What is the role of construction supervision in project investment control?

Budget exceeding budgetary estimate, budget exceeding budgetary estimate and final accounts exceeding budget are common phenomena in the field of fixed assets investment in China. There are many reasons for this problem, which can be summed up in two aspects: first, the determination of investment objectives is unreasonable; Second, the whole process was not effectively controlled during the project implementation. The author thinks that the whole process of construction supervision is an effective investment control method. Since the construction supervision system was popularized in China, it has played a certain role in reversing the phenomenon of out-of-control investment in construction projects. However, there is a widespread phenomenon of "emphasizing supervision in construction stage and neglecting supervision in other stages", which attaches importance to project quality supervision and ignores investment and progress supervision; The phenomenon of emphasizing technology over economy over management makes the construction supervision system not give full play to its role in investment control. This paper discusses how to give full play to the due role of construction supervision in investment control.

Generally speaking, the influence of each stage of construction on construction investment is shown in Figure 1:

As can be seen from the figure 1, the cost of the construction stage is much higher than that of the design stage, and the cost of the design stage is also higher than that of the decision-making stage, but the influence of each stage on the investment amount is just the opposite. Deciding whether to build or not, what kind of scale and standard to build is the biggest influence on investment in the project decision-making stage, and the line selection and structural type in the design stage also have great influence on investment. By the construction stage, the investment scale has been basically determined, but since the construction stage is the stage of using most funds, management should be strengthened and investment control should be carried out. 1 project decision-making stage

The decision-making stage of the project is the stage that determines whether the project exists, and whether the decision is correct or not is directly related to the success or failure of the investment, so this stage should be the key stage for us to control the investment. Investment decision-making should be based on the feasibility study of the project, comprehensively analyze the technical, economic and financial aspects of the project on the basis of respecting the objective reality, correctly determine the investment objectives of the project at the present stage, that is, investment estimation, full investment, give play to the control and guidance of the design budget, and eliminate hidden dangers for the investment control in the subsequent stage. Influenced by many complicated factors such as the management mode of capital construction under the planned economy system, the construction supervision of most engineering projects only stays in the construction stage, and has not been applied to the whole process of project implementation, especially in the investment decision-making stage. Therefore, we should strengthen the promotion of supervision system, broaden the scope and content of supervision work, and introduce supervision system into the decision-making stage. Of course, as far as our current practice is concerned, the competent department should also review the feasibility study and investment estimation. Due to various factors, it is difficult to fundamentally guarantee the quality of feasibility study at present, which leads to some investment decision-making mistakes. After defining their respective rights and responsibilities, the pre-construction supervisor can follow up and examine the feasibility study and investment estimation more deeply and carefully, and ensure that the basic data of the feasibility study is reliable, the demonstration method is scientific and correct, and the conclusion is objective and fair with its social reputation, which is an effective method to improve the scientific investment decision and control the investment. Therefore, pre-construction supervision should go deep into all stages of feasibility study. In the data collection stage, it is necessary to ensure the accuracy and reliability of the data, ensure that the data can truly reflect the actual situation, and lay the foundation for finally drawing a reliable conclusion; In the specific research stage, macro analysis and micro analysis, qualitative analysis and quantitative analysis, static analysis and dynamic analysis, professional analysis and comprehensive analysis should be combined to analyze the project prospect and determine the investment estimate that can truly reflect the project investment amount. In the conclusion stage, before construction, the supervisor should urge the compiling unit of the feasibility study to draw the conclusion whether the project is feasible or not with an objective and fair attitude and the concrete results of the research. Only by making decisions according to this conclusion can we truly optimize our investment behavior and make all construction projects produce good investment benefits. In the decision-making stage of the project, special attention should be paid to prevent the feasibility of the project from being determined first, then the samples are selected, and the data that can make the project feasible are fabricated, thus approving the feasibility study, fundamentally distorting the feasibility study, resulting in a large number of "phishing projects" and inferior projects, leading to out-of-control investment and great waste of investment.

2 Design stage

The design stage is the starting point of specific project construction and the first step to concretize the project development objectives. It is also the main stage to determine the project cost. This stage not only has a great impact on the project quality and construction progress, but also has a decisive impact on the investment. Through design, the scale, standard, function and structure of the project are determined, so as to determine the basic project cost of the project. According to the analysis of some western countries, the design fee is generally less than 1% of the whole life cost of a construction project, but it is this less than 1% that affects more than 75% of the project cost. Thus, the investment control in the design stage is very important. Since the implementation of construction supervision system in China, good results have been achieved in engineering quality, construction period and investment control, but it is mainly limited to the construction stage. As far as the current situation is concerned, it is rare to implement the supervision system in the design stage, and some projects are not standardized and comprehensive enough even if they are supervised in the design stage. Therefore, how to supervise in the design stage is indispensable for controlling investment in the whole process.

In the design stage, the supervisor should mainly do the following work:

(1) Adhere to the combination of science and technology and economy.

It should be noted that the combination of technology and economy is one of the effective means to control investment. For a long time, in the field of engineering construction in China, there has always been the disadvantage of separation of technology and economy. Many foreign experts point out that the technical level, working ability and knowledge of China engineers and technicians are comparable to those of their foreign counterparts, but they lack economic concepts and conservative design ideas. Foreign technicians always consider how to reduce the project cost, while China technicians either ignore it or regard it as irrelevant. However, cost personnel are often not familiar with engineering knowledge, and are even less familiar with various relationships and problems in the progress of the project. They often determine the investment amount purely from the economic point of view, and it is difficult to effectively control the project investment. Therefore, in the process of engineering design, technology and economy should be organically combined, and designers and project cost personnel should cooperate closely. For multiple design schemes to achieve the same function, it is necessary to pass technical comparison, economic analysis and effect evaluation. Choose a scheme with advanced technology, reasonable economy, safety, feasibility and convenience for construction. With the least investment, we can realize the necessary functions, prevent one-sided emphasis on technical feasibility, raise the safety factor and design standard at will, ignore the investment waste caused by economic rationality, correctly handle the unity of opposites between advanced technology and economic rationality, strive for economic rationality under advanced technology conditions on the basis of economic rationality, and infiltrate the concept of controlling engineering investment into the design.

(2) Strictly review the design budget and construction drawing budget.

Reviewing the design budget estimate and the construction drawing budget can promote the budgeting unit to strictly abide by the provisions and expense standards of the relevant state departments on the budget estimate and budget, prevent the expansion of investment scale and the occurrence of missing items at will, thereby reducing the investment gap, making full use of investment, and avoiding deliberately depressing the budget estimate (budget) and engaging in fishing projects, which will eventually lead to the phenomenon that the actual investment greatly exceeds the budget estimate (budget). Design supervision should review the legality, timeliness and scope of application of the project's engineering quantity, quantity, machine price, cost calculation and compilation basis, strictly control unreasonable changes in preliminary design and construction drawing design, and ensure the accuracy and reliability of budget estimate (pre-estimate). When the forecast exceeds the forecast, countermeasures should be taken after analyzing the reasons, so that the investment target will not be broken, or when it is inevitable to break through the investment target, the breakthrough range should be reduced as much as possible.

(3) Design supervision should be based on evidence.

Design supervision should be based on the laws and regulations on engineering construction in the engineering construction documents approved by the state, the design specifications and standards of relevant departments, the engineering construction supervision contract and other engineering construction contracts, which can neither replace the design unit for design, nor be divorced from the design work, nor ignore the interests of the owners, nor interfere with the normal work of the design unit. However, the design tracking should be carried out on behalf of the owner's interests based on the above basis, so as to realize the owner's construction goal and save investment.

2 Construction stage

After the project design work is completed, the investment amount has been basically determined. Of course, this investment amount is predicted by us according to the design drawings, not the planned value. Due to the long construction period and many variables, in order to realize the project according to the planned value, all construction costs must be controlled in the construction process. Therefore, the construction supervisor should improve the investment control system, clarify the key points of investment control, avoid or reduce the occurrence of claims, strictly sign the money, timely measure, accept and pay the completed project according to the contract, and be careful about the project changes and design modifications, so as to finally ensure that the final accounts do not exceed the budget and complete the final investment control.

3 Conclusion

We can summarize this article with Figure 2:

In the whole process of project construction, the investment target is set with the deepening of each stage of engineering construction practice, from shallow to deep, from coarse to fine. Investment estimation is the investment control target of project decision-making, design budget is the investment control target of design scheme selection and preliminary design, and construction drawing budget is the investment control target of construction stage. These investment objectives are an organic whole, and the objectives of each stage are mutually restrictive and complementary. The former controls the latter, and together with * * * constitutes the target system of investment control. In order to control investment, construction supervision must ensure the realization of this target system and go deep into the whole process. Only in this way can the investment be effectively controlled.

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