On the basis of analyzing the present situation of construction project cost management in China, this paper probes into the development trend of construction cost management in China, and analyzes the new requirements for construction cost management after China's full entry into WTO, the outstanding hot issues in current cost management, and the characteristics of international practices and western developed countries. Combined with the actual national conditions, this paper puts forward some countermeasures and suggestions for the reform of construction project cost management in China.
With the rapid development of science and technology and China's full accession to the WTO, international competition will become more and more fierce. Where will the construction cost management in China develop, and what measures must be taken to meet the coming of economic globalization and the sustainable development of the construction industry?
There are two kinds of project cost management, one is the management of construction project investment cost, and the other is the management of project price. Construction project investment cost management belongs to the category of investment management. The meaning of construction project investment cost management is a systematic activity to predict, calculate, determine and monitor the project cost and its changes in order to achieve the expected goal of investment under the condition of drawing up the planning and design scheme. This meaning includes both micro-management and macro-management of project investment expenses. Project price management belongs to the category of price management. Under the condition of socialist market economy, price management is divided into two levels: one is the systematic activities of cost control, pricing, pricing, bidding and so on, which are carried out by production enterprises to achieve management objectives on the basis of mastering market price information at the micro level. It reflects that micro-subjects plan, predict, monitor and adjust commodity prices according to the economic law of controlling price movement, and accept the adjustment of prices to production. Second, at the macro level, the government uses legal, economic and administrative means to manage and regulate prices according to the requirements of social and economic development, and regulates the price behavior of market participants through market management.
1, the present situation, mode and characteristics of project cost management at home and abroad
1. 1 current situation of project cost management in China
In the traditional planned economy period, the construction industry was not regarded as an independent material production department. In the cost management of construction projects, the valuation method of administrative management plan is adopted. Therefore, people do not pay enough attention to the project cost management, and the construction project cost is often determined according to the planned price and administrative regulations. With the development of China's reform and opening up and the establishment of the socialist market economic system, the management of construction projects has been greatly impacted. With the opening of the country and the introduction of advanced scientific management mode, people begin to re-understand the related problems of project cost management. Due to the implementation of budget quota management mode in China, the common problem is that the construction project cost is difficult to objectively and truly reflect, and there are many projects that exceed the budget, budget and final accounts, which break through the planned investment. Due to the lack of scientific rationality in determining project investment, there are many problems in project implementation.
Since the Third Plenary Session of the Eleventh Central Committee of the Communist Party of China, with the deepening of the economic system reform, the implementation of opening to the outside world and the establishment of the socialist market economic system, we have begun to establish and improve the project cost management system and model to adapt to the development of the socialist market economy, making the project cost management more scientific and reasonable. However, China's project cost management system has always followed the model of the former Soviet Union, which is compatible with the management system under the planned economy model. At present, it has not adapted to the development of market economy, and there is still a big gap compared with western developed countries. The purpose of project cost management reform is to establish a new project cost management system with China characteristics, which meets the needs of China's socialist market economic system. There are still many problems to be solved at present. The main factors that affect the normal function of construction project cost management are as follows: First, the price mechanism is ignored and there is too much administrative intervention. Second, a long-term planned economic system and a single financial investment channel. The third is to cut off the connection between the project cost and the price in the circulation field. Fourth, there is a lack of information processing and transmission. Fifth, the investor responsibility system has not been fully completed. Sixth, there is a serious shortage of foreign employees. All these have caused the low quality of engineering cost management talents in China and seriously hindered the development of engineering cost management in China.
1.2 foreign project cost management mode and characteristics
From the current data analysis, the project cost management mode is not uniform, and different regions have different ways and management forms, so it is impossible for WTO members to accept any one of them. With the development of international construction industry, the cost management of construction projects in developed countries has been running on a scientific, standardized and procedural track, and many good international practices have been formed. The United States, Britain, Japan, Germany and other countries have established a more scientific, rigorous and perfect management system in terms of project cost management in combination with their own actual conditions. By formulating practical methods, the whole process of project cost control and management is carried out from bidding quotation to implementation after winning the bid. These successful experiences have reference significance for the reform of project cost management in China.
(1) Project cost management in the United States. The current project cost consists of two parts. First, the owner's operating expenses, known as soft expenses, mainly include the initial expenses such as fund raising, equipment purchase and reserve funds, compensation for land acquisition and demolition, financial expenses, taxes and fees. Second, the actual cost of construction based on Jian 'an project compiled by the design consulting company or general contracting company entrusted by the owner is generally called hard cost, which mainly includes the labor, materials and machinery consumption and use fees required for construction, the wages, office and other miscellaneous expenses of the on-site owner's representative and construction management personnel, the contractor's on-site living and production facilities, various insurances, taxes and unforeseen expenses. In addition, the contractor's profit generally accounts for 5% ~ 15% of the project cost, and the owner realizes the whole process management of the project cost by entrusting a consulting company. The United States has a unified pricing basis and standard, which is a typical market-oriented price. Engineering estimation, budgetary estimate, labor, materials and machinery consumption quotas are not formulated by government departments, but by guilds (associations) in several large areas. According to the information accumulated by various construction enterprises and the actual situation in the region, according to the engineering structure, material types and decoration methods, etc. , calculate the consumption and base price of square feet of building area, and based on this, input the data into the computer and push it to the market. Although these data are not mandatory regulations of government departments, they can reflect the actual situation because they are based on scientific, accurate, fair and practical engineering data, which are widely recognized by the society and can be implemented smoothly. Therefore, the project cost valuation is mainly made by the consulting organization to formulate the unit construction area consumption, base price and cost estimation format, and the contracting parties determine the project cost through certain market transactions.
(2) British project cost management. Project cost management has a long history. After hundreds of years' practice, the unified standard engineering quantity measurement rules (SMM) and project cost management system in Britain have been formed, making project cost management a scientific, standardized and influential independent specialty. Government investment projects are determined by the financial department according to the construction standards and cost standards of different types of projects, taking into account the influence of inflation on the cost and other factors. All departments should organize the implementation within the approved construction scale and investment scope, and must not break through. For private investment projects, the government does not interfere, and investors generally entrust intermediaries to make investment estimates. There is no unified quota in Britain, and the calculation rules of engineering quantity have become the basic rules of measurement and pricing that all parties in engineering construction abide by together. In principle, the tender offer is based on the quantities and unit price contract (i.e. bill of quantities method). In Britain, project cost control runs through the whole process of project establishment, design, bidding, contract signing and project settlement. With the deepening of phased work within the established investment scope, the expected goals of construction period, quality and cost have been realized.
(3) Project cost management in Japan. The project cost is managed in the whole process, from investigation stage, planning stage, design stage, construction stage, supervision and inspection stage, completion stage to warranty stage. The Cost Planning Sub-branch of Japan Architectural Society has formulated the sub-item quota of Japanese construction projects, compiled the project cost estimation manual, and revised it regularly according to the fluctuation of market prices, and implemented dynamic management. Investment control can be roughly divided into three stages: first, the feasibility study stage. According to the implementation project plan and construction standards, the development scale and investment plan are formulated, and adjusted and controlled according to the comparable project cost and the current market price. The second is the design stage. Design according to the scheme put forward in the feasibility study stage, prepare the project budget, and control the investment within the plan. After the construction drawing is completed, prepare the project budget and compare it with the budget estimate. If it is higher than the estimated budget, the design will be revised and the standard will be lowered to keep the investment within the original plan. Third, strictly follow the drawings, calculate the engineering quantity, make the material supply plan, strengthen the cost control and construction management, and control the final accounts of completion within the project budget. The relevant departments of the Japanese government are not only responsible for the unified organization and compilation of the invested public buildings, government office buildings, sports facilities, schools, hospitals, apartments and other projects, but also directly manage the engineering costs of the above public projects.
(4) German project cost management. The management of any construction project, whether it is a government project or a private investment project, is the quality, progress and cost control throughout the whole process. On the basis of scientific and reasonable determination of project cost, dynamic management and control are implemented. Once the investment amount of the project is determined (government projects are approved by the government and private projects are approved by the owner), it must be strictly implemented in accordance with the investment estimate in the implementation process, and it is not allowed to modify or break through at will.
Judging from the management mode of the developed countries, the project cost management is in an orderly market operation environment, and systematic, standardized and standardized management is implemented, while the price determination and management are guided by market and social recognition, and private industry associations play a huge role in the management ownership of the industry. At the same time, the government's macro-control, advanced valuation basis, valuation methods, developed consulting industry and multi-channel information release basically represent the current international practice of project cost management, which is completely suitable for the basic principles of WTO.
To sum up, we can briefly summarize the characteristics of foreign project cost management system as follows: First, effective indirect government supervision. The second is the rule-based pricing basis. The third is a multi-channel information release system. The fourth is the calculation method of separation of quantity and price. Fifth, the developed engineering cost consulting industry.
2. The development trend of China's project cost management has joined the WTO, and China's economy has entered the track of world economic integration, which can be said to be the second opening up of China. Its development trend has two aspects, one is the internationalization of project cost management, and the other is the informationization of project cost management.
2. 1 Internationalization trend of project cost management With China's accession to the WTO, China's economy is increasingly deeply integrated into the global market, and there are more and more multinational companies and projects, many of which have to be operated through international bidding, consulting or BOT. At the same time, China enterprises have gone abroad to invest and operate overseas projects. With the internationalization of the domestic market and the comprehensive integration of domestic and foreign markets, foreign enterprises must take advantage of their advantages in capital, technology, management, talents and services to occupy the domestic market in China, especially the general contracting market. Another manifestation of the internationalization trend of project cost management lies in the increasingly frequent international academic exchanges.
2.2 The informatization trend of project cost management is accompanied by the Internet entering thousands of households. The collaborative office model formed by supply chain management, customer relationship management, knowledge management and enterprise resource planning management in the era of knowledge economy has promoted the informationization development trend of project cost management. The informatization development trend of project cost management has brought many new features to project cost management. Project cost management relies more and more on computer means, and its competition has become an information war in a sense. At present, western developed countries have applied computer network technology to project cost management, and started to realize the networking and virtualization of project cost management through online bidding. In addition, engineering cost management software has also been widely used, and some software companies specialize in the development and research of engineering cost management software. There are indications that project cost management will rely more on computer technology and network technology, and the future project cost management will become information management.
3. To analyze and study the countermeasures and suggestions that should be taken, we should proceed from the national conditions and make full use of the operating mechanism of WTO.
We should not only seize the opportunity with a positive attitude, but also meet the challenge with a cautious attitude. Especially after China's entry into WTO, the transition period has passed, so we should take active and effective measures to turn unfavorable factors into favorable ones and unsuitable ones into adaptation, so as to build a project cost management system with China characteristics and in line with international practice.
(1) Accelerate the transformation of management concepts. The first is the change of thinking mode, and we should gradually establish an international consciousness to adapt to the new situation, changes, problems and requirements caused by China's accession to the WTO. Secondly, we should strengthen the concepts of self-reliance, fair competition, respect for intellectual property rights, winning by quality, operating according to law and attracting talents.
(2) Standardize the domestic engineering cost consulting market. First of all, it is necessary to actively carry out personnel training to improve the technical level and professional and technical qualification level of personnel in consulting service units. Secondly, the existing consulting service units should be cleaned up and rectified, and the unqualified ones should be eliminated. Finally, formulate the code of conduct of consulting service institutions and establish good professional ethics.
(3) Reform and improve the basis and method of project cost valuation. The reform and perfection of valuation basis and valuation method is the key to the reform of project cost management. We should continue to improve and reform the current basis and method of project cost valuation. The reform and perfection of pricing basis and method should be: unifying quantity, liberalizing price and guidance fee. The truly market-oriented price mechanism works through the law of value, which is an invisible hand that spontaneously regulates the supply and demand relationship in the construction market. If the project price is truly market-oriented, it is possible to adjust the supply and demand of the construction market spontaneously, and it is possible to maintain the market balance through the growth and bankruptcy of enterprises. China's economic system reform is market-oriented, and the determination of project cost cannot be separated from the economic system reform. Therefore, the construction project cost management must be market-oriented, follow the objective laws of the market economy, and finally establish a mechanism that the market forms the project price.
(4) Actively carry out the bid winning method with reasonable low price without base price with bill of quantities as the main mode. Bill of quantities quotation is an international common pricing method based on fully improving the market and engineering guarantee system, and it is also the main pricing method for winning the bid at a reasonable low price without base price. This is the direction of China's bidding system reform, and we should actively create conditions and implement it as soon as possible.
(5) Strengthen the construction and application of the national construction project cost information network. In order to ensure the quality of the project budget, in addition to the design drawings with sufficient depth and their descriptions, there are also materials that correctly reflect the project cost. Informatization is the basis of good management, and the informatization of project cost should focus on serving the construction market and the reform of project cost management, organize technical research, and carry out greater development of informatization construction and application.
(6) Improve the legal system and strengthen the management function of the government. After China's entry into WTO, the government's original right to manage the economy will be restricted by the WTO, but it does not mean that the WTO denies the government's role in managing the economy. On the contrary, it puts forward higher requirements for the government's ability and role in running the economy. Especially in the face of the challenges brought by China's entry into WTO, the role of the government is indispensable. Among them, the government should play a major role in the field of engineering construction cost management.
(7) Relocate the cost engineer. At present, the knowledge structure and technical level of China's cost engineers are still far behind developed countries or regions, and the cost engineers can not be recognized internationally. It is more difficult to go abroad and undertake business in the international market. Compared with their international counterparts, the reasons for their lack of strong competitiveness are not only institutional problems, but also professional talents. Therefore, in the new form, it is urgent to reposition the examination requirements and responsibilities of cost engineers in China.
4. Concluding remarks
In a word, how to speed up the reform of China's project cost management, shorten the gap with the international as soon as possible, analyze the existing problems and explore the scientific management model is a realistic problem facing the project cost managers. In order to promote the standardization, marketization and scientific process of construction project cost management in China and deepen the reform of construction project cost management system in China, every practitioner engaged in construction project cost management should make unremitting efforts and contributions. Of course, in the process of construction, we should give full consideration to China's national conditions, step by step, and we should not rush for success.
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