The construction cost determines the benefit of the project and has a great influence on the integrity of the project. The problem of project cost has always been the focus of attention of construction units and users. The following is what I collected for you. Welcome to read the reference!

On the Effective Measures to Control the Cost of Construction Projects

In order to strengthen the management of construction project cost and improve the efficiency of capital use, the project cost should be reasonably determined according to the relevant regulations in the bidding stage. After winning the bid, a fair and reasonable contract shall be signed to determine the contract price of the project; In the project implementation stage, it is necessary to effectively control the project cost and implement the whole process and all-round management of the project cost. This paper analyzes the project cost control which has great influence on the project cost in the design stage, bidding stage, construction stage and completion settlement stage.

Keywords: project cost; cost control

In the construction project management, how to effectively manage the project cost and reduce the project cost under the premise of ensuring the project quality is a concern of the project cost departments and investors at all levels. At present, the understanding of project cost is different. Generally speaking, there are two kinds: one refers to the sum of the costs required to complete a construction project, including construction costs, installation costs, installation costs and other related costs, and in essence refers to the construction costs of construction projects, that is, the capital investment of construction projects. The second refers to the contract price of the contracted project. The contents of the contract include construction, installation and broader "turnkey" projects, including construction and installation, but mainly refer to the contract price of the building. In order to meet the needs of the socialist market economic system and the whole process of project management of construction projects, it is necessary to reasonably determine and effectively control the cost of construction projects, improve the level of project cost compilation and reflect the actual cost of projects. In order to effectively control the project cost, we must do the following:

1 Fair competition and reasonable bidding

The purpose of fair and reasonable bidding is to make the project cost more reasonable after competition, arrange the project plan reasonably and control the project cost effectively. The project cost of the construction project through bidding is more reasonable, and it can also be said that bidding is also a new economic contract system within the scope of capital construction. Therefore, in the bidding process, there should be clear transparency, so that the tendering units can be clear-headed and comfortable in the bidding work, and some unfavorable bidding factors should be restricted to truly reflect the implementation of fair competition in the economic market, and construction units with real technical strength, strong technical strength and quality awareness in engineering construction, good quality and considerable engineering construction experience should be invited to bid. After the project bidding, the winning bidder must sign a construction contract before the construction, so the project cost will also increase.

1. 1 Cost control in project bidding process

1. 1. 1 The principle of fairness, openness, impartiality and good faith should be followed in the bidding work. Before bidding, the qualification of the construction unit should be strictly examined, and if necessary, on-the-spot investigation should be conducted to avoid abnormal phenomena such as "super-grade enterprise bidding, first-class enterprise subcontracting and second-class enterprise entering the site", which is very unfavorable to the project cost control.

1. 1.2 Prepare the bidding documents. Cost management personnel should collect, accumulate, screen, analyze and summarize all kinds of valuable information, identify, analyze and evaluate all kinds of factors that affect the project cost, and then compile bidding documents in combination with the actual situation of the project.

1. 1.3 The bidder with reasonable low price wins the bid. As the owner, we should put an end to blindly seeking the bid with absolute low price, so as to avoid the malicious competition of bidders at a price lower than the cost price. The so-called reasonable low price is a reasonable low price under the premise of ensuring quality and construction period.

1.2 do a good job in signing contracts.

According to the contents of the contract, clearly stipulate the terms and expenses involved in the contract, such as the construction period, the way of price settlement, and the handling of breach of contract disputes. In the process of signing the contract, we will try our best to obtain the contract terms that are conducive to reasonable low price through negotiation for the unclear and unspecific contents in the bidding documents and design. At the same time, correctly predicting the factors that may cause claims in the construction process is forward-looking for claims and effectively avoids excessive claims. In addition, we should strive for risk control measures such as project insurance and project guarantee, so that risks can be properly transferred, effectively dispersed and reasonably avoided, and the control effect of project cost can be improved. Engineering guarantee and engineering insurance are effective measures to reduce engineering risk losses and compensate disputes.

2 cost control in the design stage

2. 1 Conduct design bidding and select the best design unit.

Actively promote the design bidding scheme combining architectural scheme with economic scheme, try to put the main body of the project, supporting accessories and greening together for bidding, take multiple bids, and organize relevant experts to make comprehensive evaluation. This can not only optimize good design units, but also promote designers to innovate in the overall layout of the project and the use function of architectural modeling, strive to reduce the project cost, carry out energy-saving design, and control the use cost of the building in the process of use, which is also an extension of the principle of controlling the project cost.

2.2 quota design, effective cost control.

Actively carry out quota design and improve the economic responsibility system for design. Designers should be familiar with the budget quota, cost quota and budget price of building materials, then control the preliminary design and budget estimate according to the project investment estimate, and then control the construction drawing design and budget estimate with the preliminary design budget estimate. Therefore, under the premise of ensuring the function and technical indicators, each major must formulate a win-win strategy, rationally decompose and utilize the investment limit, integrate the construction drawing design and construction drawing budget, and organically combine technology and economy. Strictly control design changes to ensure that the investment limit is not easily exceeded. The project cost management personnel of the engineering construction department should actively cooperate with the entrusted design department to provide reliable basic engineering data in time.

2.3 Use contract measures to effectively control costs.

In the economic clause of design contract, the limit clause of design change and modification cost is added. If the design change fee exceeds a certain proportion of the construction contract price, such as 5%, a certain proportion of design fee and design quality deposit will be deducted. Taking a certain binding force is a measure to control design specifications, design standards, engineering quantities, budget estimates and other aspects.

Cost control in the process of project implementation is very important. Cost engineers should fully grasp and use the bidding documents, contract agreements and related design and construction documents. Based on the reasonable bill of quantities, we should grasp the key links of measurement and payment, carefully examine the payment application, and make every sum of funds be controlled and paid reasonably. In the process of project implementation, cost engineers should not only control all kinds of costs, but also master the national laws and regulations on project cost, collect all kinds of price information, understand the price dynamics, and sort out and analyze all kinds of cost information.

3. 1 Do a good job in contract management and reduce engineering claims.

In the construction stage, the key to cost control is to effectively control engineering changes. In view of the current bill of quantities quotation, the construction unit often adopts the way of "winning the bid at a low price and claiming profits" to undertake the project. As the owner's cost management personnel, they should check in advance, actively monitor and strictly review the engineering changes, calculate the impact of each change on the total investment, and determine whether it is necessary to make engineering changes from the perspectives of use function, economy and aesthetics, so as to reduce unnecessary engineering costs and avoid out-of-control investment; In addition, the construction units and material suppliers who fail to fulfill the agreed obligations will be counterclaimed in time, so that the cost can be effectively controlled.

3.2 Starting from the management mode, establish the project supervision system and pursue the effective control of project investment. According to the supervision regulations and implementation rules, improve the division of responsibilities and related systems, implement responsibilities, and establish and improve the investment control system from the project management mechanism. At the same time, do a good job in reviewing the monthly progress payment to avoid out-of-control investment. In the review of project progress payment, the project quantity determined by the supervisor shall be paid according to the valuation basis agreed in the contract, and the corresponding project progress payment shall be paid after checking the price with the material unit price and cost quota.

3.3 Effectively control the project investment from the technical measures.

On the basis of demonstrating the main construction technical scheme, new materials, new processes and new methods are widely adopted, and every effort is made to effectively control the project investment. Technical measures are the necessary guarantee for project investment. According to statistics, material costs generally account for about 70% of direct engineering costs. At the same time, the level of direct cost affects the level of indirect cost. Therefore, the selection of new technologies and materials is a powerful guarantee to improve labor productivity and shorten the construction period.

3.4 Effectively control the project investment from the economic measures.

Strictly control the on-site funds and headquarters management fees, and rationally use advertising planning fees and sales agency fees. , reduce sales costs and minimize static investment.

4 Cost control in the completion stage

This stage is the last stage of cost control. According to the contract, budget and cost quota, completion data and relevant national or local laws and regulations, carefully review the payment of project funds. According to the policy, verify the engineering quantity of the final accounts submitted for approval, and implement the visa fee of the contact form, so that the audited settlement can truly reflect the actual project cost.

5 concluding remarks

For a long time, it is customary to put cost control in the construction implementation stage. In fact, investment control, construction period control and quality control are interrelated, and there is a dialectical relationship of unity of opposites. To do a good job in investment control, we must do a good job in the quality and progress of the project. Therefore, project cost, construction period and quality are complementary issues. Project cost control is a comprehensive subject integrating economy, technology and management. Only by comprehensively evaluating all parties can the project cost be directly and effectively controlled.

refer to

Taoyi. Have a comprehensive understanding of the project cost. China Electric Power Press. [2] He Baizhou. Construction project contract. Intellectual property publishing house.

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