Trillion Market Capitalization is Not a Dream

Chapter 24: 40% monthly progress payment

It took a hundred years to hear this price, and sweat came out. After it dropped by as much as 15%, the company's profit was very thin, so he quickly replied: "Well, Manager Cui, I think the pricing model you are talking about, There is no problem. But in the case of the pricing principle you mentioned, if it drops by 15%, our company is regarded as an ordinary construction company. During the construction process, our company will arrange a special art team to enter the construction site. , to create art. There is no separate charge for this, the purpose is to ensure the artistic effect and the company's brand effect. Of course, doing so will naturally make our company's actual construction cost higher than other construction companies. Some. It’s not that the cost is much higher because of the increase in the number of art team members. The key point is that in the process of art personnel checking, many adjustment methods are not necessarily understood by the construction party. The effect will still be implemented by the project department. These methods that have not been confirmed at the time will also generate some construction costs, and these extra construction costs are also borne by our western construction companies. Therefore, compared with other units, in In terms of the quality of municipal parks and construction, and artistic control, we still have some differences. We are a small group of companies that are in the forefront of the industry. In this case, we will generally go down by about a point. It is equivalent to a symbolic floating. However, the effects and quality we have produced are all first-class and high-end. In addition, we have a very strong organization and implementation ability in terms of job hunting.”

Cui Kai replied: "Well, if we need to rush the work, we will negotiate separately. Now we are constructing under normal conditions, and let's talk about the percentage point drop in the project cost calculated according to the standard. Well, your 1% drop rate is indeed true. It’s too low. This one, the gap between the two of us is too big, everyone should think about it, then exchange the following terms, and finally discuss this.”

Hua Baibai replied: "I agree with Manager Cui's opinion. This one will be delayed for a while, and then I will talk about other things first, and finally this one."

Cui Kai said: "Let's talk about the progress payment part. First, the design progress payment. After the construction drawing design is completed, 50% will be paid, and the remaining 50% will be paid after the completion acceptance."

Hua Baibai replied: "The payment of the design progress payment, such payment terms are a bit difficult for our company. I will report to the three leaders, our company's regular design payment terms. We will seek from both parties. The balance point of acceptance. The routine is to pay 30% of the advance payment within 10 working days after the design contract is signed, 50% of the design fee will be paid for the approval of the scheme design drawing, and 90% of the design fee will be paid for the approval of the construction drawing. 100% of the design fee will be paid later.”

Cui Kai replied: "There is no advance payment, 20% will be paid after the scheme design is successful, 50% of the design fee will be paid after the construction drawing design is successful, and 70% of the design fee will be paid when the construction progress reaches 50%, and the payment will be made after the completion acceptance. to 100% of the design fee.”

It takes a hundred years to arrive: "Manager Cui, the advance payment for the design fee must be given. Colleagues in the design institute, each project is accounted for separately, and the cost is used separately. If there is no advance payment, it will lead to Design colleagues have to pay for their travel expenses, which will seriously affect the enthusiasm of the design team to travel, and it is also very detrimental to the progress of our project design.”

After listening to Hua Baibai's explanation, Cui Kai pondered for a while and said, "There is such a situation in the design institutes in other places, and I didn't consider it before. Well, I suggest that you can give a 10% advance payment on the design fee. President Li, do you think it suits you?"

Li Changan thought for a while and replied, "I think the request for advance payment for the design fee is reasonable, so I will consider it as 10% for the time being."

After listening to Li Changan's reply, Cui Kai continued: "Then it is now 10% of the advance payment, 30% of the design fee will be paid after the scheme design is successful, 50% of the design fee will be paid after the construction drawing design is successful, and the construction progress will reach 50%. %, then pay the design fee to 70%, and pay 100% of the design fee after the completion and acceptance.

Hua Baidao said: "Cancel the design fee payment in the middle of the progress, and reduce the one-time payment. 10% in advance, 40% when the plan is completed, 90% when the construction drawing design is completed, and 100% when the completion acceptance is completed."

Li Changan said: "Agree to reduce the one-time payment. 10% in advance, 35% for the plan, 85% for the construction drawing design, and 100% for the completion acceptance."

Hua Baibai replied, "I have no disagreement with this method of payment for the design fee that Mr. Li decided on."

Cui Kai said: "The second progress payment is the payment of the construction progress payment of the municipal park construction project. There is no advance payment, 70% will be paid after the project is completed, and 80% of the settlement amount will be paid after the settlement audit is completed, and it will be completed within one year. 90% of the settlement amount will be paid later, and 10% of the warranty will be retained.”

Hua Baibai took a few deep breaths and said slowly: "This payment term is equivalent to a full advance. Manager Cui, can you introduce your payment method with better payment terms?"

Cui Kai said: "We usually do house construction, and it is a routine to pay the project payment after the roof is capped. I think the payment terms of the Municipal Park are exactly matched. Then, could you also introduce your company's payment terms for the progress payment of the project?"

Hua Baibai replied: "Okay. I will report to the leaders the payment terms of the construction contract established by Western Construction and Fangkai Company. The advance payment is 10%, and the monthly payment is 70% of the completed output value. After the completion, the cumulative completed output value will be paid. 85% of the settlement amount, 97% of the settlement amount after the settlement is completed, and 100% of the settlement amount after the expiration of the warranty period.”

Cui Kai said: "Our company absolutely prohibits the payment of advance payment in the project payment. Please understand and support Hua Zong. According to the situation you introduced, I suggest a payment method: no advance payment, monthly payment is completed. 40% of the output value, 65% of the accumulated output value after completion, 80% of the settlement amount after settlement, 90% of the settlement amount after one year of completion, and 100% of the settlement amount after the expiration of the warranty period ."

Hua Baibai said: "Without advance payment, 40% of the monthly progress payment is too little, at least 75% of the monthly progress should be paid."

Cui Kai said, "No, 65%."

Hua Hundred Years said: "70%"

Cui Kai said: "Now there is no advance payment, 70% of the monthly progress, 80% of the settlement, 90% after one year of completion, and 100% when the warranty expires."

Hua Baibai said: "Manager Cui must pay a sum of money after the completion of the project, otherwise the payment will not be returned in time, and it will be difficult for our construction unit to deal with the issue of migrant workers' wages. How about paying 85% of the completion?"

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