The basic content of project cost management is to reasonably determine and effectively control the project cost.
Reasonable determination of project cost.
Reasonable determination of project cost means reasonable determination of investment estimate, estimated cost, estimated cost, contract price, settlement price and final settlement price at all stages of construction procedure.
2) Effective control of project cost
Effective control of project cost refers to taking certain methods and measures at each stage of construction procedure on the basis of optimizing construction scheme and design scheme to control the occurrence of project cost within a reasonable range and approved cost limit. Specifically, we should use the estimated investment price to control the selection of design scheme and the estimated cost of preliminary design; Design and revise budget cost with budget cost control technology; Use estimated cost or revised estimated cost to control construction drawing design and estimated cost, so as to make rational use of manpower, material resources and financial resources and obtain better investment benefits. Including:
(1) Cost control of the whole construction process with emphasis on the design stage. The life cycle cost of a construction project includes the project cost and recurrent expenses after the project is delivered and used (including operating expenses, daily maintenance and repair expenses during the use period, major repairs and local renewal expenses), as well as scrapping and dismantling expenses after the project expires. According to the analysis of some western countries, the design fee generally accounts for less than 1% of the whole life cost of a construction project, but it is this part that is less than 1%, which affects more than 75% of the project cost. It can be seen that the design quality is very important to the benefit of the whole project construction.
(2) Active control. The basic task of cost engineer is to effectively control the construction period, project cost and project quality. Therefore, a comprehensive study should be conducted according to the requirements of the owner and the objective conditions of construction, and a set of practical measurement standards should be determined realistically. On the basis of "control" in advance, actively take measures to actively influence investment decision-making, design, contracting and construction, and actively control the project cost.
(3) The combination of technology and economy is the most effective means to control the project cost. In the process of engineering construction, technology and economy are organically combined. Through technical comparison, economic analysis and effect evaluation, the unity of opposites between technological advancement and economic rationality is correctly handled, and the concept of controlling project cost is infiltrated into various design and construction technical measures.