PPE

The latest news” “Winning the bid at the lowest price” may come to an end and give conscience enterprises a way to survive

1n recent years, the news of “bankruptcy”, “shutdown”, “bankruptcy”, “wage arrears”, “declining performance” and “loss” of enterprises in various industries has shaken people’s hearts. Due to the serious overcapacity in China, many enterprises either have no business or rely on low profits to survive

in addition to the external environment, the internal vicious competition is also engulfing the manufacturing industry. 1n order to maintain customers and ensure that there is business to do, some enterprises do not hesitate to sell their goods in a “break even” manner, increasing the risk of more small and medium-sized factories closing down

winning the bid at a low price is really starving, tiring and killing Party A! Especially in the environmental protection industry, are other industries the same? 1t’s worth thinking about

low price competition cases

now it seems that “low price competition” is more terrible than “bankruptcy tide”” How low the price of business are people to do! “

competitor a company began to take the relationship route, and the preference of the owner’s senior management was very close. Competitor B company issued a tough word, no matter how far the owner’s bargaining goes, the job will be taken. We have cooperated with the owner in three or four projects. When a project is just started, it should be said that the tea is still hot, and there is a great chance of chatting and laughing. Because the project is still in operation for the time being, the quotation is in accordance with the normal steps. 1n the shallow water, some food money is added as appropriate. 1t can be said that the quoted price looks completely normal at ordinary times

as a result, in the first round of price comparison, the price of company B is 70% of ours. My colleagues are a little surprised. The price of company B is almost the same as ours, sometimes a little higher. 1 went to B’s friend to ask. 1t turns out that a lot of B people are in over head. 1f there is no more project, there will be layoffs, so B decided to fight back and give up

in the second round of negotiation, our company directly reduced to the price before B. Because the senior management said that regular customers can’t be lost. Recently, company B won the bid. Reliable information from the owner revealed that the final bid price of company B was about 50% of our first quotation

what is this concept

1 want to say to my dear customers:

the style of life lies in your taste,

the quality of products lies in your choice

only choose the right one, time will prove your rationality and foresight

it’s very expensive. Yes, it’s expensive because it’s good

quality is the key to products and taste is the key to people

the premise of service is profit,

profit space can be squeezed,

but it can’t disappear,

otherwise, service will disappear with profit

please don’t ask too much,

every company has to survive,

you take away the living space of the manufacturer,

how to guarantee the service and quality

to be an enterprise is to be conscientious,

we would rather explain the price for a while,

than apologize to customers for their quality for a lifetime

the value of Chinese enterprises should be upgraded

the mechanism of minimum bidding price must be reformed

background of bidding

bidding, as an important way of transaction, is widely used in China. While producing positive results, there are also some problems to be solved in bidding, 1n particular, the misuse and abuse of the method of winning the bid at the lowest price seriously disturbs the market, hinders fair competition, reduces product quality, and eventually leads to the situation of the good quitting and the bad coming, which goes against the original intention and desire of “high quality and good price” and “supply side reform” proposed by the national quality power, brand rejuvenation and the 13th five year plan

the wrong use of the lowest price bidding method has led to vicious price competition among bidders, prompting some bidders to offer lower than the cost in order to win the bid. After winning the bid, they make up for their losses by cutting corners and claiming at a high price, and some even threaten the bid inviting party to increase the cost by means of shutdown and delayed completion, so as to obtain additional profits, These practices will bring huge hidden dangers to the product quality, engineering quality, service quality, safety production and construction schedule in the performance of the contract, and also cause a lot of economic contradictions. The continuous occurrence of disputes such as arrears of workers’ wages and contract price will affect social stability

especially for the manufacturing and construction industries, the wrong use of the lowest price bidding method will have a profound negative impact. Due to the malicious price competition, the bidders can not win the bid under the normal quotation, which makes some large-scale standardized enterprises lose the trading opportunities, or the low price bidding is unprofitable, so they have to cut down the capital investment in technical equipment and product research and development, resulting in the lack of development stamina and the inability to improve their innovation ability. 1n terms of employment, in order to reduce the cost, the enterprise will reduce the employment standard, reduce the investment in staff education and training, affect the improvement of staff quality, and finally make the enterprise development stagnate. The industry will fall into the mire of vicious competition, cancerous market order, and unsustainable economic and social development< The article 41 of the bidding law of the people's Republic of China stipulates that "the bid of the successful bidder shall meet one of the following conditions: it can meet all the comprehensive evaluation standards specified in the bidding documents to the maximum extent; 1t can meet the substantive requirements of the bidding documents, and the evaluated bid price is the lowest; Except that the tender price is lower than the cost. " in addition, Article 29 of the 1nterim Provisions on bid evaluation committee and bid evaluation methods also clearly stipulates that “bid evaluation methods include the lowest evaluated bid price method, comprehensive evaluation method or other bid evaluation methods permitted by laws and administrative regulations.” Therefore, the bid evaluation methods adopted in China at this stage are mainly divided into two categories: comprehensive evaluation method and the lowest evaluated bid price method< However, laws and regulations at the national level do not clearly define the scope of application and preconditions of "the lowest evaluated bid price method", nor do they define the specific circumstances and standards of "the bid price is lower than the cost", which leads to the fact that most of the bidding projects that should be subject to comprehensive evaluation of technology, commerce and price, in order to achieve the maximum capital saving rate, 1t reflects the political achievements of leaders, misuses and abuses the method of winning the bid at the lowest price. When it is applied, it deliberately ignores the condition of "meeting the substantive requirements of the bidding documents" and takes the low price as the standard to measure the performance ability of all bidders. Once it is found that the bidder's quotation is too low, it does not start the price identification procedure, and turns a blind eye to the phenomenon of "the bidding price is lower than the cost", 1t results in a large number of low price bidding, leading to vicious competition of bidders regardless of cost normal price is a kind of respect for others’ innovation and labor, but also for themselves. The abnormal price reflects the abnormal relationship between supply and demand, the legal environment and the lack of credit. The intention of winning the bid at the lowest price seems to be good, but it gradually erodes the soil for China’s manufacturing industry to pursue quality, have the courage to innovate and form an appropriate industry concentration. 1t also makes the government and enterprises use it as a talisman of nominal compliance, regardless of the possibility of actual performance and the corresponding consequences. Today, China’s economic growth is gradually declining and all industries are shrinking, There is no lowest price, only lower opinions and suggestions of the two sessions on bidding establish and improve laws and regulations “cancel product bidding, adopt the” evaluated lowest bidding price method “, and recommend the” evaluated average bidding price method “, in which the score of technology, service and brand accounts for no less than 50% form the industry cost price system to prevent malicious low price bidding for the industry with obvious malicious low price bidding, according to the current market situation, combined with the relevant government documents and the experience of relevant experts, the government or industry organizations should set the bidding cost guidance price, and strictly stipulate that the bidding price should be removed after the lowest price and the highest price, 1f it is still lower than a certain proportion of the average bid price, it shall be regarded as lower than the cost price, which shall be used as the basis for price evaluation of the whole bidding project< At present, due to the imbalance between supply and demand and the general serious overcapacity, we should strictly control the market access and improve the market clearing mechanism in the bidding process. For the bidders who have affiliated bidding, illegal subcontracting, illegal subcontracting, collusive bidding, false bidding, fraud and other behaviors, As for the bidders who have had serious quality and safety accidents, bid dishonesty, performance dishonesty, and bribery, as well as the testing institutions and personnel who violate the law and regulations, they should be seriously dealt with according to law, and restricted from entering the bidding market and supervision field. At the same time, it is suggested that those units with good qualifications and good reputation should be given priority support, So as to promote the healthy development of the industry, the healthy development of society, and realize the great Chinese dream

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