1. Connotation of project cost and target cost
1. 1 The connotation of project cost refers to the sum of the actual expenditure and the expected expenditure of fixed assets investment expenses in the project construction, which is the price of the project, including equipment expenses, technical labor expenses, towel yard transaction fees, etc.
1.2 The connotation of target cost is the estimated cost set to realize the expected profit target of enterprises and enterprises. It is the product of target management and cost budgeting, and its manifestations are various, such as norm cost, standard cost or planned cost. Compared with the actual cost, it is scientific and reasonable.
2. The present situation of decoration engineering cost management
Due to the relatively late implementation of the project cost management model in China, although a series of regulations and meanings have been promulgated to close the T-process cost management, the amount has been limited. However, for China's decoration engineering, which is a new project separated from installation engineering and construction engineering, due to the variability and diversity of its materials and contents, the quota standard of decoration engineering has not yet been formulated, which leads to no basis for the management of engineering cost and causes serious problems to technicians. Specifically, it is mainly reflected in the following aspects:
2. 1 irrationality of decoration engineering In today's society, people have higher and higher requirements for their own living environment and working environment, which means higher and higher requirements for decoration engineering. The goal that people expect to achieve is to create a comfortable environment for the owners with the lowest cost. However, comprehensive projects rarely involve the formulation of budget, which leads to many contents of the project not being carried out reasonably and effectively. Technicians focus on meeting aesthetic requirements, resulting in partial or serious damage to the main frame structure of the building. The final result is that the building is unsafe and the cost is unreasonable. Moreover, in the design process of many decoration projects, the information provided by the drawings is not comprehensively considered, and the construction is carried out at will, and there is no effective and reasonable budget for the construction cost, which further leads to the inability to effectively control the target cost.
2.2 There is unfair competition, which leads to the failure of cost budget. At present, it has not been well developed in comprehensive projects, and the quota gap of decoration projects is very different from the market price, which leads to unreasonable cost budget. Moreover, in the process of construction, some people deliberately raise the cost or lower the price, which brings great interference to the control of the target cost. Moreover, some units get the bidding project at a low price, but they use inferior materials in the construction process, which will have a negative impact on the decoration industry. Or the tenderer keeps lowering the project price, which makes some bidders get the construction right of the next day in the form of sincere capital, resulting in unreasonable materials often appearing in the decoration construction process, which has a serious impact on the quality of the decoration project.
2.3 There are many kinds of decoration materials, and the market is disorderly. With the development of social economy and science and technology, the types of materials used in decoration are endless, both at home and abroad, and the quality is also seriously different. Coupled with the disorder of the market, material managers can't identify the quality of materials well in the process of purchasing. Such as marble and granite, the price per square meter in the market can range from a few hundred to more than a thousand, and the quality is true or false. If it cannot be effectively identified, it will also cause serious losses. Based on the large proportion of material cost in decoration engineering projects, if it is not properly controlled, it will lead to the inability to effectively control the target cost. There is also the unreasonable pricing of secret construction organizations and the procurement of materials through improper channels, which leads to the failure to effectively guarantee the quality of materials used.
2.4 There is no comprehensive regulation on engineering valuation. The difference in engineering design is due to the large amount of materials needed for decoration, which also makes the material industry constantly innovate to meet the market demand. However, the current budget activities of decoration are not carried out according to the quota, and the price information of many materials is not comprehensive. At the time of settlement, there will be some problems in procedures and bargaining, which will make the target cost unable to be effectively controlled. Based on the above problems, it is very necessary and urgent to manage the decoration cost. Specific management measures are as follows.
3. Specific measures to strengthen the cost management of decoration engineering.
3. 1 Set the target cost on the basis of setting the target and control it effectively, so as to strengthen the cost management. In the process of decoration engineering activities, we must follow the principles of beauty, applicability, economy and safety. In the operation of the market, the premise is equal competition and fair trade, and the goal is to reduce costs and seek profits. The means to achieve this goal is mainly through the management of the goal. The following aspects need to be considered in the formulation of target cost: hardware equipment, supply of raw materials, value of the project, productivity of workers, market price, market demand of the project, etc. The analysis of target cost is mainly completed by the construction unit before bidding to minimize the cost, but its premise must be to promote the management of target cost with reference to market demand, internal conditions of the company and raw material market. And strengthen the accounting of internal costs of enterprises, so that all staff pay attention to costs, better implement the economic responsibility system, and fully mobilize the enthusiasm of employees with the incentive system, so as to achieve the purpose of effectively reducing costs. Furthermore, the target cost can also be used as the basis for comparative analysis of effective costs to find out the reasons for cost differences. Pay special attention to projects that seriously deviate from the target cost. The implementation of target cost management can promote the coordination and cooperation of employees in construction enterprises and strive for effective cost reduction.
3.2 Strengthen the quality of target accountants and strictly supervise cost accounting. In order to improve the effectiveness of target cost accounting, the quality of accounting personnel is very important. For accounting personnel who are not skilled in operation or know little about related businesses, enterprises must carry out strict training and assessment to improve their comprehensive quality and ability. In addition, the cost accounting should be strictly supervised to avoid serious interference caused by public-private distinction or abuse of power. It can be seen that it is very important to improve the requirements for accountants and strictly supervise the target cost accounting for project cost management.
3.3 Reasonable calculation and strict control of the project cost are very important to improve the market share and market competitiveness of decoration projects. At the same time, effectively reducing the construction cost is also the basis for promoting the long-term development of enterprises. The control of project cost can be divided into pre-construction control and post-construction control. The most important stage is the bidding period. When bidding, the name, model, quantity and specifications of the specified materials must be specified in detail, and the small and clear ones should be pointed out in detail, and all aspects of construction should be fully explained. The control of various costs will have a direct impact on the project cost. In decoration engineering, materials account for a high proportion of the project cost, and materials are the basic guarantee of the project quality, so materials have a great influence on the final effect of decoration. Therefore, in order to effectively reduce the construction cost, or avoid the waste of expenses caused by rework of unqualified materials again, materials must be tested before construction.
4. Conclusion As a new technical project, decoration has attracted more and more attention. In order to promote the smooth progress of construction, we must strictly control the project cost and implement it in all aspects of construction, with the minimum cost as the ultimate goal and avoid unreasonable use of funds. Therefore, project cost management and target cost control should be the key work of decoration engineering in the later period to promote the rapid and stable development of decoration engineering.
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