Project Management Project Cost Management of
Project Cost Management
project cost management is to ensure that meet quality, schedule and other contract
requirements under the premise of the project implementation process De expenses
occurred, through planning, organization, control and coordination of activities
intended to achieve cost targets and inclusive as possible reduce the cost of a science
of management activities, it is mainly through technology (such as the construction
program of Zhidingbixuan), economy (such as accounting) and management (such as
construction management, rules and regulations, etc.) activities to achieve targets and
achieve profit objectives.
course of project construction cost is the sum of all 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 the number of persons
prepared to put the project if the contract price of labor cost surround.
② material costs account for a great proportion of Kin Fei, should be accurate grasp
of focus were the main materials, flooring, DPM, other materials of each item,
re-supply of approved materials 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 the actual operation of concrete to be mixed with a certain
amount of additives and so on.
③ Mechanical royalties: Tender facilities group in the machinery and equipment
type, quantity generally of scale in the construction methods set counted out, and the
site actual construction has some differences in efficiency are also different, Therefore,
the actual measurement will happen to the 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 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
Shi of construction design, combined with the project location's economic, natural
and geographical conditions, construction techniques, equipment selection, duration
of the actual situation of the arrangements was compared in groups of facilities and
construction methods used during the preparation of the different bids, or and fixed in
the different construction methods in order to truly make the right prediction.
1.3 aided engineering costs forecast
is the auxiliary quantities of quantities or drawings are not given, but is
indispensable for construction, for example,% D % A
concrete mixing plant, tunnel construction in the three two-lane, high-pressure hole,
etc., also need to make light of the specific conditions of facilities group forecast.
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, to determine how much
equipment the size of the temporary facilities and standards, 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
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
% D % A analysis, usually come from the following aspects were analyzed:
1) on the project knowledge of technical characteristics, such as structural features,
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, by 上述 several main cost is an estimate, you can determine labor, materials
and machines and indirect costs control standards can be determined to be more
long-term employment completed during the period of the project, to complete goal of
control of management fees. Therefore, the cost projections are the basis for cost
2 around the cost objectives, establishing the principle of the construction project
cost control, 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 the objectives of the project cost achieved.
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 project construction is to use 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, to optimize the construction program , from scientific management
to improve the level of the project to start to achieve savings.
2.2 overall control of the principle of
comprehensive control principles, including the two meanings, that full control and
full process control.
1) project full control
cost control, project organization involved in all sectors, team and staff, and with the
vital interests of every employee, and therefore each department should be fully
mobilized, team and every employee to control costs, care costs of enthusiasm, really
establish full control awareness, if we think the cost of control is only Fuze pre,
clearing and financial aspects of things, a one-sided.
2) 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, through the construction
process to After completion of the transfer of the end of the warranty period.
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.
3) 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.
4) the principle of dynamic control
cost control is a constantly changing environment of management activities, it must
adhere to the principle of dynamic control, the so-called dynamic control is to work,
materials and machines, into the construction process, the cost to collect the actual
value that occurred will be compared with the target, check for deviation, without
deviation, then continue, or to find out the specific reasons, 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 this paper, items from
www.5udoc.com [worry documentation] to collect and organize, for the original
author! Project implementation process are "exceptional" cases usually have the
1) Importance: general view from the amount of significance on the difference, it
called "exceptional" costs the difference between 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 result in two situations:
One is a sub-part follow-up projects or adversely affect the operation: Another One
is caused by low quality, except possibly with a
to rework and increased warranty costs, quality and cost control also affect corporate
2) consistency: Although some cost difference while not exceeding the prescribed
percentage or minimum amount, but has been in the control
line hovering around the minimum and maximum line should be as as "exceptions."
Means that the original cost estimate may not be accurate, should, and
when adjusted according to actual situation.
3) control: Some project managers can not control the cost of the project, even if a
should be treated as "exceptions", such as land acquisition, demolition , temporary
rise in rental costs.
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
method of reducing the cost of a variety of projects, can be summarized into
organizational, technological, economic, and other aspects of contract management
take measures to control.
3.1 to take organizational measures to control costs and
Project Management Team must first clear institutional arrangements and staffing,
clear, project management department, company or construction relationship between
the terms of the division teams. 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 to seek more economical and reliable program,
thus reducing the project cost, including the introduction of new materials, new
technologies, new processes save energy, improve the mechanical manipulation.
3.3 economic measures taken to control costs and
to take economic measures to control the project cost, including:
(1) labor cost control: the total labor costs a larger percentage of project costs,
usually about 10%, so we must 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
(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 techniques and new materials. 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 enhance
on-site equipment repair, maintenance, reduce repair, recurrent expenditure on repairs,
the fees and avoid improper use to develop mechanical equipment idle; strengthen 租
赁 equipment planning the management of full use of social machinery Zi Yuan Xian
Zhi from different angles lower Jixietaiban price. From an economic point of control
cost of the project include the departments involved in cost control measures and
3.4 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 of self personnel at
all levels, fixed, 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 once qualified, to eliminate rework occurrence, to avoid unnecessary
because of human, financial, material and other inputs to increase the number of the
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 we pay
close attention during the execution of the contract to fulfill the contract Advances in
effect 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 www.5udoc.com [worry documentation] to collect
and organize, for the original author! / Center&gt;