Notice on Forwarding "Notice of Provincial Department of construction on prevention and resolution of abnormal fluctuation risk of building materials price"

Relevant units:

We hereby forward the document of Zhejiang Provincial Department of housing and urban rural development "Notice of Zhejiang Provincial Department of construction on prevention and resolution of abnormal fluctuation risk of building materials prices" (zjf (2021) No. 33). Please implement it carefully and put forward the following guiding opinions on relevant matters in combination with the actual situation of our city:

1、 When preparing the estimate and preliminary design estimate in the early stage of the project, the construction unit shall urge the preparation unit to fully consider the price risk caused by material fluctuation in the preparation cost and incorporate it into the total investment.

2、 When preparing the bidding documents, the bid inviting party and the bidding agency shall, according to the actual situation of the proposed project, follow the guidance on Further Strengthening the dynamic management of market factor prices of construction projects in Hangzhou (hjsf [2018] No. 579), In the contract conditions and format of the bidding documents, the risk range of the price of building materials and the price adjustment method, price difference payment method and payment proportion adopted in addition to the risk range shall be specified, so as to avoid unilateral restriction on the risk of materials, adjust the type of varieties, and actively prevent the price risk caused by the large-scale and multi-directional abnormal fluctuation of the market price of materials.

3、 When preparing the bidding control price, the bidder should integrate the factors of material fluctuation, and adjust the bidding control price of the proposed project in time according to the price information of market changes when the market price fluctuates greatly.

4、 In the process of bidding and quotation, the construction unit should consider the factors of material price fluctuation and its own risk range, and consider the corresponding risks when determining the comprehensive unit price of list items, so as to make rational quotation.

5、 In the process of signing the contract, the employer and the Contractor shall, in combination with the actual characteristics of the project and in accordance with the corresponding provisions in the bidding documents, clarify the adjustment mode of the contract price caused by the fluctuation of the material price.

6、 For the project under construction that has completed the bidding or signed the contract, if the price adjustment mode of market factors is not stipulated in the contract, or the original agreed adjustment scope and price adjustment method are obviously unfair, which affects the normal implementation of the follow-up project, Party A and Party B shall, after reaching an agreement through consultation, abide by the principle of good faith and fairness, A supplementary agreement can be signed in accordance with the relevant contents of the guiding opinions on Further Strengthening the dynamic management of market factor prices of construction projects in Hangzhou (hjsf [2018] No. 579). In order to alleviate the financial pressure of the contractor, for the construction projects with large scale, long construction period and high contract amount, if the employer and the contractor agree to adopt the method of calculating the price adjustment according to the time schedule section or the project image part (target) section, they can negotiate to pay the material difference adjustment part as the project progress payment when the project progress payment is paid, and sign a supplementary agreement.

7、 The competent construction departments of all districts and counties (cities) shall strengthen the prevention and control and supervision of the price risk of the projects under their jurisdiction, take effective measures to resolve the contract disputes in time, and effectively promote the smooth implementation of the construction projects.

Annex: Notice of Provincial Department of construction on prevention and resolution of abnormal fluctuation risk of building materials price (ZJJ [2021] No.33)

Hangzhou Urban Rural Development Commission

July 8, 2021