Project cost of project cost management

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					Project Cost Project Cost Management

 project cost management of

  Summary: The project cost management is to ensure that meet quality, schedule and
other contract requirements of the premise, occurred in the course of project
implementation costs, through the planning, organization, control and coordination
activities to achieve the cost targets intended, and as far as possible reduce the cost of
a science of management activities, it is mainly through the Jishu (such as the
construction of the development program comparison), economic (such as accounting)
and management (such as construction management, rules and regulations, etc.)
activities to reach targets and achieve profit objectives.
  Keywords: engineering projects; cost management; cost projections; Project
ectquality,       timepremises,        hastheexpensetotheprojectimplementationprocess,
throughactivitiesandsoonplan,                                               organization,
itmainly               (forexampleplanofconstruction'sformulationcomparedtochooses),
theeconomythroughthetechnology           (forexamplecalculation)      andthemanagement
( forexampleconstructionorganizationmanages, eachrulesandregulationsandsoon)
tomoveachievesthepredeterminedtarget, realizestheprofitgoal.
keyword: Engineeringproject; Costmanagement; Costforecast; Projectconstruction

 foreword project construction cost is the sum of various cost. Cost Management
covers a wide range of project management activities throughout the entire process
and every aspect, from the beginning to the construction project contract bid
preparation, site construction, until final acceptance, were all inseparable from the
cost management of cost management work process is complete, which usually
involves: cost prediction, cost control, cost accounting, cost analysis and cost
assessment and so on. Following the work of the project only in respect of the cost
projections, cost control, cost effective way to illustrate the three aspects cited.
 1 do a good job cost projections to determine the cost-control objectives
 cost estimate is based on the cost plan for the establishment of a scientific and
rational basis for cost control objectives. Therefore, the cost projections on the cost of
programs to improve science, reduce costs and improve economic efficiency, has an
important role. Better cost control, cost forecasting the first grasp. Cost prediction is
mainly the use of scientific methods, combined with the price under the terms of the
purpose of construction, mechanical equipment, personnel quality objectives such as
the cost of the project to predict.
 1.1, materials and cost forecast
 ① analyzing the project with unit labor costs, then the level of wages and social
services in the market conditions, according to the duration and number of personnel
preparation of the input engineering contract price of labor cost is surround.
  ② material costs account for a great proportion of Kin Fei, should be accurate grasp
of focus were the main materials, flooring, DPM, exhaustive analysis of other
materials were re-approved material supply location, purchase price , transportation
and handling charges, provided analysis of fixed material specifications and the actual
specifications of the different materials used, compared with the ratio of the actual use
of a fixed amount of cement content and the differences, pooled analysis of the budget
of other materials, in concrete practical in a certain amount of additives to be mixed
and so on.
  ③ Mechanical royalties: Tender facilities group in the machinery and equipment
type, quantity usually use fixed in the construction methods set counted out, and the
site actual construction has some differences, efficiency, there are also different, and
therefore measure the actual will take place machine to charge. At the same time, have
to calculate possible machinery rental fees and purchase of new machinery and
equipment required fee amortization expenses, on the main mechanical re-approved
Taiwan class production quotas.
  1.2 aided engineering costs forecast
  is the auxiliary quantities of quantities or drawings are not given, but is
indispensable for construction, for example,
  concrete mixing stations, tunnels Construction of three two-lane, high-pressure hole,
etc., also need to make light of the specific conditions of facilities group forecast.
  1.3 construction plan of a cost forecast
  project after winning a bid, must be integrated with the actual situation of the
construction site to develop technically feasible and economically reasonable
advanced real-
  Shi of construction design, combined with project where the economic, natural and
geographical conditions, construction techniques, equipment selection, duration of the
actual situation of the arrangements, was compared groups of facilities and
construction methods used during the preparation of the different bids, or fixed in the
construction method different to truly Zuochu correct prediction.
  1.4 Prediction of large-scale facility fee
  forecast of large-scale temporary work expenses should be carefully investigated and
fully demonstrated than in the election to determine a reasonable target.
  1.5 small facility fee, transfer fee site prediction
  small facility fee includes: erection of temporary facilities is necessary, the length
and duration of the proposed investment in personnel and equipment to determine the
number of temporary facilities scale and standard, according to the actual construction
took place in the lump sum of previous historical control data to determine the target
value. Site transfer fee should be based on the distance and to be transferred from the
transfer of personnel, equipment, forecast the number of the approved target.
  1.6 runaway cost of risk prediction
  goal of the project cost risk analysis, is implemented in this project may affect the
achievement of objectives in advance
 analysis, usually carried out from the following aspects Analysis:
 1) on the project knowledge of technical characteristics, such as structural features,
geological characteristics.
 2) of the owners of units in the analysis of the situation, including the owners of
units of credit, availability of funds, organization and coordination ability.
 3) on analysis of project organization within the system, including the facilities
group design, resources and equipment, the quality and so on.
 4) of the project site's traffic, energy, power analysis.
 5) of the climate analysis.
 short, through some major cost of these forecasts, you can determine the work,
materials, machines and indirect costs of control standards can also be determined to
be more long-term employment during the completion of the project, to complete the
objectives of management fees control. Therefore, the cost projections are the basis
for cost control.
 2 around the cost objectives, establishing the principle of cost control, project cost
control is in the implementation process of the resources invested in the construction
process and results of monitoring, inspection and measurement, and to take measures
to ensure that the project cost goals.
 is the object of cost control project, the subject is human management activities
aimed at the rational use of manpower, material and financial resources, reduce costs
and increase efficiency. To this end, the general principles of cost control are:
 conservation principle is the conservation project for Construction of human,
material and financial savings, the basic principles of cost control. Save absolutely
 is a negative restriction and supervision, but to actively create conditions to focus on
the cost of pre-monitoring, process control, in the implementation process often check
out the deviation, in order to optimize the construction side to this paper Since [worry document] collection and sorting, for the original author!
Case, from raising the level of scientific management of the project to start to achieve
 2.2 overall control of the principle of
 full control principles, including the two meanings, that is, full control and full
process control.
 1) Project Control
 full cost control, project organization involved in all sectors, team and staff, and with
the vital interests of every employee, and therefore should be fully mobilized for each
department, team and every employee cost, interest cost of the initiative and really
establish the concept of full control, if that cost control is only responsible for pre-,
clearing and financial matters, on a one-sided.
 2) target control principles

  goal of management is to manage the activities of the basic techniques and methods.
It is the policy of the scheme, tasks, goals and measures to be implemented one by
one decomposition. In the course of the implementation of management by objectives,
targets set should be realistic, the more specific the better, to be implemented in
departments, teams and groups and even individuals; target's responsibility to fully,
we must have work responsibilities, there must be cost responsibility; do
responsibilities, rights and interests combined with the responsible departments
(human) inspection and evaluation of performance, and with their wages, bonuses, do
give rewards and punishments.
  3) the whole process of project cost control
  of the project cost to the project involving the entire cycle, the whole process of the
formation of project costs, from construction ready to begin, after completion of the
construction process to the end of the warranty period after the transfer. Therefore,
cost control will accompany each stage of project construction, such as the
preparation phase of construction to develop the best construction plan, in accordance
with the design and construction Guifan construction, full use of existing resources,
reduce the construction cost expense and ensure that project Zhiliang reduce project
rework costs and construction costs after the transfer of warranty. The transfer of
project acceptance stage, the contract price to handle additional projects and timely
settlement, so that cost of the project from start to finish in effective control.
  4) the principle of dynamic control
  cost control is carried out under the changing environment of management activities,
it must adhere to the principle of dynamic control, dynamic control is the so-called
labor, materials and machines, into the construction process to collect the actual value
of the cost occurred will be compared with the target, check for deviation, without
deviation, then continue this life in China from the network
Otherwise, to find specific reasons, to take corresponding measures. Implementation
of cost control process should follow the "exceptional" management approach, the
so-called "exception" refers to the project construction activities that do not often
appear, but the key issue of cost targets on the successful completion of a major
impact, it must be highly valued. In the project implementation are "exceptional"
circumstances often have the following aspects:
  1) Importance: general view from the amount of significance on the differences
before called "exceptional", the cost difference between the gold
  determination of the amount should be determined in accordance with
project-specific differences in accounting for the percentage of the original standard.
Differences between sub-beneficial and non-
  benefit differences. Less than the standard cost of the actual costs incurred are not
necessarily a good thing too, it might rise to two situations:
  One is a sub-part follow-up projects or adversely affect the operation: the other is
caused low quality, except possibly with a
  to rework and increased warranty costs, quality and cost control also affect corporate
  2) control: Some project managers can not control the cost of the project, even if a
significant difference,
  should be treated as "exceptions", such as land acquisition, demolition, temporary
rise in rental costs.
  3) Consistency: Although some cost difference while not exceeding the prescribed
percentage or minimum amount, but has been in the control
  line hovering around the upper limit line should be treated as "exceptional." Means
that the original cost estimate may not be accurate, and
  to when adjusted according to actual situation.
  4) specificity: the whole construction process where the project has affected the cost
of the project, even if the difference did not reach the status of importance should also
be close attention to cost management. Such as mechanical maintenance costs
one-sided emphasis on savings. Although in the short term cost may be lower and
lower, but due to lack of maintenance may result in future repair work stoppage,
which affected the smooth progress of construction production.
  3 to find effective ways to achieve cost control objectives
  reduce the project cost of means, can be summed up as organizational, technical,
economic, contract management measures to control several aspects.
  3.1 organizational measures taken to control costs and
  Project Management Team must first clear institutional arrangements and staffing,
clear, project management department, company or authority relationship between the
construction team division. Project Management Department is operating
management team, project manager of enterprise legal person designated as his
representative managing the project team, line after the disintegration of the project is
completed, so he is not an economic entity, should the overall interests of the
responsible office, should be coordinated with good company between the companies
of responsibilities, rights and interests of the relationship.
  followed by those who want to cost control and a clear mandate so that it was
responsible for cost control to avoid the large costs, and costs over a project deficit of
responsibility are obscure.
  3.2 to take technical measures to control costs and
  technical measures taken to give full play during the construction phase is the
technical staff's initiative, the main technical program of the tender for the necessary
technical and economic feasibility studies, to seek more economical and reliable
program , thereby reducing the cost of the project, including the introduction of new
materials, new technologies, new energy saving technology, improve the mechanical
  3.3 to enhance the quality of management, control, rework rate
  during the construction process, to strict quality engineering, and always carry my
bureau, "to fine, sincere, better, update the" quality policy, quality at all levels self
personnel designated, Placement, will be responsible for strengthening the quality of
the construction process and management of self really put into the process, to take
preventive measures to eliminate the common problem of quality management, so that
project a shape, a qualified, eliminate rework phenomena to avoid unnecessary
because of human, financial, material and other inputs to increase the number of the
project cost.
  3.4 economic measures taken to control costs and
  to take economic measures to control the project cost, including:
  (1) control labor costs: labor costs account for a larger percentage of total project
cost is generally 10% as such, it is necessary to strictly control labor costs. The
number of control from the employment, targeted to reduce or shorten some of the
processes of man-days consumption, thereby reducing man-days over consumption,
control project costs.
  (2) the control of materials: materials engineering fees generally total 65% to 75%,
direct impact on project cost and economic benefits. General practice is in accordance
with the amount of the principle of separating price, mainly done in two areas of
  1 is a material amount of control: first, to uphold the consumption of material was
fixed, the implementation of quota in the materiel system: the second is to improve
construction technology, promote the use of reduced material consumption of a
variety of new technologies, new processes, new material. Then there are the
engineering functional analysis, performance analysis of materials, sought to use
cheap materials instead of expensive materials to strengthen the material flow
management, to extend the working frequency.
  second is to control the price of materials: mainly by the procurement departments in
the procurement of control. Firstly, to investigate market conditions, the premise of
quality and quantity, shop around, preferred for purchase of materials: rational
organization, followed by transport, the nearest purchase of materials, use the most
economical mode of transport to reduce transport costs: Another thing to consider
bonus time value, less funds used, set reasonable purchase volume and batch, to
minimize material reserves.
  (3) Mechanical fee control: do construction management to reduce the amount
consumed Jixietaiban, by all reasonable construction, mechanical deployment and
improve the utilization of machinery and equipment and good rate, while
strengthening the on-site equipment maintenance work, reduce the overhaul, repair,
and other recurrent costs of the expenses caused by mechanical equipment to avoid
the improper use of the idle; to strengthen the management of leased equipment
program, make full use of idle machinery of social resources, reduce Jixietaiban
prices from different angles . From an economic point of control cost of the project
include the departments involved in cost control measures and personal rewards.
  3.5 to strengthen contract management, control costs and
  construction contract management is an important part of enterprise management,
but also reduce the project cost, effective way to increase economic efficiency. Project
construction contract management, contract negotiation time frame from start to the
end of the warranty date, in particular, strengthen the construction process, contract
management, contract management grasp attack and defend, attack means that during
the execution of this thesis in the contract, from www. [worry
documentation] to collect and organize, for the original author! Pay close attention to
the progress of our results to fulfill the contract in order to prevent the other claims.
Contract management tasks every day to study the merits of the contract by, in
between the lines and keep the chance of attack measures. In short, the cost is forecast
to cost the establishment of behavioral goals, cost control have targeted: not to cost
control, cost forecasting there will be lost meaning, there can be no talk about cost
management, and the two complement each other, so in theory should be thoroughly
research, practice in full swing, firmly and effectively to those in the work. This paper
from [worry documentation] to collect and organize, for the original
author! / Center>