Nonstandard phenomena and Countermeasures in the c

  • Detail

From planned economy to market-oriented reform, from fund-raising to the separation of main and auxiliary power, from "big work and fast progress", "land occupation" to "sudden braking" and "braking" of coal-fired power construction projects, power construction and thermal power construction enterprises have created the glory of China's thermal power installed capacity of more than 1billion kW, and also suffered from the "labor pains" caused by the reduction of coal-fired power capacity. According to the "Research Report on the operation of power construction enterprises" of China Power Council, under the "new normal" of power construction, the total profit and operating income profit margin of the thermal power sector of the two power construction groups in 2016 were "double lower" than that in 2015, and the asset liability ratio and the completed and outstanding project funds were "double higher". The current market situation, such as the high level of "two funds", non-standard bidding behavior, unequal contract terms, and difficult settlement of completed projects, has made thermal power construction enterprises, which should have shared the reform dividends, walk on the edge of the downturn and become vulnerable groups in the industry. The reason is that the industry lacks a clear market supervision department and the division of supervision functions is unclear

during the "13th five year plan" period, China's economy entered the "new normal", the fixed asset investment in the traditional power generation industry decreased sharply, and the market scale gradually shrank. In 2016, the total profit of thermal power sector of power construction enterprises decreased from 1.043 billion yuan in 2015 to 697 million yuan, and the profit margin of operating revenue decreased by 0.79 percentage points compared with 2015. Nearly half of thermal power construction enterprises lost money, and the survival and business environment further deteriorated. It is predicted that during the "13th five year plan" period, the main business income and profits of power construction enterprises will be significantly reduced, and the survival of some enterprises will be challenged. During the "13th five year plan" period, the operating revenue of thermal power construction projects alone will be reduced by 67 billion yuan, and the total profit will be reduced by more than 1.6 billion yuan. The whole industry is facing a "cold winter" of production and operation

there are four major problems in the power supply construction market

as the primary link and important factor of power production, power infrastructure construction has laid a solid foundation for China's power development. Before 1998, the Ministry of electric power, as the administrative department of the power industry, played the role of government management at the same time, and the thermal power construction market was relatively standardized. In 2002, the country launched the first round of power system reform. With the "separation of power plants", the power construction market initially took shape, and the market competition became more and more obvious. Although there was no clear regulatory mechanism at that time, there was an unimpeded dialogue channel between power construction enterprises and power generation enterprises, which promoted the rapid improvement of power construction management and control capacity, and formed a strong thermal power construction capacity. With the rapid development of China's economy, the demand for electricity has soared, the large-scale development of major power generation groups, and the number and total capacity of power generation construction projects have surged. At the same time, the past industry management has been gradually replaced by enterprises' self-management, and many bad market conditions and competition "bad habits" have also bred and spread in the dead corner of market supervision

bidding is not standardized, and "winning the bid at the lowest price" disturbs the market order. On the one hand, it is undeniable that in the context of supply side structural reform, domestic thermal power construction capacity is significantly surplus, and some enterprises have a great survival crisis. In this environment, thermal power construction enterprises are forced by the pressure of survival to bid at a price significantly lower than the industry's "average cost price", and the bid evaluation institutions of some projects also let it go. Coupled with the absence of supervision, the bid evaluation mechanism is not scientific enough, and there are defects, resulting in the frequent occurrence of "low price bid winning". On the other hand, from the second half of 2014 to the first half of 2015, the game between power construction enterprises and project owners is obvious. If the owner does not recognize the "zero profit" quotation of power construction enterprises, generally sets an opaque "blocking price" lower than the average actual cost, and carries out "competitive negotiation" with thermal power construction enterprises in the way of "back-to-back" and "breaking one by one" to achieve the purpose of reducing the price, it will adapt to the violation clause of "providing different project information to potential bidders or bidders for the same bidding project" in the bidding law. Especially in the current context of reducing coal and electricity production capacity, this kind of "winning the bid at the lowest price" and violations below the cost will lead thermal power construction enterprises to fall into the dilemma of "not making ends meet" and "sitting on empty"

in fact, the Ministry of housing and urban rural development and other departments have issued a number of relevant documents to regulate the bidding behavior, but the lack of regulatory functions and unclear regulatory scope have led to the proliferation of market irregularities, including the bid bond and quality bond set irregularly. In recent years, the amount of the project security has soared, and there are many names. The amount of the bid security of extreme cases for a single bid section has exceeded 20million yuan. The phenomena of arbitrary setting of deposit collection standards and untimely return have occurred frequently, which have seriously endangered the normal production and operation of thermal power construction enterprises

the contract terms are not standardized, and the increased costs caused by engineering changes cannot be compensated. With the improvement of standards due to the depth of engineering design, changes in design and materials are common in the construction process, but the increased costs are often not recognized and compensated. The occurrence of these phenomena is closely related to the non-standard and inequality of contract terms. Although the Ministry of housing and urban rural development and other nine ministries and commissions have issued the model text of the construction project contract, they have very detailed standards and management methods for the valuation specifications of the bill of quantities of construction projects. However, such national standards and regulations have not been implemented in the thermal power construction market, or have been "ignored" by the bid inviter, or special terms have been skillfully established in a variety of ways. The practice of setting the contract unit price and single column lump sum cost as a fixed price is not adjusted due to market, environment, policy changes or any other factors, and the operation and management risks are transferred to the construction enterprise in the form of "total price contracting", It increases the cost of construction enterprises and hidden dangers of safety production. On the one hand, the construction period, cost and quality are all important contract elements, but the cost increasing measures such as the delay of the construction period and the creation of high-quality projects are often not linked to the cost, and the cost of more investment cannot be recognized and compensated; On the other hand, there are differences between the physical quantities in the bidding documents and those in the design drawings, including the fluctuation of material prices throughout the construction period, that is, the so-called quantity difference and price difference, are not recognized accordingly. In the long run, power construction enterprises can not get the corresponding cost compensation, and loss performance projects are not conducive to the sound development of power construction enterprises

the "FIDIC clause" currently prevailing internationally is actually set to balance the relationship between Party A and Party B, reflecting the principle of sharing risks. At present, the contract terms in China's power construction market are set by Party A, and the price adjustment space is locked, so the objectivity, impartiality and scientificity of the contract cannot be reflected. The reason why commercial prices cannot be adjusted objectively is the lack of corresponding market rules and effective supervision, resulting in weak legal awareness in the bidding process

the implementation of advance payment for the project is not standardized, which makes it more difficult to start the project. In the period of relatively good market environment, the advance payment of the project is relatively standardized, and there is no problem of deduction or payment lag. However, with the increasingly passive market position of power construction enterprises in recent years, the advance payment for projects has shown a shrinking trend, and even "zero" advance payment or advance payment has appeared in the projects undertaken by some private enterprises. Even if the advance payment is collected in full in previous years, it is difficult to meet the capital needs for early preparation. In such a harsh environment, construction enterprises can only solve the working capital through bank loans, which increases the financial cost of construction enterprises. Bearing the expanding project costs and construction risks, and suffering from the double squeeze of deposit increase and advance payment deduction, has become another major problem commonly faced by power construction enterprises at present

based on the audit results, the settlement cycle is prolonged and the benefit recovery of power construction enterprises is delayed. After the completion of the project, many projects cannot be settled in time, some even for several years. It has become normal to delay the completion settlement for half a year to one year. On the one hand, due to the owner's oral commitment to the change during the construction period without issuing written changes or entrusted materials, although some changes are clearly left to be solved during the project settlement, with the extension of the settlement cycle, the uncertainty of the cost claim increases, and the phenomenon of buck passing often occurs, resulting in the very difficult process of the change claim quantity visa. On the other hand, there are also great differences between the power construction enterprises and the owner in the understanding of labor cost adjustment, material price difference, expediting fee, high quality and good price, off contract engineering quantity difference, project budget quota standard and so on. The transfer of financial operation risks also often occurs, which is also an important reason for the settlement difficulties of both parties

the original intention of project audit is to ensure the authenticity and compliance of the completed project cost, and safeguard the interests of the country and all market entities of the project and market fairness. However, at present, the audit fees of some audit units are often linked to the amount of reduction. Unfair practices often occur in the third-party audit process entrusted by the owner unilaterally, such as increasing the number of audits at will, extending the audit cycle, and even requiring the amount of reduction to reach the predetermined value. The complex tripartite relationship among the owner, the construction enterprise and the audit unit is also an important link in the generation of non-standard and corrupt behaviors, resulting in the repeated extension of the project completion settlement cycle. During this period, the capital investment can only be raised by the construction enterprise itself. The lagging benefit recovery objectively increases the operating costs of the construction enterprise. These are also non-standard phenomena in the power engineering construction market

the power construction industry urgently needs to improve supervision

under the background of the current suspension of coal-fired power projects, it is particularly important to strengthen the market supervision of traditional construction projects in the thermal power sector. "Winning the bid at the lowest price" is not only a "bad habit" in the power construction market, but also exists in municipal, highway and even livelihood projects. The bidding method of "winning the bid at the lowest price" will not only easily lead to the "survival of the inferior", disrupt the market order and reduce the enthusiasm of enterprises for innovation and development, but also bury hidden dangers of safety and quality, causing more serious consequences, causing all kinds of harm but no benefit

at present, in order to alleviate overcapacity in the power construction industry, the state has put forward the "going out" strategy and the "the Belt and Road" initiative, creating a broader market space for China's power construction enterprises. While some enterprises are "going out", they inevitably bring "bad habits" overseas. Vicious competition not only gives way to the interests of other countries, making them reap the benefits of fishing, but also increases the risk of "going out" of Chinese enterprises, and even undermines the national image

there is no awe without rules. There are many irregularities in the power construction market, which reflects the absence of market regulation and rules from another side. The electric power construction market urgently needs to implement the development strategy of efficient and green plastic granulator, and the supervision should be improved. The industry supervision organization of the electric power construction market should be clarified or established as soon as possible, and its supervision responsibilities in all links of the market, such as bidding, contract signing, project settlement and so on, should be clarified; In accordance with the relevant national laws and regulations, formulate and improve the relevant industry supervision rules and regulations such as the management measures for power construction bidding, carry out the supervision and management of market behaviors such as bidding and project settlement, standardize the self-discipline behavior of all parties in the market, coordinate and solve the market disputes in the process of bidding and contract performance, and ensure the power construction bank

Copyright © 2011 JIN SHI