How to set the minimum price limit in construction contracts

We will inform you that the method of setting the minimum price limit in the contract contract for the construction ordered by Inagi City has been revised as follows.
It will be applied from April 1, 2022 onwards for construction that will be notified of tender announcements or nominations.

(1) A construction contract with an estimated price of 10 million yen or more, for which general competitive bidding is conducted.
(2) Construction contracts with an estimated price of more than 1,300,000 yen and less than 10,000,000 yen, with designated competitive bidding.

The standard amount is calculated based on the direct construction cost, common temporary construction cost, site management cost and general management cost, which are the basis for calculating the planned price.

Calculation formula (before revision)
(Base amount) = {(direct construction cost) x 0.97 + (common temporary construction cost) x 0.9 + (site management cost) x 0.9 + (general management cost) x 0.55} x consumption tax rate

Calculation formula (after revision)
(Base amount) = {(direct construction cost) x 0.97 + (common temporary construction cost) x 0.9 + (site management cost) x 0.9 + (general management cost) x 0.68 } x consumption tax rate

If the base amount calculated by the above formula is within the range of 9.2/10 to 7.5/10 of the scheduled price, the base amount will be the minimum limit price.
However, the calculated standard amount is
If it exceeds 9.2/10 of the scheduled price: (minimum limit price) = (scheduled price) x 9.2/10
If it is less than 7.5/10 of the planned price: (minimum limit price) = (planned price) x 7.5/10.

Note: The minimum price limit is not announced at all before bidding.
Note: We will not disclose the breakdown of the design cost, regardless of whether it is before or after the bidding.