Project cost control and management is a highly technical and professional work in construction projects, which runs through all stages of investment decision-making, project design, bidding, construction and final accounts. Then do you know what role cost engineers play in project cost control? Let's have a look!
1 Introduction
The project cost management department and investors are more concerned about how to effectively manage the cost and how to reduce the cost without affecting the quality of the project. Cost engineer is an important implementer of cost control in engineering construction. They have many very important rights, such as the audit right of engineering measurement, the audit right of project payment and so on. They have played an active role in safeguarding the rights and interests of owners and construction units. How can engineers play an important role in project management? The following is about investment control in three stages: decision-making, design bidding (beforehand), construction (during) and completion settlement (afterwards).
2 Prior investment control
The project construction mainly has the following characteristics: large investment, heavy workload, long working hours and complicated internal and external relations. From the initial preparation to the final completion of the procedure, it needs to involve the planning, planning, discussion, decision-making and construction of multiple departments. Any mistake will cause huge economic losses. In different procedures, different emphases of cost control will produce different effects. Usually, the investment of a project is mainly determined by the decision-making stage and design stage of the project. According to the analysis of relevant data, the investment decision-making and design stage is 35 ~ 75%; 5-35% in the construction stage; The completion stage is 0 ~ 5%. Therefore, in the pre-construction work, the pre-investment control of the construction project is the most important part of the construction project. Only by effectively controlling it can the decision-making and design of project investment be decided. In the process of decision-making, we should correctly prepare the project resolution, and constantly analyze and summarize it. The research mainly includes the following contents: market research, technology research and benefit research. The function of cost engineer is mainly to determine the static investment reasonably, and has keen insight in the preparation of project task book, so as to accurately predict the investment dynamics and ensure the correctness of project decision. In the design stage, the investment estimate of the previous stage should be used to limit the design budget, so in the preliminary design stage, technical and economic comparison should be made to reduce the project cost. At this stage, the following measures can be taken:
2. 1 quota design
The quota design is to control the preliminary design according to the approved design task book and investment estimate, and control the construction drawing design according to the approved total preliminary design estimate. (1) First of all, the designer compares the schemes according to the investment or cost when designing, and chooses an advanced and economical design scheme. (2) Collect all kinds of engineering technical data, establish data files, and guide quota design with concrete and feasible indicators.
2.2 Application of Value Engineering Principles
Principle of value engineering: value coefficient v= functional coefficient FI/ cost coefficient C. The core of value engineering is functional analysis, followed by reducing costs on the premise of meeting quality requirements, thus improving the value coefficient of design projects. Using the principle of value engineering to optimize design is a comprehensive work, so in the design stage, therefore, in the design stage, the choice of design scheme should not only consider the use of function, but also consider the matching of function and cost. That is, the function should be beautiful and practical, and the cost should be the lowest. That is, the value coefficient is greater than or equal to 1. So as to truly achieve the best design effect and realize the investment control in each stage.
2.3 Preparation and review of bidding documents in the bidding stage
In the bidding stage, the cost engineer should carefully prepare the tender according to the investment estimate provided by the construction unit, the current quota specification and the local charging standard. When reviewing the tender documents, we should focus on the quantities, list of materials and equipment, unit price, fees, all kinds of lump sum fees and main material indexes of various sub-projects proposed by the tender unit.
2.4 the use of engineering cost information system
The project cost information system accumulates the cost data of completed projects and stores the real-time data of economic changes at home and abroad, which can ensure the accuracy and timeliness of relevant project cost data. Cost engineers should provide relevant project cost information to designers in time to help designers understand the market situation and create conditions for quota design. China's project cost information system is not perfect, and its own project cost information management system has not yet been formed, which has affected the related business of cost engineers, so cost engineers have the obligation to contribute to the perfect information system.
3 progress and investment payment control
In the process of project implementation, the cost engineer should know the bidding documents and contract conditions in detail and master the progress of the project. In the process of project construction, grasp the reasonable payment of project progress payment, and take the planned investment amount as the target value of investment control. In the process of construction, the difference between the completed quantity and the planned quantity is analyzed regularly, which provides a practical and reliable basis for the payment of the project progress payment.
3. 1 Construction organization design review
Construction organization design is a programmatic technical document to guide the project construction, a comprehensive technical, economic and organizational document to guide the whole process of construction projects, and a guarantee for the orderly, efficient, scientific and reasonable construction activities after the project starts. Therefore, the audit of construction organization design is a very important work, and the cost engineer must implement it seriously and responsibly. In addition, different construction schemes have great influence on the project cost. For example, earthwork volume is a big job in civil engineering, involving excavation, transportation, stacking, mechanical access roads and so on. Partial excavation, partial support or inclined excavation will have different effects on the project cost. Therefore, when auditing the construction organization design, the cost engineer should carefully study the feasibility and reliability of the construction organization design according to the environment and market conditions of the project itself.
3.2 Strictly control the payment of project progress payment.
When examining and approving the payment of project progress payment, the cost engineer should carefully check the construction drawing and the project image progress diagram, and review the accuracy of the completed engineering quantity, so as to realize the payment of project funds.
3.3 Strictly review the engineering changes to ensure that the total investment is not exceeded.
In the process of engineering construction, there are many variables, such as the increase of functions required by the owner, the appearance of new materials, the increase or decrease of construction difficulty caused by unforeseen factors, etc., because the construction sequence or progress will change due to the change of construction specifications, which may cause engineering changes. Engineering change is mandatory and complicated. In order to control the project cost, in view of the above changes, firstly, the owner and the contractor should negotiate on an equal footing and sign a change agreement. Secondly, the cost engineer should make records according to the actual situation, collect relevant information, make technical and economic analysis and comparison, check the changes of quantities and unit prices of various sub-projects and control the project cost within the investment scope.
3.4 keep abreast of the market price and the construction method of the project? In the implementation of engineering projects, the temporary pricing of materials agreed in the contract requires cost engineers to strengthen their understanding of the market, master the market conditions of people, materials and machines, and make the project cost as close as possible to the project cost. When the market changes too fast and the price difference is too large, the cost engineer should know the market situation in time, feed back the market information, or adopt the way of bidding and purchasing. Make the project cost as close to reality as possible.
3.5 Prevention of construction claims
Engineering claim means that in the process of implementing the economic platform, one party to the contract claims compensation from the other party for the losses caused by the other party's failure or incomplete performance of the obligations stipulated in the contract. There are many reasons for the claim, so the cost engineer should fully study and understand the reasons for the claim and try to reduce or avoid the claim in his work. Therefore, we should pay attention to the following aspects: accumulate experience, improve professional quality, and do a good job in collecting and sorting out information. At the same time, assist the owner to do a good job of counterclaim, urge the contractor to fulfill the obligations stipulated in the contract, and ensure the project quality and timely completion.
4. Cost control in completion settlement stage
Project completion settlement refers to the final project payment settlement made by the construction enterprise to the contractor after completing all the contracted projects according to the contents stipulated in the contract and checking that the quality meets the contract requirements. The task of the cost engineer in the project completion settlement stage is mainly to review the project completion settlement. The completed settlement book is calculated dynamically, and it is calculated according to the actual quantity and amount of the project. Audited project completion settlement is the basis for compiling final accounts and verifying the value of new fixed assets after the completion and acceptance of construction projects. The cost engineer mainly examines the following aspects: engineering quantity calculation, quota application, material price and cost calculation. According to the scale, characteristics and complexity of the project, the situation of construction enterprises is also different, so choose the appropriate audit method. Such as foundations, walls, columns, doors and windows, reinforced concrete beams and slabs in general civil engineering, the key inspection method can be adopted; For the project constructed with standard design drawings or general plans, due to different on-site construction conditions and local changes, the standard budget review method can only be adopted. Timely and accurate audit of project completion settlement is also the premise of project completion acceptance on time. It also saves the time for builders to put into use and effectively controls the life cycle cost of the project.
5 concluding remarks
Cost engineers have great activity space in all fields of project cost management, and have certain authority and responsibility. But at present, the society has not realized the whole process of cost management and control. In addition, the problems of imperfect engineering construction system and chaotic market order have also affected the further development of the cost consulting market to some extent. However, if there is demand, there will be market, and there will be more cost consulting services in the construction process, which will naturally attract the continuous attention of the construction unit. With the continuous development of construction project investment control practice, cost engineers will play an increasingly important role.
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