Analysis on the operation of the hottest power con

Analysis of the operation of power construction enterprises

Abstract: the construction of credit system in the power construction industry started early, covering the fields of construction, design, construction, supervision, commissioning and so on, and the measures and effects are relatively significant

since the 13th five year plan, the "new normal" characteristics of power construction have become increasingly prominent, the traditional overcapacity phenomenon has become more prominent, and the competition in the bidding market of power construction has become more intense. It is mainly manifested as follows: first, in recent years, the profit space of power generation enterprises has been continuously compressed, the fixed asset investment in the traditional power generation industry has decreased, and the scale of the power construction market has gradually shrunk; Second, the state has successively introduced macro-control measures such as "reducing coal power construction projects that have been included in planning, approval and construction"; Third, the role of market-oriented mechanism has been continuously strengthened, and power construction enterprises have shown a polarization phenomenon of "stronger enterprises, weaker enterprises", and a large number of small and medium-sized construction enterprises are facing difficulties in production and operation; Fourth, in 2016, major safety accidents with great social impact occurred continuously in power construction projects, which attracted great attention of the Party Central Committee and the State Council, and also revealed deep-seated problems in the power construction industry. The development of electric power construction industry is at a key node, and it is urgent to conduct in-depth research and put forward comprehensive countermeasures

business profile of major power construction enterprises

at present, China's major power construction enterprises include China power construction, China energy construction, China nuclear power construction, Inner Mongolia energy construction, and power construction enterprises such as pumped storage and new energy under the provincial transmission and transformation companies and group companies of the two major power companies. In addition, there are many state-owned or other economic nature of small and medium-sized power set prices are also relatively expensive, such as power construction enterprises, migrant workers subcontracting construction enterprises, etc. According to the main business division, power construction enterprises can be divided into power construction survey and design, construction, supervision, commissioning and equipment manufacturing enterprises

in the past six years, China's major power construction enterprises have continuously deepened the reform of collectivization, internationalization and diversification. Based on the development of the domestic power supply and power construction market, while constantly expanding the non power business and the market space of "going global", the operating revenue of the two major power construction group companies has reached 540billion yuan in 2016

through comprehensive analysis, it is predicted that the market prospect of power construction during the "13th five year plan" period. In the next four years, the market scale of traditional power construction may shrink sharply. In addition to the fact that the investment in hydropower construction has decreased year by year, the investment in coal-fired power construction, which accounts for a large proportion of market investment, will decline sharply, which is the main reason; The construction of new energy sources such as wind power and solar energy will still maintain a certain scale, but it is also shrinking compared with the situation in the past two years. In the face of the shrinking hydropower construction market and the significant reduction in the scale of coal-fired power construction, major hydropower and thermal power survey, design and construction enterprises will face enormous pressure for survival and operation

the development of power construction enterprises is facing six major problems

the construction of traditional power supply intensifies the market shrinkage, and the construction capacity is surplus

with the rapid development of power construction, the scale of power construction enterprises is growing rapidly. Since 2003, in view of the tense situation of power supply, while deepening the reform of the power industry, the power construction has been continuously strengthened with development as the center. The enthusiasm of power group enterprises and relevant investment entities for power investment and construction has been unprecedented, and the scale of power construction and operation has continued to rise to a new level. In order to meet the needs of the power construction market, the construction capacity of technicians, machinery and equipment of power construction enterprises has expanded rapidly since 2002. From 2002 to 2008, although the number of on-the-job employees in thermal power construction enterprises changed little at the end of the year, the proportion of on-site technical and management personnel increased significantly, and the total number and original value of self owned machinery increased by more than 50%. At the same time, the on-site construction team of migrant workers gradually formed and expanded during this period

the market is shrinking year by year, resulting in excess design and construction capacity of thermal power and hydropower. After more than seven years of rapid development from 2004 to 2010, the investment in thermal power construction fell year by year from the highest 227.1 billion yuan in 2005 to about 110 billion yuan in 2011, with a decrease of 50% to about 110 billion yuan. After the scale of thermal power construction market fell by half, thermal power design and construction enterprises showed polarization. When the investment is halved and the scale of the corresponding market projects is halved, the scale capacity of thermal power design and construction enterprises is obviously surplus, and the market competition is becoming increasingly fierce and even vicious. After reaching the peak of 123.9 billion yuan in 2012, the investment in hydropower construction quickly fell back to 61.2 billion yuan in 2016 in four years. Facing the rapidly shrinking hydropower construction market in recent years, hydropower construction enterprises are also facing the same overcapacity of thermal power construction enterprises

thermal power construction market with a reduced proportion and will decline significantly. At present, the overall power supply and demand in the country will play an increasingly important role in vehicle lightweight. Loose supply capacity in some regions is surplus. At the beginning of 2017, the national energy administration carried out relevant work to connect the scale of coal-fired power production in relevant provinces, regions and cities during the 13th five year plan, so as to standardize the coal-fired power construction market and regulate the scale of coal-fired power construction and production. According to the analysis, China will basically not start new conventional coal power construction projects from 2017 to 2020, and a large number of coal power projects under construction should be "stopped and postponed". According to this calculation, the investment and construction scale of thermal power construction market will face a huge decline, and this trend will be long-term

the "suspension and postponement of construction" of coal power projects under construction faces settlement and compensation problems.

first, the amortization of temporary construction costs in the early stage. When the project starts, all temporary living and production construction facilities have been basically completed. The temporary construction scale of thermal power projects of general scale and above is between several million yuan and ten million yuan. At the same time, the costs of materials, mobilization and maintenance of large machinery in the early stage of the project have also been invested successively, and these costs will be amortized throughout the construction period of the project. If the construction project is suspended, the unamortized part will increase the project cost of the construction enterprise, and the financial statements reflect the loss

second, the project progress payment lags behind. Due to insufficient funds for some engineering projects, the allocation of Party A's engineering funds lags behind the progress of the project, and there is a phenomenon of arrears of Engineering funds, and the "suspension and postponement of construction" of the project will increase the severity of this matter

third, the settlement and compensation issues related to the "suspension and postponement of construction" of the project. After the "suspension and postponement" of coal-fired power projects under construction, the construction owner is bound to increase the uncertainty in the allocation of progress funds, the settlement of project funds, and the withdrawal compensation of the project Department of the construction enterprise under its own operating pressure. However, engineering contracts generally attribute the factors of policy changes to the category of force majeure. According to the principle of "each party bears its own losses", the owner will not compensate the investment and losses of power construction enterprises, especially the costs of materials, temporary facilities, idle loss of personnel and equipment, mobilization and demobilization of personnel and equipment that do not form physical quantities, which is bound to cause huge losses to power construction enterprises. According to the calculation at the end of March 2017, the coal power projects under construction have been "suspended" and the projects undertaken by China Power Construction and China energy construction alone have formed nearly 3 billion yuan of project funds to be settled

related problems in the power construction market

in recent years, the order of the domestic power construction market has continued to improve, but there are still phenomena that affect the healthy development of the power construction market, such as non-standard bidding procedures, unfair contract terms, and non-standard contract execution. The main reason is the lack of supervision in the power construction market

nonstandard bidding procedures

first, there are too many bid sections of the project. It is a common phenomenon that engineering projects are divided into 5-6 bid sections, and individual engineering projects are even more. This practice is contrary to the provisions of "reasonable division of bid sections and determination of construction period" in the bidding law, which increases the bidding cost of construction enterprises, reduces the utilization rate of resources such as on-site living and production temporary construction, large machinery, manpower and management, increases management links, increases construction costs, and increases on-site cross operations, which is not conducive to the safety production management of the project

second, the "ceiling price" of the project is set unreasonably. Since 2013, most thermal power construction projects have set a "ceiling price" in the bidding process. However, according to the calculation of bidding enterprises and the special investigation results of China Electricity Construction Association, the "ceiling price" of some thermal power projects is significantly lower than the average construction cost of the thermal power industry, and most of them have no "ceiling price" calculation explanation. The transparency of the bidding process is low, which does not meet the principles and requirements of market integrity

third, the code of valuation with bill of quantities of construction projects is not strictly implemented. When some bidding units adopt the method of "valuation with bill of quantities", the bill of quantities is incomplete. In the process of project construction or settlement stage, the visa for the actual increased quantities is "avoided" or delayed in signing, which increases the difficulty of settlement and damages the legitimate interests of construction enterprises

fourth, the "default" bidding situation is lower than the cost price. In order to obtain engineering projects, the bidding price of some construction enterprises with poor self-discipline is significantly lower than the "average cost price of the industry", and even a "diving" bidding phenomenon is far lower than the "cost price" of the enterprise. Some project bid evaluation committees let it go. It not only disrupted the order of the power construction market, but also buried hidden dangers for the project quality and construction safety

fifth, the bid security of some projects is extremely irregular. In addition to the quality bond, some owner units set up bid bond, performance bond, progress bond, safety bond, migrant workers' wage bond, integrity bond and other various bonds at will, and some local investment enterprises even set up bid earnest money (credit bond), resulting in a substantial increase in the bidding cost of bidders

the contract text is not standardized, and the terms are unfair

first, the total contract price will not be adjusted at one time. Some owner units set fixed prices for some processes with high operation and management risks, and adopt the contract unit price and separate lump sum expenses, which will remain unchanged during the validity of the contract; It will not be adjusted due to market changes, environmental changes, policy adjustments, force majeure events or any other factors, and the interested contractor has transferred the risk

second, the contract price adjustment terms are relatively harsh. Although some engineering contracts admit that the price can be adjusted according to the changing factors in the construction process, setting a higher adjustment threshold or adjustment conditions is obviously not conducive to power construction enterprises, which is a typical unreasonable clause

third, set the terms that the owner can change at will. Under the "change" or "transfer and subcontracting" of some contracts, unreasonable terms such as "Party A can make any change to the form, quality or quantity of the project or any part thereof" often appear, leaving a hint for the owner to change the contract at will, which is an obviously unfair market behavior

the execution of the contract is arbitrary

first, improve the project quality standard at will. For the sake of creating excellence in the project, some owners require the construction enterprise to carry out project management and construction according to the goal of high-quality project, put forward contents and requirements beyond the provisions of the original contract, arbitrarily improve the construction technology and quality standards, and transfer and increase the cost of the construction enterprise when the bid winning price of the project does not reflect the "high-quality price" or does not include the cost of creating excellence in the project

second, change the contract duration at will. Some engineering projects require the construction enterprises to stop work and postpone the construction period due to insufficient early preparation, insufficient funds, delayed arrival of equipment and "materials supplied by Party A"; Or the construction may be accelerated due to the commissioning in advance