New Basis for Cost Verification of Architectural Design Services

2017-02-14 1416 0人评论
      Last December, the official website of the Ministry of Housing and Urban-Rural Development issued the "Notice on Abolishing the Labor Quota for Civil Building Design (2000 Edition)," officially abolishing the "Labor Quota for Civil Building Design (2000 Edition)," and stating that "relevant associations may formulate corresponding labor quotas for architectural design according to actual needs." So how should architectural design costs be calculated, and where is the basis for charging fees? Recently, the China Exploration and Design Association provided an answer. In document "Zhong She Xie Zi [2016] No. 89," it reported the statistical analysis of cost element information for architectural design services, including information on the direct labor costs of engineering and technical personnel at different levels in architectural design services and information on the basic design service costs (including taxes) corresponding to different amounts of construction and installation costs, thereby providing a new basis for verifying the costs of architectural design services.

According to the report, the statistical analysis of cost element information for architectural design services was organized and carried out by the Architectural Design Branch of the China Exploration and Design Association. It surveyed, compiled statistics on, measured, and analyzed information on cost elements of architectural design services from more than 100 architectural design institutions nationwide for the three years from 2013 to 2015. At the same time, industry experts were organized to summarize, analyze, and categorize the large amount of collected data and information. After multiple rounds of discussion and verification, two types of cost element information for architectural design services were ultimately formed. One type is information on the direct labor costs of engineering and technical personnel at different levels in architectural design services; the other is information on the basic design service costs (including taxes) corresponding to different amounts of construction and installation costs.

    It is reported that in the future the China Exploration and Design Association will continue to carry out investigation, statistics, and analysis of cost elements of architectural design services and will issue relevant information reports from time to time, so as to reflect the current cost situation of the architectural design market and provide information support for maintaining market order in architectural design, opposing unfair competition, and ensuring the quality of engineering design.

    Previously, in order to further streamline administration and delegate power and advance the transformation of functions, the National Development and Reform Commission issued the "Notice on Issues Concerning the Liberalization of Charging Standards for Some Construction Project Services" on July 10, 2014, requiring that "the charging standards for four services, namely pre-project work consulting, engineering survey and design, bidding agency, and engineering supervision for construction projects other than government-invested projects and government-commissioned services, be liberalized and subject to market-regulated prices." Not long afterward, on February 11, 2015, the NDRC issued another notice, the "Notice on Further Liberalizing the Prices of Professional Services for Construction Projects," further clarifying that, on the basis of having already liberalized the prices of professional services for construction projects not invested by the government or commissioned by the government, the prices of five services, namely pre-project work consulting fees, engineering survey and design fees, bidding agency fees, engineering supervision fees, and environmental impact consulting fees, would be subject to market-regulated prices. This notice also meant the abolition of charging standards in the architectural design industry. Insightful people in the industry pointed out that, against the background of the state's continuous liberalization of the design industry market and the liberalization of the state pricing mechanism, this also heralds the arrival of a "parity era" for design. With the cancellation of the price protection system, competition in the design market will intensify, and industry associations will play a greater role. For example, this report by the China Exploration and Design Association precisely provides a new basis for verifying the costs of architectural design services in the future.

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