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1、 Discussion on Project Cost Management control of the whole process of the importance of1, Cheng cost management need to control the whole process of Turning to construction cost management and control, we used to think of the engineering budget and final accounts, indeed, on the current system and
2、the reality, the project cost management and control is the budget and final accounts, the budget and final accounts, officers have identified the construction of Figure the amount of the projects, to borrow a fixed, taking into account costs (Construction Budget), or after the end of the constructi
3、on drawings and construction organization design based and on-site construction completed in the preparation of visa records, etc. accounts. This of course is necessary, useful, but we also see that when the budget and final budget or the staffing plan for completion of construction accounts, the bu
4、ilding program and design drawings have been identified, while the construction is based on the principle according to the drawings, So then the work done by budget and final accounts only include the cost of design changes arising from changes and to prevent over-estimated the risk calculation, and
5、 if the project is economically unreasonable, the decision-making made a mistake; if the design is technically not feasible or is not optimal, then the budget and final accounts staff could do nothing, that the current system, the budget and final accounts staff only after the accounts can only pass
6、ively reflect the amount of work already done and can only passively reflect the design and construction, which is obviously one-sided , and not enough, we must carry out construction projects, project cost monitoring of the whole process. A construction project from the deliberation, planning and d
7、esign to put into operation includes the following programs: the project proposal stage, the feasibility assessment phase, design phase, construction phase, completion and acceptance phase and post-evaluation. Accordingly, the determination of project cost and construction phase a stage adaptation,
8、generally divided into the following phases: In the project proposal and feasibility study phase of the preparation of investment is estimated in the preliminary design stage the preparation of design estimates, in the construction drawing design stage the preparation of construction drawing budget,
9、 in order to plan the budget based on the construction project bidding, contract form of the contract price is determined by economic Jian project cost; the implementation phase of the project actually completed the project according to the contractor the amount of the contract price, based on takin
10、g into account the price increases caused by the higher price, taking into account the design is difficult to predict which actually occurred during the implementation phase of the project and cost estimates to determine Example prices; in the final acceptance stage, a comprehensive collection of en
11、gineering and construction process of the actual cost of the full cost of the the preparation of completion accounts, accurately reflect the actual cost of the construction project. "Four count 2 price" associated with each other, the former restricting the latter, the latt
12、er to add the former. The so-called construction project cost management and control, that is, investment decision-making phase, design phase, construction phase of project contracting and construction implementation phase to the occurrence of the construction cost control within the approved cost l
13、imit at any time to correct the error occurred, to ensure that project management goals, the various construction projects in order to be able to rational use of manpower, material and financial resources to achieve better investment returns and social benefits. Second, investment decision-making ph
14、ase is the importance of cost control Investment decision-making in the construction phase of the project, the projects various technical and economic decision-making, on the construction project cost and project After the completion of the economic benefits, has a decisive influence on the construc
15、tion project cost control is an important stage. As a project cost management personnel in decision-making phase of the feasibility study report should be prepared, and economic evaluation of the proposed project, select the technically feasible and economically Example of building programs, and opt
16、imizing building programs based on the preparation of high-quality projects Investment is estimated that it has played in the project construction, the real control of the total project investment. Decision-making stage of the main factors affecting construction costs are: 1, determining the level o
17、f construction standards. 2, the choice of built-up areas. 3, construction, location (site) option. 4, the project economies of scale. 5, process selection. 6, equipment selection. The practice of socialist construction in China, often regardless of the objective laws of some to ignore the project d
18、ecision-making process in the economic evaluation, result in increased costs, lower efficiency, impact the projects investment and social benefits should be. Such as the choice of built-up areas, there is a basic principle, namely, close to the raw materials, fuel and consumer of principles. After t
19、he completion of the project so that it can avoid the raw materials, fuels, and finished the long-range transport, reduce costs, lower costs; transport distance may be shortened to reduce the flow of time, speed up cash flow is conducive to business, and in 2058 built the Great Leap Forward put into
20、 a large iron and steel enterprises in Hunan, the main raw material iron ore to be shipped from Hainan, has greatly increased the transportation costs, also increases the pressure on the transport sector, affecting the enterprises economic efficiency and social benefits. Another example is the proje
21、ct economies of scale, economies of scale refers to the product standards are reasonable and the production volume, a number of products under certain conditions, showed "increasing returns" economic phenomena, that is, with the expansion of production volume, unit cost red
22、uction, revenue increase. In China, a number of desirable long-term production economies of scale play a number of enterprises are too many small-scale production concentration is low, companies lack a reasonable division of labor specialization and cooperation to make the long-term allocation of re
23、sources at a low level state. In many places and enterprises, regardless of the economic scale and layout of rationality, to repeat the introduction, repeated construction, the project investments and resources, punish wastage; some industries, many enterprises redundant construction, the project in
24、vestment and a waste of resources; some industries, many enterprises low-level redundant construction, the project investment and a waste of resources; some low-level redundant construction industry, many enterprises, low-level competition, civil war, which is extremely unfavorable to the developmen
25、t of national industry is not conducive to international practice, is not conducive to participation in the world economic cycle in the global economy and Chinas imminent accession to the WTO as recently as today, this was particularly pronounced. If there is a pre-construction projects, the decisio
26、n-making mistakes in the latter part of the building regardless of how the implementation phase of cost management efforts, can not make up for their losses. In Chinas modernization drive, so the example is not too little. But many. Such as Guangzhou Peugeot Automobile and ethylene project that, due
27、 to mistakes in investment decisions, project a loss, causing direct economic losses of 120 billion and 8.0 billion. It was suggested that in Guangzhou the construction of a "Peugeot Vinyl 20 billion" The monument is in order to give decision-makers are shouting the alarm,
28、which is 20 billion yuan tuition fees, tuition fees on the real role to play. Reposted elsewhere in the paper for free download Third, the design phase is the importance of cost control Making investment decisions in the project after The key to controlling project cost is design. Design is technica
29、lly and economically for the proposed implementation of the project to conduct a comprehensive arrangement, is also planning the construction process. Technologically advanced, economical and rational design can shorten the duration of project construction, saving investment, improve efficiency. Som
30、e Western countries, according to the analysis, design fee is generally equal to the cost of construction of the whole life of less than 1%, which is less than 1% of the cost of the project cost accounts for the impact of degree of more than 75%. Because for the general construction projects, materi
31、als and equipment selection of more than 50% of the total project cost, while at the design stage architectural form, structure types, equipment and material selection have been identified in the building of the late implementation phase, the impact of the project cost is small (10 % or less). This
32、shows that the design quality of the whole project-building. The same construction project, the same single unit engineering, can have different options, which have different costs, therefore, it is necessary to meet the function under the premise of doing a number of options, through technical comp
33、arison, economic analysis and efficiency evaluation, selection of technology selection into the application of economic and rational design, optimization of the design process. Design optimization often used value analysis method known as value engineering, that is, to meet function or to maximize t
34、he functionality to reduce costs as much as possible under the premise, the formula is as follows: V = F / C Where: V-value coefficient F-function coefficient C-Cost Coefficient Where all the expenses incurred can be applied value engineering and construction projects required a lot invested human,
35、financial, material, and thus the value of works on construction projects and promising. As a fairly mature and successful management methods, value engineering construction projects in many countries has been widely used. For example, the United States in 1972 to mention the Ohio River dam design o
36、f a tight analysis, functional and cost two angles taken together, presented a new improved design, increased the height of the spillway gates, so that the number of gates from 17 was reduced to 12, while improving the construction of the gate with the caisson structure, without affecting the functi
37、on of the reliability of the dam under the premise of dams to save the cost 19.3 million U.S. dollars. Used for invited experts to conduct value engineering analysis of the cost of only 12.9 thousand U.S. dollars, has made one U.S. dollars returns the results of nearly 1500 U.S. dollars. In the engi
38、neering design phase correctly handle the relationship between technology and economic unity of opposites is the key to controlling project investment, designers and cost managers must work closely together to make a lot of programs in technical and economic comparison, in the reduction and control
39、of the project investment efforts, engineering cost management in the design process should be timely analysis and comparison of project investment, feedback, cost information, the dynamic impact on the design, in order to ensure effective control of investment. 4, Engineering Cost Management System
40、 Reform and Prospects For a long time, Chinas general neglect of the construction phase of the preparatory work for the project cost control, and tend to control the project cost be focused on the construction phase - examination Construction Budget and reasonable settlement of Construction and Inst
41、allation Engineering price, calculating Xizhang do so although there are use, but it is after all "remedial measures", duplication of efforts in order to effectively control construction costs, we must firmly control the focus to the early stages, first to attach importance
42、 to and strengthen the decision-making phase of the project investment estimate an effort to improve the feasibility study report the accuracy of the number of investment control, control of construction projects effectively play its role in the total cost. Secondly, we must work not only a clear bu
43、dget estimate to reflect the design, calculation of project cost, but also to the dynamic impact on the design, optimized design and play control of project cost, promote the rational use of construction funds role. At the same time the investment of the project cost estimates, design estimates, con
44、struction drawing budget, contract price, settlement price, completion of final accounts (4 count 2 price) to implement integrated management of change "in the pipe section of the railway police," the situation, which is need to deepen trade reform, through the operation of
45、 the market price mechanism, the formation of a unified, coordinated and orderly project cost management system to achieve the rational use of investment, to effectively control costs, get the best return on investment objective, and gradually build to adapt to of the socialist market economic system, in line with Chinas national conditions and international practices in project cost management system. Reposted elsewhere in the paper for free download