Analysis on cost control management of petrochemical construction projects?

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The construction project of petrochemical production equipment needs strict cost control, and Sinopec Nanjing Engineering Co., Ltd., as a central enterprise, has very strict requirements on it. This paper mainly analyzes the problems encountered in the cost control management of petrochemical production equipment construction projects and the improvement methods.

1 How to control cost management

1. 1 Focus on cost control.

Paying attention to cost control can effectively control costs. The company is responsible for production equipment construction projects, mainly for the construction of refinery equipment and catalytic equipment. Cost management and control is not only to control the cost of a certain part of the project, but also to monitor the whole plant construction project. In order to realize reasonable monitoring, it is not reasonable to allocate costs, but to focus on monitoring costs. Among them, the part to reduce the cost as much as possible is the design link, so we should pay attention to cost control when designing the project to reduce the investment of our company's projects at one time. For example, after our company decided to install Yangzi BASF equipment for Nanjing Dachang, we will reduce the cost as much as possible in the design stage of the equipment to ensure the balance between maximizing the company's interests and optimizing the project.

1.2 Cost optimization control of each part.

In addition to design, we should pay attention to cost control, and also implement cost control in other links. Take the installation of Yangzi Petrochemical Company in Nanjing Dachang as an example. In order to reduce the material cost as much as possible when building the device, China Petrochemical Nanjing Engineering Co., Ltd., where I work, took the following measures in other links: comparing the cost performance of the materials used in the device installation, and choosing the one with the closest cost under the condition of ensuring the quality; After the design drawings come out, they should be repeatedly and strictly confirmed, so as to avoid data errors and the inability to execute the drawings, so that the drawings of Yangzi Petrochemical will not have errors caused by the drawings in actual construction; Clear the responsibility to individuals, let everyone have their own special work, refine the characters to people, and prevent the chaos in the construction of Yangzi Petrochemical. And implement certain support and encouragement policies according to cost-saving measures and suggestions.

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2 Problems encountered in cost management

2. 1 Something happened to the tendering company, which affected the progress.

In order to save the project cost, it is a serious problem in cost management to hand over the project to a small bidding company and conduct a second bidding because of the accident of the bidding company. In order to save money in the process of project construction, some companies will ignore the quality of the project and contract the project to some small companies that are not guaranteed and cheaper. This will cause small companies to ignore the project quality for their own profits after bidding, and even cause engineering accidents. However, the construction company can only be forced to bid for the project twice after the accident of the bidding company, which will cause a waste of cost.

2.2 Exceeding the estimated cost due to unexpected circumstances

Some unexpected situations will also cause waste of cost management, such as changing drawings and changing the person in charge halfway, resulting in chaotic division of labor and skyrocketing cost materials. The transformation of the drawings in the middle may lead to the complete rework of the building, which will basically waste the previous costs. Changing the person in charge halfway may lead to changing the positions of relevant personnel as soon as the person in charge takes office, resulting in management confusion and cost waste. The objective reasons for the skyrocketing cost materials will also increase the cost.

In the process of petrochemical construction, it is more effective to control the cost through the full combination of technology and economy. Specifically, we should formulate reasonable measures from the aspects of organization, economy and technology. From the organizational point of view, it is necessary to clarify the organizational structure of the project, implement the responsibilities and obligations of cost control, and formulate a clear division of management functions; From a technical point of view, choose a variety of schemes to carry out overall design, and conduct strict review and supervision research in preliminary design, construction drawing design, construction organization design and related technical fields to find out the links that can save costs.

3 How to prevent mistakes in cost management measures

3. 1 Strictly review the bidding companies.

In the process of project construction, the company will hand over the project to the construction company or construction team through bidding. When bidding, the bidding company must be strictly audited, and the bidding company with certain strength and experience must be selected to ensure the smooth construction of the project, reduce the project cost and realize the supervision of the cost. Some bidding companies now, because of their lack of strength, will take connections and pay bribes before bidding, which is not conducive to the development of the project. Enterprises can take the following measures: in the early stage of audit, conduct qualification audit on companies participating in bidding and formulate clear bidding standards. In the audit process, ensure the fairness and justice of bidding, prevent the phenomenon of missing bids, and set up a supervision mechanism for bidding companies. After the audit, the company that won the bid will be audited for the second time, and there will be strict requirements when making the contract. Strict examination of bidding companies is beneficial to the cost control and management of petrochemical production equipment construction projects. It is hoped that the project can be completed at one time through the above methods.

3.2 Do a good job in risk assessment and emergency measures

Do a good job in project evaluation before accepting related projects. Some projects suffer losses due to inadequate preparation and evaluation before construction, so a special company risk assessment unit should be set up. Appraisers are also required to go deep into the grassroots level when evaluating projects, and cannot make insufficient evaluations because of grassroots factors. After various technical considerations and evaluations, the appraiser estimates the risk value of the project according to the specific results, decides whether to accept the project, and reserves funds according to the investigation results after accepting the project to prevent the turnover from being ineffective during the project. However, in order to prevent the waste of funds, every flow of funds must be strictly examined. Good project evaluation and capital flow inspection are very important for an enterprise, and sometimes they are the key to its development. Before the project starts, the possible problems of the project should be investigated and emergency measures should be taken to avoid economic losses caused by tight time and improper emergency treatment measures. For example, the temporary replacement of the person in charge of the project can allow the new person in charge to contact before the project is implemented. Such emergency measures should be designed before the start of the project, so that even if there is a gap in the design in advance, there will be a good reference, which is conducive to the planning of emergency time plan.

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