A, the so-called reasonable determination of project cost, is to determine the investment estimate, estimated cost, estimated cost, contract price, settlement price and final settlement price at all stages of the construction procedure.

1. In the project proposal stage, according to relevant regulations, a preliminary investment estimate should be prepared. Approved by the competent department, it is included in the national medium-and long-term plan as a proposed project and the preliminary work is carried out to control the cost.

2. In the feasibility study stage, the investment estimate prepared in accordance with the relevant regulations will control the project cost with the approval of the competent department.

3. In the preliminary design stage, the total preliminary design budget prepared in accordance with relevant regulations, with the approval of the competent department, is regarded as the highest project cost of the proposed project. In the preliminary design stage, if the contract agreement is signed under the bidding and contracting system for construction projects, the contract price should also be within the corresponding maximum price limit (total budget estimate).

4, in the construction drawing design stage, according to the provisions of the preparation of construction drawing budget, verify whether the construction drawing stage budget cost exceeds the approved preliminary design estimate.

5. For the bidding project based on the construction drawing budget, the contract price is also the construction and installation project cost determined in the form of economic contract.

6. In the project implementation stage, the settlement price shall be reasonably determined according to the actual quantities completed by the contractor, based on the contract price, and taking into account the cost increase caused by rising prices, as well as unforeseen projects and expenses that actually occurred in the design and implementation stage.

7. In the final acceptance stage, summarize the actual expenses incurred in the project construction process, and prepare the final accounts for completion, which truly reflects the actual cost of the construction project.

Second, the effective control of the project cost is to take certain methods and measures on the basis of optimizing the construction scheme and design scheme, so as to control the occurrence of the project cost within a reasonable range and the cost limit approved by each stage of the construction procedure.

Specifically, we should use the estimated investment price to control the selection of design scheme and the estimated cost of preliminary design; Design and revise budget cost with budget cost control technology; Control construction drawing design with estimated cost or revised estimated cost, and control cost with estimated cost. The key point here is to control engineering investment. The effective control of project cost should embody the following three principles:

1, focusing on the whole construction process cost control in the design stage. The key of project cost control lies in the investment decision-making and design stage before construction, and after investment decision-making, the key of project cost control lies in design. Design quality is very important to the benefit of the whole project construction.

2. Active control can achieve satisfactory results. After applying the research results of system theory and cybernetics to project management, it is a proactive control method to take decision-making measures in advance to reduce or even avoid the deviation between the target value and the actual value as much as possible, so it is called active control. Our project cost control should actively influence investment decision-making, design, contracting and construction, and actively control the project cost.

3. The combination of technology and economy is the most effective means to control the project cost. In order to effectively control the project cost, measures should be taken from the aspects of organization, technology and economy. Organizational measures include defining the organizational structure of the project, defining cost control personnel and their tasks, and defining the division of management functions; Take technical measures, including paying attention to selecting various design schemes, strictly examining and supervising preliminary design, technical design, construction drawing design and construction organization design, and going deep into the technical field to study the possibility of saving investment; Take economic measures, including dynamically comparing the planned value with the actual value of the cost, strictly auditing various expenses, and taking effective incentive measures to save investment.