enter into force as of July 1, 2012.