Problems and countermeasures in project cost management?

What are the problems and countermeasures in project cost management? Here, Zhong Da Consulting will introduce relevant contents for your reference.

Project cost management is to reasonably determine and effectively control the project cost. With the improvement of China's economic development level and the increasingly complex economic structure, the inherent disadvantages of planned economy are gradually exposed. At present, the market in China is changing from a planned economy to a socialist market economy. As an organic part of the market, project cost management is also changing from government pricing to government-guided pricing, with the state regulating prices and the market forming prices. From the unified quota pricing management planned by the government to the comprehensive and dynamic project cost management of "control quantity, guidance price and competition fee", the marketization of project cost management has been realized.

Especially in recent years, the development of enterprises is in full swing, and the investment in fixed assets accounts for a large part of the total investment, so the management of project cost is very important. In addition, in recent years, China's construction market is facing the change of pricing model, which makes the project cost management more difficult. Faced with such a complicated situation, how to improve the project cost management to a new level will be a problem that many people think about. I will talk about my views on my own project management experience for reference only.

First, the drawbacks of the current project cost management

Engineering cost management plays an increasingly important role in the development of construction market and construction industry, but there are still problems that cannot be ignored in this work at present. How to make the construction project get a reasonable cost is a very arduous task and topic for the project cost management department. Judging from the current situation of the construction market, there are mainly the following problems in project cost management:

(A) the project cost management system is not perfect, there are many management problems.

As far as engineering quota is concerned, it can be divided into national unified quota, industry unified quota, regional unified quota, enterprise quota and supplementary quota according to the editor-in-chief unit and management authority. Regional and provincial quotas are compiled and issued by provincial quota stations and uniformly implemented in the whole province, and municipal projects invested by the government are issued by the government. Due to the different requirements and control scales of the two departments, conflicts often occur in the implementation process, which makes quota users at a loss and it is difficult for relevant competent departments to arbitrate.

(B) the pricing method is backward, which does not adapt to the development of the construction market economy.

At present, the project cost calculation model adopted in China's construction project bidding is still a planned economy model based on quota pricing. Quota always wants to cover everything, but it can't cover everything, because society is progressing and technology is developing. The more comprehensive the quota, the more counterproductive it is, and it is difficult to achieve the expected goal. The lag of time and the rigidity of content often put people in a dilemma and embarrassment when using quotas. In addition, the fixed consumption, related expenses and corresponding prices of the current construction administrative departments in China are all compiled according to the social average level, and the project cost formed on this basis basically belongs to the social average price. This average price can be used as a reference price for market competition, but it cannot fully reflect the actual consumption and technical management level of participating enterprises, which limits the fair competition of enterprises to some extent.

(C) the lack of the whole process of project cost management monitoring

At present, unfair competition in construction market transactions is still very serious. It is quite common that we do not follow the rules, blindly depress the project cost, shorten the construction period, advance the project payment and default on the project payment, resulting in poor quality, long construction period, over budget, low efficiency and great waste of many construction projects. Even Party A, Party B and consulting intermediary agencies collude to deliberately raise the project cost to obtain benefits, and the consequences are very bad. If designers artificially change the design, they can always see the improvement of standards; Due to the lack of precision and depth, many designs are frequently changed during construction; Investors only want to win the bid at a low price, but often ignore the qualification examination of the bidding construction unit or material supplier, which leads to subcontracting behavior. Contractors often adopt the way of "winning the bid at a low price and demanding profits", making use of contract loopholes and poor monitoring to "make money", resulting in a passive situation of project cost management.

Second, measures and countermeasures to strengthen project cost management

In order to change the above unfavorable situation and better manage the project cost scientifically and effectively, it is necessary to strengthen it from the following aspects to effectively improve and improve the project cost management.

(A) establish and improve the project cost management system

1. It is necessary to establish a unified project cost management organization, strengthen the management function of the project cost management department, enhance the macro-control ability, improve the system and method of project cost management, speed up the construction of laws and regulations, standardize the construction market, and safeguard the legitimate rights and interests of market participants.

2. Straighten out the relationship between the competent departments of project cost management, and establish a system of regular coordination and contact between departments, so that the standards and indicators of project cost management can be better connected and matched. Gradually transition from government organization and management to industry association management, and encourage the establishment of professional engineering cost consulting intermediaries. State departments manage government and non-government investments respectively, liberalize the prices of building materials and labor, and shift from direct management to macro-control. The focus of the work is to formulate relevant laws and policies, do a good job of coordination, straighten out relations and provide information services.

(2) Reform the current engineering valuation method and implement the bill of quantities valuation method.

The valuation method of bill of quantities is that the owner and the tendering unit prepare the bill of quantities according to the unified rules for setting the bill of quantities, and the bidder fills in the comprehensive unit price according to the enterprise level, which reflects the overall strength of the enterprise, meets the needs of equal competition, and is conducive to obtaining the most reasonable project cost and controlling investment. Bill of quantities valuation provides bidders with competitive bidding basis (also the basis for bid evaluation), and it is also the basis for paying progress payment in the construction process. In addition, when the project changes, the bill of quantities valuation is also an important reference standard for contract price adjustment or claim.

In the implementation of the bill of quantities valuation method, we should pay attention to the following aspects:

1, strengthen the understanding of the valuation mode of bill of quantities itself. Bill of quantities pricing is a pricing mode in parallel with quota pricing, and its core is to cooperate with the reform of engineering price management system. After the popularization of bill of quantities valuation method, the engineering cost management department needs new ideas and new cost management models to adapt to this reform work.

2. Strengthen the independent quotation ability of enterprises. The key to the implementation of bill of quantities valuation method lies in the independent quotation of enterprises. This requires most construction enterprises to form their own enterprise quotas. They should set up the enterprise quota system instead of the quota pricing model when formulating the comprehensive unit price.

3. Establish a project cost management system that is compatible with the bill of quantities valuation. The implementation of bill of quantities valuation must have a detailed and clear project contract management method. After the popularization and implementation of the bill of quantities valuation method, the new valuation method should be coordinated with the corresponding contract management mode, so that the project contract price determined by bidding can have corresponding contract management measures in the implementation process.

(C) to strengthen the whole process of project construction cost management

1. Strengthen the cost control in the design stage. In the process of project construction and completion acceptance, we should pay attention to the comparison with the design scheme. Design changes that have a significant impact on the project cost must be approved by the original project examination and approval authority. Without the approval of additional investment, design changes, improve standards, expand the construction area, not recognized in the audit cost, but also to investigate the responsibility of the relevant departments.

2. Strengthen the management of project bidding and reasonably determine the project cost. Under the condition of market economy, one of the main ways of project cost management is to carry out and improve the bidding system, and use market competition to achieve the purpose of survival of the fittest and reasonable determination of project cost. First, adhere to the principles of openness, fairness, justice, honesty and credit, and strengthen the supervision of bidding; Second, the project cost management department should determine the effective information release mechanism of project cost and material price, improve the professional quality of bid evaluation experts, and strengthen the monitoring of reasonably determining the pre-tender estimate and cost price and other related cost indicators; Third, when examining and approving the application for project bidding, we should carefully examine the fund implementation of the bidding project, and construction enterprises should also strengthen self-protection, do not blindly bid, and carefully select the bid; Fourth, the construction authorities at all levels must strengthen the review of the pre-tender estimate and the contract price. On the one hand, they must not interfere with the market competition of the parties to the transaction, on the other hand, they must ensure the legitimacy and rationality of the price competition and safeguard the legitimate rights and interests of all parties in the construction market according to law.

3. Strengthen the supervision and management of the project budget and final accounts. In view of the chaotic situation of the project budget and final accounts, in addition to strengthening the management of editing and auditing, it should also be taken as the focus of law enforcement supervision of construction projects and an inspection of the project budget and final accounts should be organized. After the final accounts of the project are submitted to the audit department for review, the project cost is supervised in many aspects.

4. Strengthen the management of engineering cost consulting industry. On the one hand, we should strengthen management. Straighten out the management system and ensure the scientific, technical and fair consultation work through effective supervision and management. On the other hand, we should conscientiously do a good job in the training and qualification management of engineering cost consulting practitioners, improve the overall quality of the industry, and give full play to its irreplaceable role in consulting services and market intermediaries.

(D) Establish a good competition order for project cost management.

To do a good job in project cost management, it is necessary to improve the political quality and professional quality of managers at all levels in this field, be honest, strictly enforce the law, and do a good job in the whole process and all-round project cost management from the project investment decision-making stage to the final settlement stage. At the same time, it is necessary to strengthen the research on basic theories and methods, take the lead of major departments, participate in many relevant units, make full use of modern communication means, give full play to the characteristics of large storage capacity and high speed of computers, establish a complete information network and a timely and reliable price information center, collect and publish all kinds of price information in the construction market in time, realize the enjoyment of information resources, and create favorable conditions and reliable guarantee for realizing the dynamic management of project cost at all stages.

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