MOHURD Approves Pilot Market-oriented Reform of Construction Cost Management Proposed by Beijing Municipal Commission of Housing and Urban-rural Development
The General Office of the Ministry of Housing and Urban-rural Development ("MOHURD") has recently issued the Official Reply on the Plan of the Beijing Municipal Commission of Housing and Urban-rural Development for the Pilot Market-oriented Reform of Construction Cost Management (the "Reply").
The Reply reads that approval is granted to the pilot market-oriented reform of construction cost management proposed by the Beijing Municipal Commission of Housing and Urban-rural Development, and the Plan for the Pilot Market-oriented Reform of Construction Cost Management is approved in principle. Meanwhile, the Reply calls for reducing government's micro intervention in the market-based determination of construction costs, optimizing the mechanism under which "enterprises could offer quotation independently and the prices will be determined through competition", and better playing the government's role in macro management, public services and market regulation. This pilot reform is expected to boost the capacity of construction cost consultancies and their practitioners for market-based and internationalized advisory services. Moreover, it is made clear in the Reply that building a multi-layer and structured framework of indexes and indicators regarding construction costs will be taken as a key approach to abolish the previous basis of calculation of construction costs and work out a new one, and that work on developing a platform for the scientific, smart and dynamic analysis, formation and release of indexes and indicators should be completed as quickly as possible, to create reproducible and propagable practices for the further reform.