How to manage the cost of the project?

For a long time, people are used to putting cost control in the construction implementation stage. In fact, in the whole process of project construction, cost control runs through all stages. Cost control, construction period and quality control are interrelated. To control the cost, we must pay attention to the quality and progress of the project. Project cost control is a comprehensive subject integrating economy, technology and management. Only by achieving a comprehensive balance between all parties can we achieve results. The following is the introduction of how to carry out project cost management brought by Zhong Da Consulting, hoping to help everyone.

1, cost control in design stage

The design stage is the key and key point of cost control of construction projects. Although the proportion of design fee in the construction project cost is very small, generally only accounting for 0.5% ~ 2% of the project cost, the impact on the project cost can reach more than 75%. Reasonable and scientific design can reduce the project cost by more than 10%. However, in engineering design, many designers pay more attention to technology than economy, raise the safety factor or design standard at will, and pay less attention to economic rationality, thus affecting the effective control of engineering cost. For example, the indoor design temperature of air conditioning system in a shopping mall in winter can meet the comfort requirements, but 25℃ is considered in the design, which not only causes waste, but also does not meet the human physiological requirements. This design is unreasonable, resulting in a certain amount of waste. Obviously, it did not pay enough attention to the economic indicators of the project. Therefore, the influence of design stage on project cost is extremely important.

1. 1 Conduct design bidding and select the best design unit.

Actively promote the design bidding method combining architectural scheme with economic scheme, adopt multiple design units to bid, and organize relevant experts to conduct comprehensive appraisal. This can not only optimize the good design unit, but also promote the designers to innovate in the overall layout, architectural modeling, use function and other aspects of the project, and strive to reduce the project cost.

1.2 Optimizing design scheme by using value engineering

Implementing value engineering in the design stage can give full play to collective wisdom and work together to get the best design scheme, make the function of building products more reasonable, effectively control the project cost and reduce the life cycle cost of engineering construction projects.

When applying value engineering to control the project cost in the design stage, we should take the projects that have great influence on cost control as the research object of value engineering, make functional analysis and evaluation, study the target cost of the research object according to the requirements of quota design, and allocate the target cost to each function according to the functional evaluation coefficient, and compare it with the actual cost of each function to study the expected value of cost improvement. According to the requirements of value analysis results and target cost allocation results, various schemes are put forward, and the best scheme is selected by weighted scoring method, which makes the design scheme more reasonable.

1.3 quota design, effectively control the cost.

Actively carry out quota design and improve the economic responsibility system for design. Designers should be familiar with and master the budget quota, cost quota and budget price of building materials, then control the preliminary design and budget estimate according to the project investment estimate, and then control the construction drawing design and budget estimate with the preliminary design budget estimate. Therefore, under the premise of ensuring the function and technical indicators, each major must formulate a win-win strategy, rationally decompose and utilize the investment limit, integrate the construction drawing design and construction drawing budget, and organically combine technology and economy. Strictly control design changes to ensure that the investment limit is not easily exceeded.

At present, the design is not fine and the depth is not enough. This is an uncertain factor that increases the project cost. Due to frequent design changes, the project cost is difficult to control. According to the requirements of development experience and investment estimation, the design limit (cost, three-material consumption index, etc.) must be effectively determined. ), and establish a reward and punishment assessment incentive mechanism. For which major or workshop has broken through the cost index, we must analyze the reasons and solve it by modifying the design, so as to overcome the tendency of attaching importance to drawing and neglecting accounting, and change "after-calculation drawing" into "after-calculation drawing". And use the technical indicators of similar construction projects for scientific analysis and comparison, optimize the design and reduce the project cost.

1.4 Using contract measures to effectively control costs

In view of the current phenomenon that designers have a weak economic concept and design changes are arbitrary, the author thinks that the cost limit clause of design changes and modifications should be added to the economic clause of design contracts. If the design change fee exceeds a certain proportion (such as 5%) of the construction contract price, a certain proportion of design fee (design quality deposit) shall be deducted. Taking a certain binding force is a measure to control design specifications, design standards, engineering quantities, budget estimates and other aspects.

Only by well controlling the project construction cost in the design stage can we lay a good foundation for the cost control in all stages of project construction in the future and ensure the realization of the project cost control goal.

2. Cost control in bidding stage

2. 1 project cost control in the bidding process

Project bidding includes two aspects: equipment and material procurement bidding and construction bidding. Through bidding, the supply and demand sides can better choose each other, make the project price more in line with the value base, and then better control the project cost. It is very important for developers to choose construction units or material suppliers through bidding for project investment and even quality and progress control. The author believes that the owner should pay attention to the following points in the investment control during the bidding process:

(1) The bidding work shall follow the principles of fairness, openness, impartiality and honesty and credibility. Before bidding, the qualification of the construction unit should be strictly examined, and if necessary, on-the-spot investigation should be conducted to avoid abnormal phenomena such as "bidding by super-class enterprises, subcontracting by first-class enterprises, and entry of second-class enterprises", which is very unfavorable to project investment control.

(2) Prepare the bidding documents. Cost management personnel should collect, accumulate, screen, analyze and summarize all kinds of valuable data and information, identify, predict, analyze and evaluate all kinds of factors that affect the project cost, and then prepare the bidding documents. The terms involved in the tender documents should be scrutinized repeatedly, and "know yourself and know yourself" as much as possible to facilitate future cost control.

(3) Do a good job in bid opening, bid evaluation and calibration. First of all, bid opening, bid evaluation and bid selection should be carried out in strict accordance with the procedures. Bid evaluation shall follow the principles of fairness, impartiality, science and merit. The tenderee shall take measures to ensure that the bid evaluation is carried out in strict confidentiality, and no unit or individual may illegally interfere and affect the bid evaluation process and results.

(4) The reasonable lowest bidder wins the bid. As the owner, we should put an end to blindly seeking the bid with absolute low price, so as to avoid the malicious competition of bidders at a price lower than the cost price. The so-called reasonable low price is a reasonable low price under the premise of ensuring quality and construction period.

2.2 do a good job of signing the contract.

According to the contents of the contract, clearly stipulate the terms and expenses involved in the contract, such as the construction period, the way of price settlement, and the handling of breach of contract disputes. In the process of signing the contract, we will try our best to get the contract terms that are conducive to reasonable low price through negotiation for the unclear and unspecific contents in the bidding documents and design. At the same time, correctly predicting the factors that may cause claims in the construction process is forward-looking for claims and effectively avoids excessive claims. In addition, we should strive for risk control measures such as project insurance and project guarantee, so that risks can be properly transferred, effectively dispersed and reasonably avoided, and the control effect of project cost can be improved. Engineering guarantee and engineering insurance are effective measures to reduce engineering risk losses and compensate disputes.

3. Cost control in the construction stage

The construction stage is the stage with the largest capital investment, the extension of bidding and the concrete stage of contract implementation. Strengthening construction control means strengthening performance management. The main tasks of cost control in the construction stage are: engineering change and contract payment adjustment; Do a good job in process management and reduce engineering claims; Establish a construction supervision system to fully control the quality, progress and cost of the project; Take technical and economic measures to control the project cost; Control the settlement of construction project price.

3. 1 engineering change and contract price adjustment

As the owner's cost management personnel, we should check in advance, actively monitor and strictly review the engineering changes, calculate the impact of each change on the total cost, and minimize the engineering changes. Determine whether it is necessary to carry out engineering changes from the perspectives of use function, economy and aesthetics, so as to reduce unnecessary engineering costs and avoid out-of-control investment. If it is really necessary to change, it should be carried out in strict accordance with the procedures agreed by the state and the contract. If the change is inevitable, it should be changed as soon as possible, and the construction unit should implement the change as soon as possible. After the contract price is changed, the existing, applicable or applicable by reference in the contract should be considered first, because the price already concluded in the contract is relatively fair and reasonable.

3.2 Pay attention to process management and reduce engineering claims. The key to cost control in the construction stage is to effectively control project claims. In view of the current bill of quantities quotation, the construction unit often adopts the way of "winning the bid at a low price and claiming profits" to undertake the project. The claim must be based on the contract. Engineers should handle claims in a timely and reasonable manner. If the claim is not settled in time, the accumulated results will affect the progress of the project and bring adverse effects to both parties. When dealing with claims, we must adhere to the principle of rationality, strictly control the examination and approval, and reduce unreasonable claims. Strengthen active control, reduce project claims, make the project go smoothly and reduce the project cost. In addition, the construction units and material suppliers who fail to fulfill the agreed obligations will be counterclaimed in time, so that the cost can be effectively controlled.

3.3 Establish and improve the investment control system from the project management mechanism.

Establish project supervision system to effectively control project investment. In accordance with the supervision regulations and implementation rules, improve the division of responsibilities and related systems, implement responsibilities, and establish and improve the investment control system from the project management mechanism. At the same time, do a good job in reviewing the monthly progress payment to avoid out-of-control investment. Review the progress payment, according to the valuation basis agreed in the contract, apply the unit price and cost quota of materials, and pay the corresponding progress payment after checking the quantities determined by the supervisor.

3.4 Control the project cost from both technical and economic aspects.

(1) Effectively control the project cost from technical measures. On the basis of demonstrating the main construction technical scheme, new materials, new processes and new methods are widely adopted to effectively control the project cost technically. Technical measures are the necessary guarantee to control the project cost. According to statistics, material costs generally account for about 70% of direct engineering costs. At the same time, the level of direct cost affects the level of indirect cost. Therefore, the selection of new technologies and materials is a powerful guarantee to improve labor productivity and shorten the construction period.

(2) Effectively control the project cost from the economic measures. Strictly control site funds and headquarters management fees, reasonably control other expenses of construction projects, and minimize static investment, such as occupation fees, greening compensation fees and other compensation fees. Bulk materials or large-scale equipment can be directly provided by Party A according to the contract requirements, so as to achieve the purpose of reducing costs.

The materials provided by Party A shall be arranged according to the working procedure and construction schedule, so as to minimize the storage investment. In addition, strengthen the on-site management of materials provided by Party A, stack them reasonably, and reduce handling and loss.

4. Cost control in the completion stage

This stage is the last stage of cost control. According to the contract, budget and cost quota, completion data and relevant national or local laws and regulations, carefully review the payment of project funds. According to the policy, verify the engineering quantity of the final accounts submitted for approval, and implement the visa fee of the contact form, so that the audited settlement can truly reflect the actual project cost.

To sum up, in order to effectively control the cost of engineering construction, measures should be taken from the aspects of organization, technology, economy, contract and information management, and effective measures and means should be implemented at all stages of engineering construction to achieve satisfactory results.

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