Great Power Project

Chapter 406 Concession Doesn't Mean Suffering
"District Chief, before the construction drawings are released, it would be obviously unfair to us if the budget of 20 billion you made before was paid for the tourism road project!

This is not in line with the fair and equitable principle of contract law.

However, if you follow the budget of CITIC Investment Bank, obviously some of you think it is unreasonable, and it is a sky-high asking price!

Therefore, my opinion is that we can accept this project, but we cannot do it according to the previous budget!
Our district government organizes and entrusts the design unit to design the tourist road, and then make a budget according to the design drawings!We are responsible for the investment, including bearing the design costs, and we are also responsible for the general contracting of the construction, but the construction costs must be settled according to the facts! "Yu Qingyang didn't make too much of a decision, so he stopped a little bit.

"According to actual settlement? How to control the cost?"

"Your district government can set up a management department to manage the safety, quality, cost, and progress of the entire project!" Yu Qingyang laughed.

Originally, both the FEPC model and the BT model belonged to the turnkey contracting model.

Both are government or social institutions, responsible for project initiation and approval, and then investors are responsible for financing, design, construction, etc., and finally handed over to the project sponsor after completion.

That is to say, the safety, quality, cost, and progress of this project are all managed by the investor, and government agencies or social organizations are only responsible for the final acceptance of the project. Now Yu Qingyang has handed over the project management right, and the concession is not small !

Even District Chief Wang was a little surprised. Originally, District Chief Wang had already made up his mind and agreed to some of Yu Qingyang's not-too-excessive demands. Unexpectedly, not only did Yu Qingyang not make any excessive demands, but instead made a huge concession.

As mentioned before, an engineering project can be divided into three stages, decision-making stage, implementation stage, and use stage.

According to the FEPC model and BT model, their district government is only responsible for the decision-making stage and the use stage, and the implementation stage is all in charge of Huayu Investment of Yu Qingyang.

The design of construction drawings belongs to the content of the implementation stage, including the safety, quality, cost, and progress management of engineering construction, which also belong to the content of the implementation stage. Now Yu Qingyang has given up all of them.

The district government naturally welcomes the ability to control the safety, quality, cost, and progress of the project by itself. As for the actual settlement proposed by Yu Qingyang, is this a condition?Certainly not, this is a reasonable request!

Don't think that Yu Qingyang will suffer a loss if Hua Yu invests.

There is a deep routine in this, that is, to settle accounts according to facts.

According to the actual settlement, everyone who works in engineering, especially those engaged in settlement, knows that this is a very good condition.

According to the actual settlement, how much money can be settled in the end is a test of the commercial ability of the construction company.

Maybe for a project with a budget of 20 billion, you can only settle [-] billion in the end, or even lower.

However, it is also possible to settle more than 30 billion.

Settlement according to the facts, as long as you can provide proof materials to prove that you have done the job, you can settle the settlement.

The author once worked on a foundation excavation project.

The budget was 100 million. At that time, it was estimated that this project would not make money, or even lose money.

But because the owner is the higher-level supervisory unit, if the boss speaks out, he will do it even if he loses money.

There is a clause in the contract that is to settle according to the facts. In the end, the settlement amount of the project was more than 960 million.

How did it work?That is, you have to do a good job in public relations.

The public relations here is not about how many gifts you give, but that you have to find a way to let the owner follow your thinking.

Adding many construction contents that were not in the original drawings made the owner think that adding these construction contents was necessary.

Then apply for a visa, or change the drawing.

Taking the greening on both sides of the tourist road as an example, ordinary seedlings can be used, or precious seedlings can be used, but the final cost of the two kinds of seedlings is very different.

There is also mountain support, which can be sprayed anchor cable support, and can also be used as anchor cable retaining wall slope protection, anchor lagging structure slope protection, and the cost varies greatly.

"Xiao Yu, do you have any other requests?"

"Other requirements? I hope that our company's construction project consulting company will undertake the construction management task of the entire project, and then our government will transfer relevant personnel to the Tourism Road Construction Management Project Department, and we will jointly manage it!"

"There is no problem with this. We can set up a joint project management project department to jointly manage the tourism road project!" District Chief Wang readily agreed.

"Do you need us to help coordinate with the bank?" District Chief Wang asked again.

"Let's get in touch first, if we can't solve it, then ask the leader to come forward to help coordinate!" Yu Qingyang politely declined District Chief Wang's kindness.

Questions about bank loans?
How can it be?

Some time ago, Huayu Investment borrowed 200 billion from HSBC, which was very popular with the four major banks.

Now that Yu Qingyang is looking for a loan of 20 billion from the four major banks, the four major banks must be very happy.

It is not a loan out of thin air, investing in a tourist road project, and the government settles the bill with land, which is a high-quality loan resource.

"That's fine, you guys get in touch first!"

Then Yu Qingyang communicated with District Chief Wang on some details before taking his leave and leaving.

Yu Qingyang and District Chief Wang only reached a consensus on the tourism road project, and the remaining professionals need to further communicate and coordinate on various details before signing the investment contract.

Back at the company, Yu Qingyang called Xue Qin and asked her and Zhao Yunli to come to his office.

"President Xue, Minister Zhao, there are two projects, you can arrange someone to match them!
One is my hometown, Vegetable City, where I plan to build a seafood trading market and a port wharf with ten thousand-ton berths and twenty five-hundred-ton berths.

I have already discussed this project with Secretary Wang of Caidu City last time. I will call Secretary Wang later, and you can follow up with the specific situation! "

"Okay, Mr. Yu, I'll follow up on this project myself!" Zhao Yunli hurriedly agreed.

It is natural to take a positive attitude towards the project of the boss's hometown.

Yu Qingyang glanced at Zhao Yunli, did not speak, and nodded, "Well, you can follow up the Caidu project. Mr. Xue, the DC District Travel Road project has been finalized in the district, let us do it! You arrange someone to follow up one time!"

"Mr. Yu, what are the general conditions in the DC area?"

"It is tentatively decided that the two parties will jointly establish a project management department, and the project will be settled according to the actual situation!

You can talk about the rest! "

"Okay, I got it! I'll arrange for someone to contact the DC district government to discuss the remaining details!"

"Do we have enough money in our account? Do we need a loan?"

"It's enough for now!"

"That's fine!" Yu Qingyang nodded.

The land transfer fees in Beijing, Yangcheng, Pengcheng and Modu cost tens of billions, but that doesn't require a one-time friendship.

You only need to pay in full before you apply for a house pre-sale permit.

In some places, it is even possible to pay in batches and apply for pre-sale licenses in batches.

For example, if you acquire [-] acres of land at one time, you can first pay the transfer fee of [-] acres of it.Apply for the pre-sale permit corresponding to the [-] acres of land.

Then sell the house and pay other transfer fees.

Therefore, after paying the first batch of land transfer fees in the four major first-tier cities, the company still has a small amount of billions in its account.

Some people may question, spring water and Jeju have invested tens of billions, what do you do with this little money?
It needs to be clear that the total investment is tens of billions, but it is not a one-time expenditure.

The construction period of the two places is about three years, so the combined expenditure of more than 200 billion in the two places is divided into three years.

(End of this chapter)