On the function and practice of project cost

On the function and practice of project cost

Our government has gradually reduced the intensity of economic control. In the process of engineering construction, in order to ensure the economic benefits of engineering construction, it is often necessary to control the engineering cost. Then, the following is the function and practice of project cost that I want to share with you. Welcome to read and browse.

First, the significance of project cost consultation

Since the implementation of the market economy system, the Chinese government's efforts in economic control have gradually decreased. In the process of project construction, in order to ensure the economic benefits of project construction, it is often necessary to control the project cost. The project cost exists in every link of the project, so controlling the project cost needs to be implemented in every link of the project construction. Project cost consultation can effectively manage the project cost control, control the project cost to a certain extent, and improve the work efficiency of the project construction.

Second, the content of the project cost consultation

Project cost consultation is the premise of controlling the project cost, including many links in the project cost. The main work focuses on direct cost, design work, project decision-making and construction design.

1. Direct cost

Direct cost refers to the cost of materials, machinery, labor, etc., which is the main cost in the process of engineering construction, so it is necessary to control direct cost. First of all, it is necessary to make statistics on the materials needed in the project construction and purchase materials under the guidance of project cost consultation. Secondly, calculate the usage of machinery and equipment involved in the project construction and calculate the required machinery usage fee. Third, confirm the personnel involved in the project construction and calculate the labor costs to be paid. Finally, the actual cost of personnel, machinery and materials is compared with the budgeted cost, the task schedule is made, and the direct cost is controlled reasonably.

2. Design work

On the one hand, the design work has certain normative restrictions on the construction technology in the project construction, and at the same time, the cost of the whole project is budgeted. This link of project cost control is the core part of the whole project cost control. As long as the cost control is fixed, it will basically not change in the future work. Therefore, in the process of project cost consultation, it is necessary to fully control the design work, observe and solve the possible problems in the design work in time, and ensure the reasonable control of the project cost in this link.

3. Project decision-making

Project decision-making is the process of implementing design work into entity construction. In this process, the possible problems in the construction process and the significance of the project construction will be considered, so as to decide whether to implement the project. Engineering cost consultation can give full play to its role in this link, fully understand the project background, specific conditions, difficulties in project implementation and economic benefits obtained from project implementation, analyze the market situation, and thus judge whether the project can be implemented. Project cost consultation can provide suggestions for project decision-making, so as to make correct decisions in controlling project cost.

4. Design of construction organization scheme

The implementation of engineering construction is inseparable from the design of construction organization scheme, so in the process of construction organization scheme design, it is necessary to conduct a comprehensive audit of every link in the construction process, especially the price, through engineering cost consultation, so as to control the whole engineering cost reasonably. Therefore, in the process of project cost consultation, in order to effectively control the cost of construction organization scheme design, it is necessary to effectively improve the level of construction organization scheme design.

Third, the status quo of China's project cost consultation in controlling project cost

At present, China's project cost management basically follows the way of bill of quantities valuation. Although some construction units attach importance to the quality control of engineering projects, they fail to achieve reasonable control in cost management, resulting in large loopholes in cost management. When some enterprises control the project cost, they only regard it as a simple fund registration and financial analysis, which can not give timely and effective feedback on the funds and financial status of the whole construction project, and at the same time, they have not done a good job in cost control. In addition, some cost personnel still have some shortcomings in thinking ability and management ability, which can not meet the development needs of modern engineering construction projects. Under the background of the information age, only by comprehensively and effectively grasping the cost information can we effectively control the cost. However, some cost personnel often cannot fully consider all the information when analyzing the data, which leads to unreasonable cost control. At the same time, due to the complexity of the market, the prices of materials needed for project construction are often diversified, and the prices of materials of different brands and qualities are also quite different, which will bring certain difficulties to the procurement work and increase the cost of materials. Finally, the financial management of most engineering construction projects in China is regulated by accounting law. Although this can ensure the legitimacy of project cost management, in reality, accounting supervision is often not fully implemented, and some leaders do not attach importance to the role of accounting law, which will lead to the inability of project investors to effectively control the cost and project cost, thus affecting the speed and efficiency of project construction.

Fourthly, the necessity of engineering cost consultation in controlling engineering cost.

With the gradual transformation of the government's means of controlling the market economy, the cost control and project cost control in engineering construction projects are managed by investment companies or construction companies. In the process of engineering construction, in order to control the engineering cost reasonably and effectively, it is necessary to carry out engineering cost consultation. Only in this way can the project cost play its positive role, so as to achieve the purpose of effectively saving costs and ensuring the economic benefits of the project. To a certain extent, project cost consultation can help cost personnel to understand all aspects of engineering construction projects and accumulate more work experience. At the same time, project cost consultation can provide comprehensive and specific information for cost personnel in the process of project construction, which is conducive to providing a reasonable control scheme for later project cost control, controlling the cost to the maximum extent and effectively protecting the economic interests of investors.

With the increase of engineering construction projects, dereliction of duty events such as contract disputes are gradually exposed. Therefore, the construction unit urgently needs a group of professional managers who are proficient in project cost to make professional estimation and strict control on specific matters.

Verb (abbreviation of verb) Practice of engineering cost consultation in controlling engineering cost

1. Project decision-making stage

Investment estimation is to budget the total investment of a specific construction project according to a certain method. Investment estimation plays an important role in evaluating whether the project is economical and judging whether the investment is necessary and reasonable, and it is one of the main cost documents in the decision-making stage. Cost consulting agencies should pay attention to the following points when accepting entrustment and making investment estimation:

(1) Collect sufficient estimation standard basis. Besides analyzing and utilizing the existing data, it is necessary to adjust and revise the estimation index at any time according to the actual changes, so that the estimation index can better reflect the characteristics of comprehensively summarizing the project valuation.

(2) Consider the risks in the middle and later stages of construction. Properly conduct a reasonable risk assessment, take countermeasures in advance, establish an emergency mechanism, and eliminate hidden dangers in time.

After the decision of the proposed project is made, the key of construction and investment cost control becomes design, which directly affects the progress and investment intensity of the construction period. In the design stage, it is necessary to strengthen cost control, pay equal attention to economic control and technical monitoring, and fully infiltrate the joint management of the two into the project scheme design, technical application design and construction drawing design, so as to achieve effective control of the overall investment. Investors will pay more attention to the tender offer and final settlement price after the completion of the project in the construction stage of the project, and often pay less attention to the design budget as one of the design documents. There are also some design institutes that can't make a good design budget because of their limited technical strength, which affects the investors' determination of the final price of the project products.

2. Bidding stage

When entering the bidding stage, the cost consulting company must work out a reasonable bidding scheme. According to the drawing design and construction scheme, the cost of sub-projects is divided into several construction blocks, and then the corresponding pre-tender estimate and list are compiled. The cost consulting company shall prepare a list according to the corresponding pricing standards, clearly divide the specialties and distribution, and indicate whether there are any sub-items as far as possible. It is not allowed to use the same process to handle different projects and then sub-items, which will seriously affect the cost monitoring and cost accounting in the construction process. In addition, it is necessary to list the necessary expenses according to the actual situation on site to avoid unfounded claims.

The bidding documents are mainly composed of equipment and materials procurement bidding part and construction bidding part. When compiling bidding documents, the principles, specifications and corresponding procedural links of construction bidding must be clearly marked, and the whole process of project construction, contract signing and multi-party cooperation should be elaborated in detail. In addition, the tender documents, as one of the contract documents, also have legal effect and can be used as the basis for claim when the project is completed. Therefore, the preparation of bidding documents must be meticulous, accurate and rigorous.

Finally, when signing a construction contract, you must carefully check the information, especially the relevant contents of the rate bidding. The responsibilities, rights and interests of the employer and the contractor must be clearly stated, especially the risk fee part, which is very important for bidding. Construction contract is an important basis for project appropriation payment, project construction and claim settlement, which will directly affect the construction cost, quality and progress of the project.

3. Construction stage

The construction stage is a concrete process to turn the contract content and investment plan into real objects through practical operation. At this stage, the construction unit should be strictly audited and comprehensively evaluated. The key task of this stage is to find unreasonable measures in the construction process, make corresponding adjustments according to the actual changes of specific contents in each construction stage, make reasonable prediction and analysis of risks according to the construction plan and actual changes, and formulate corresponding preventive measures. Through the comprehensive control of the above parts, the overall cost can be effectively controlled. At the same time, we should do a good job in coordination in all aspects.

Due to the long time span of each stage of construction and many factors affecting the details, the cost consulting agency must effectively monitor each part of each link. The specific requirements are as follows:

First, do a good job in controlling the contents of engineering design changes. There are bound to be some changes in the construction process, which should be controlled reasonably according to the actual construction situation. On the premise that the quality is guaranteed accordingly, do a good job in cost control to avoid construction disputes; The second is to do a good job in on-site visa work, including concealed works, and record relevant data on site to prepare for accounting work. Cost consulting agencies can track the actual progress of the visa work and avoid the phenomenon of incomplete visas due to ignorance of the quota; The third is to control the price of materials and the use of machinery. The cost consulting organization needs to assist the construction unit to complete the inquiry task, and reduce unnecessary expenses as far as possible within the cost range while ensuring that the material grade and quality meet the corresponding requirements.

4. Completion settlement stage

Final settlement is the last link to control the project cost, and it is also an important link to determine the cost. Therefore, the construction unit and the construction unit pay special attention to the work at this stage. At this time, the cost consulting organization should not only review the settlement price and the reduced amount of the project, but also analyze the reasons that affect the project cost in the report, and conduct necessary audits on the main contents of the adjustment part and how to control and correct the project cost.

Because the audit involves a wide range, the task is heavy, and the corresponding technical operation requirements are high, it is inevitable that calculation errors or misjudgments will occur in the actual audit stage. Therefore, in order to avoid these situations, cost consulting institutions should reasonably and effectively integrate the main responsible persons at the unit, technology and project levels and formulate a three-level audit system. Through layer-by-layer supervision and audit, a comprehensive, integrated and effective project audit is realized, and the audit report of completion settlement is accurate and comprehensive, thus achieving the fundamental purpose of effectively controlling the project cost.

In addition, many cost consulting institutions often ignore the post-evaluation stage of the project after completing the above links. In addition to insisting on collecting relevant data and materials, cost consulting institutions should do a good job in analyzing, sorting and archiving these materials, but also listen to the reasonable opinions and suggestions of the employer, the design unit, the supervision department and the construction unit in the whole control process, do a good job in perfecting and optimizing the work details, and realize good experience summary and warning of mistakes and lessons in the post-evaluation stage.

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