Cost is the sum of all kinds of expenses in the process of project construction. The content of cost management is very extensive, running through the whole process and all aspects of project management activities. From project signing to construction preparation, site construction and completion acceptance, every link is inseparable from cost management. As far as the complete workflow of cost management is concerned, its contents generally include: cost prediction, cost control, cost accounting, cost analysis and cost assessment. The following only talks about cost prediction, cost control and effective ways to reduce the cost of work items.

1 Make a good cost forecast and determine the cost control target.

Cost forecast is the basis of cost planning, which provides a basis for formulating scientific and reasonable cost control objectives. Therefore, cost forecasting plays an important role in improving the scientificity of cost planning, reducing costs and improving economic benefits. To strengthen cost control, we must first grasp the cost forecast. The content of cost prediction is mainly to predict the cost target of the project by using scientific methods, combining with the bid price and according to the construction conditions, mechanical equipment and personnel quality of each project.

1. 1 labor, materials and cost forecast

(1) Firstly, analyze the unit price of labor cost adopted by the project, then analyze the wage level of workers and the market situation of social services, and analyze whether the labor cost is included in the contract price of the project according to the construction period and the number of people who are ready to invest.

(2) Material costs account for a large proportion of construction and installation costs, which should be accurately grasped as the key point. The cost of main materials, ground materials, auxiliary materials and other materials should be analyzed item by item, and the supply location, purchase price, transportation mode and handling fee of materials should be re-approved. The difference between the material specifications specified in the quota and the actual material specifications should be analyzed, and the difference between the actual cement dosage and the quota dosage should be compared. Other material costs in the budget should be summarized and analyzed, and a certain amount of admixture should be added to the concrete in actual operation.

(3) Machinery use fee: The model and quantity of the bidding group's machinery and equipment are generally calculated by the construction method in the quota, which is different from the actual construction on site and has different work efficiency, so the actual machinery cost needs to be calculated. At the same time, it is necessary to calculate the possible machinery rental fee and amortization fee for newly purchased machinery and equipment, and re-approve the machine-team output quota of main machinery.

1.2 cost change forecast caused by construction scheme

After winning the bid, it is necessary to formulate technically advanced, feasible and economical facts in combination with the actual situation of the construction site.

The construction organization design combines the economic, natural, geographical conditions, construction technology, equipment selection, time limit for a project and other actual conditions, and compares the construction methods adopted by the construction team with those adopted in the preparation of tenders or quotas, so as to make correct predictions according to the facts.

1.3 auxiliary engineering cost forecast

Auxiliary quantities refer to quantities that are not given in the bill of quantities or design drawings, but are indispensable in construction, such as

Concrete mixing station, tunnel construction with three pipes and two lines, high pressure entering the tunnel, etc. , but also need to make specific and practical predictions according to the implementation of the group.

1.4 Large temporary facilities cost forecast

The forecast of large-scale temporary work expenses should be investigated in detail, compared and demonstrated fully to determine a reasonable target value.

1.5 small temporary facilities fee and site transfer fee forecast

Small temporary facilities fees include: for the erection of temporary facilities, the scale and standard of temporary facilities should be determined according to the length of construction period and the number of personnel and equipment to be invested, and the target value should be determined according to the actual situation and referring to the historical data of contract control in previous engineering construction. The site relocation fee shall be determined according to the relocation distance and the number of personnel and equipment to be relocated.

1.6 cost out-of-control risk prediction

The risk analysis of the project cost target is the factors that may affect the realization of the target in advance in this project.

Analysis, usually can be analyzed from the following aspects:

1) Understand the technical features of the project, such as structural features and geological features.

2) Analysis of relevant information of the employer, including the credit of the employer, the availability of funds, the ability of organization and coordination, etc.

3) Internal analysis of project organization system, including organization design, resource allocation, team quality, etc.

4) Analysis of transportation, energy and electricity of the project location.

5) Climate analysis.

In short, through the prediction of the above-mentioned main expenses, we can determine the control standards of labor costs, material costs, machinery costs and overhead costs, and also determine how long the project must be completed to achieve the target control of management fees. Therefore, cost forecasting is the basis of cost control.

2. Establish the principle of cost control around the cost target. Construction project cost control is to supervise, inspect and measure the resource input, construction process and achievements in the implementation process, and take measures to ensure the realization of project cost objectives.

The object of cost control is engineering projects, and the main body is human management activities. The purpose is to make rational use of manpower, material resources and financial resources, reduce costs and increase benefits. To this end, the general principle of cost control is:

2. 1 saving principle

Saving is the saving of manpower, material resources and financial resources for project construction, and it is the basic principle of cost control. Saving is definitely not.

It is a kind of negative restriction and supervision, but we should actively create conditions, pay attention to cost supervision and process control in advance, and often check whether there is deviation in the implementation process, so as to optimize the construction scheme and realize saving by improving the scientific management level of the project.

2.2 Total amount control principle

The principle of total control includes two meanings, namely total control and whole process control.

1) project master control

Cost control involves the work of all departments, teams and employees in the project organization and the vital interests of each employee. Therefore, we should fully mobilize the enthusiasm of every department, team and employee to control and care about costs, and truly establish the concept of full staff control. It is one-sided to think that cost control is only responsible for budget, settlement and finance.

2) Cost control in the whole process of the project

The occurrence of project cost involves the whole cycle of the project, the whole process of project cost formation, from the beginning of construction preparation, through the construction process to the end of the warranty period after completion and handover. Therefore, cost control should be accompanied by every stage of project construction, such as making the best construction plan in the construction preparation stage, carrying out construction according to the design requirements and construction specifications, making full use of existing resources, reducing construction costs, ensuring project quality, and reducing the cost of project rework and warranty after project handover. In the stage of project acceptance and handover, the contract price should be added in time to handle the project settlement, so that the project cost can be effectively controlled from beginning to end.

3) Target control principle

Management by objectives is the basic technology and method of management activities. It is to implement the planning principles, tasks, objectives and measures one by one. In the process of implementing target management, the target setting should be practical, the more specific the better, and should be implemented in departments, teams and even individuals; The responsibility of the target should be comprehensive, including both work responsibility and cost responsibility; Do the combination of responsibility, right and benefit, evaluate the performance of the responsible department (person), and link it with its salary and bonus, so that rewards and punishments are clear.

4) Dynamic control principle

Cost control is a management activity in a constantly changing environment, so we must adhere to the principle of dynamic control. The so-called dynamic control is to put people, materials and machines into the construction process, collect the actual value of the cost, compare it with the target value, and check whether there is deviation. If there is no deviation, continue, otherwise we must find out the specific reasons and take corresponding measures. The process of implementing cost control should follow the "exception" management method. The so-called "exceptions" refer to those problems that do not often appear in the construction activities of engineering projects, but the key problems have a great influence on the smooth completion of cost objectives and must be highly valued. In the process of project implementation, the cases that are "exceptions" usually have the following aspects:

1) Importance: Generally speaking, it is a significant difference in amount, which is called "exception" and cost difference.

The amount should be determined according to the specific conditions of the project and the percentage of the difference should be determined on the basis of the original standard. Differences are divided into favorable differences and unfavorable differences.

The profit is poor. It is not necessarily a good thing that the actual cost is lower than the standard cost, which may cause two situations:

One is to bring adverse effects on subsequent partial projects or operations; The other is to cause low quality, except for possible belt.

Rework and increased warranty costs, quality cost control also affect corporate reputation.

2) Consistency: Although some cost differences do not exceed the specified percentage or minimum amount, they have been controlled.

Wandering around the upper and lower limits of the line should also be regarded as an exception, which means that the original cost forecast may be inaccurate and necessary.

Adjust according to the actual situation.

3) Control ability: Some cost items are beyond the control of the project manager, even if there are significant differences,

It should also be regarded as "exceptions", such as land acquisition, demolition, and rising temporary rental fees.

4) Particularity: All cost projects that have an impact on the whole process of project construction, even if the differences do not reach an important position, should be highly valued by cost managers. For example, one-sided emphasis on saving mechanical maintenance costs. Although the cost can be reduced in the short term, the lack of maintenance may lead to the shutdown of maintenance in the future, thus affecting the smooth progress of construction production.

3. Find an effective way to achieve the goal of cost control

There are many ways to reduce the project cost, which can be summarized from the aspects of organization, technology, economy and contract management.

3. 1 Take organizational measures to control the project cost.

First of all, it is necessary to clarify the institutional setup and staffing of the project management department, and clarify the division of powers between the project management department, the project management department, the company or the construction team. The project management department is the operation management team, and the enterprise legal person designates the project manager as its representative to manage the project. After the project is completed, it will disintegrate, so it is not an economic entity, and should be responsible for the overall interests of the company, and should coordinate the relationship between companies.

Secondly, it is necessary to define the cost controller and task, so that someone is responsible for cost control and avoid the problems of high project cost, excessive expenses and unclear responsibilities.

3.2 Take technical measures to control the project cost

Take technical measures, give full play to the subjective initiative of technicians in the construction stage, and conduct necessary technical and economic demonstration on the main technical schemes in the tender, so as to seek more economical and reliable schemes, thus reducing the project cost, including adopting new materials, new technologies and new processes, saving energy consumption and improving mechanized operation.

3.3 Take economic measures to control the project cost

Take economic measures to control the project cost, including:

(1) Labor cost control: Labor cost accounts for a large proportion of the total project cost, generally around 10%, so labor cost should be strictly controlled. It is necessary to reduce or shorten the man-day consumption of some processes from the control of labor quantity, so as to reduce the man-day consumption and control the project cost.

(2) Material cost control: General material cost accounts for 65%~75% of the total project cost, which directly affects the project cost and economic benefits. The general practice is to do a good job in two aspects according to the principle of separation of quantity and price.

First, the control of material consumption: First, insist on determining the material consumption according to the quota and implement the quota acquisition system; Secondly, improve construction technology, popularize and use all kinds of new technologies, new processes and new materials, and reduce material consumption. Then analyze the function of the project and the performance of materials, strive to replace high-priced materials with low-priced materials, strengthen the management of turnover materials, and extend the turnover times.

The second is to control the price of materials: it is mainly controlled by the purchasing department in procurement. First, investigate the market situation. On the premise of quality and quantity, we should shop around and choose the best materials. Secondly, organize transportation reasonably, purchase materials nearby, choose the most economical transportation mode, and reduce transportation costs. Thirdly, we should consider the time value of bonus, reduce the capital occupation, reasonably determine the purchase quantity and batch, and reduce the material reserve as much as possible.

(3) Control of mechanical expenses: reduce the number of mechanical shifts consumed in the construction as much as possible, improve the utilization rate and intact rate of mechanical equipment through comprehensive construction organization and mechanical deployment, and at the same time strengthen the repair and maintenance of on-site equipment, reduce the cost of overhaul and regular repair, and avoid the idleness of mechanical equipment caused by improper use; Strengthen the management of leased equipment plan, make full use of social idle mechanical resources, and reduce the price of mechanical fleet from different angles. Controlling project cost from an economic perspective also includes measures to reward departments and individuals involved in cost control.

3.4 Strengthen quality management and control rework rate.

In the process of construction, strictly control the quality of the project and always implement the quality policy of "precision, sincerity, Excellence and innovation" of our bureau. Quality self-inspection personnel at all levels should be fixed-point, fixed-post, and fixed-responsibility, strengthen the quality self-inspection and management in the construction process, truly implement the whole process, nip in the bud, eliminate common quality defects, ensure that the project is formed once and qualified once, prevent rework and avoid unnecessary personnel.

3.5 Strengthen contract management and control project cost.

Contract management is an important content of construction enterprise management, and it is also an effective way to reduce project cost and improve economic benefits. The time range of project construction contract management should be from the beginning of contract negotiation to the end of warranty date. In particular, strengthen the contract management in the construction process, paying special attention to the attack and defense of contract management. Attack refers to paying close attention to the progress and effect of our contract performance in the process of contract execution to prevent the other party from claiming compensation. The task of the contract manager is to read the contract classics every day, the offensive opportunities and defensive measures between the lines. In short, cost forecasting establishes behavioral goals for cost, and cost control is targeted: without cost control, cost forecasting loses its meaning of existence, and cost management is out of the question. The two complement each other. Therefore, it is necessary to carry out in-depth research in theory, comprehensively carry out in practice, and effectively and solidly carry out these tasks.