Management Contracting and management of the commission contract should be noted that in practical application problems

Abstract: The MC models that draw on the successful experience of foreign countries, development suited to China's construction market, construction Project Management contract model is a complicated systematic project, the construction Project Management contract model in practical applications should pay attention to the problems analyzed in advance, so that The process of the application and promotion of the development can move more rapidly.

Keywords:: Management Contracting; people monthly fee; cost plus fixed fee

MC model is 60, began in the 20th century, the Commonwealth and other countries gradually formed and developed, inevitably there are features of Western construction. In our promotion of management contract model and the corresponding management agency agreement, to reflect the following three principles : MC practice of foreign long-term accumulation of experience in the advanced and reasonable; strive to meet the actual situation of the domestic construction market; try not to yield to the formation of the domestic economy's long-term plan unreasonable practice, and promote China's construction industry pace with the international practice. In this paper, Management Contracting should be noted that in practical applications to analyze the problems in advance, and put forward countermeasures for the management contract model can be faster and better application of large-scale projects in the country and promotion.

First, the scope of management contract model
Management Contracting with the characteristics of the decision it particularly suitable for projects in the following types of application. Large, complex projects, such investment is huge, innovative design and construction of high difficulty involved in the project design, construction and procurement of many units . such as the modern high-rise buildings and intelligent buildings. construction period is very long, and particularly stringent requirements on the duration of the project. such as real estate development project or a specific time requirements to use the monumental architecture. is not suitable to engage a contractor, or difficult to contract by a contractor to the project total package of death. Such project design novel and unique in design, construction process will face many problems to be resolved between the large number of materials, systems, equipment, prices and construction and installation costs can not be predetermined, if the traditional construction contract, the price will inevitably cause a "bottomless pit" and a fact, "there is no lump sum turnkey contract."
Second, analysis of Engineering consulting
By management contract model, the knowledge structure of consulting firms and a higher capacity requirements, main features: design process, consulting firms have a considerable depth of understanding, and have a rich experience in construction. Only if it has these two aspects knowledge, consulting firms in the design process can be technical and economic comparison, the design unit to make reasonable suggestions; be in the bidding phase will benefit the whole project is divided into "fast path method" construction contract system; be good in the construction phase contract to carry out the management contract. consulting firm should have a strong management capacity, particularly in investment management capabilities. the traditional contract model, the owners often take the general contractor and construction contract lump sum turnkey contract by the construction contractor bear most of the cost of risk. by management contract model, the total investment gradually identified with the contract works, consulting company does not assume responsibility for cost of not more than GMP, the owners bear the investment risk. Therefore, the consulting firm in order to obtain substantial development, must be involved from the beginning of the project design stage to the dynamic control of investment, to avoid exceeding the expected number. consultancy, project contracts have a wealth of experience. by management contract model, though called by the owner and construction contractors were directly entered into cargo business contracts and supply contracts, but the consulting firm responsible for part of the subcontracting work is very clear contract. consultancy early in the design division of the initial planning of the project, reported to the owners for approval. pending completion of the tender drawing design design unit, the Advisory presided over the company on behalf of the owners of the contracting part of the project. In order to complete the project contracting tasks very well, asked consulting firm with the terms of a wealth of knowledge and experience. consulting company should have strong information management capability. consultancy, should be responsible for the preparation of various types of submitted information. construction contractor payment approval procedures; the preparation of management processes and information flow; to determine the division of responsibilities of various departments table meeting system developed; responsible for documentation and other files. consultancy should also be familiar with the location of the project's construction market, informed of the location of the law, while there should be accounting, insurance, etc. professionals. reposted elsewhere in the Research Papers Download http://www.hi138.com Third, management service fees
Commissioned in the management of the contract, the consulting firm billing management costs and how much is the focus of the negotiations. Project Management fees calculated more exactly which one to use or which of several ways to use both, depends on the owners nature of the services required, scope, complexity and consulting firm the outcome of negotiations with the owners and, ultimately, be clear in the contract.

(1) people monthly price method. People monthly fee Engineering consulting unit price method is the most common, basic time-based billing method, which is usually a monthly cost per individual (ie person-months rates ) multiplied by the corresponding number of person-months, plus other reimbursable expenses (non-wage expenditure) to be calculated. such billing method is widely used for general project planning and feasibility studies, Engineering design and construction supervision, and technical assistance missions.

(2) cost plus fixed fee. Cost plus fixed fee consulting company in the completion of project tasks and inputs of all services provided by the cost of supplies on the basis of compensation, plus a fixed fee approach to the calculation. Fixed remuneration is a compensation consulting firm for unforeseen expenses, interest on invested capital, the attitude of the cost of incentives and profit. use of cost plus fixed fee billing method on the premise that the owners and management services consulting firm, the scope for agreement. scope of work, cost estimates, and in the management of fixed remuneration should be clearly entrusted to the contract. If the consulting firm's services than originally estimated workload has undergone major changes, the contract will have to supplement prepared to renegotiate the terms of the fixed remuneration. The monthly fee billing method and price method were similar, the point is that the remuneration of different factors listed separately and in accordance with the schedule or paid under the process of goal. However, if the consultants need to increase staff in consultation with the owners to the scheduled time complete the task, are usually paid only to the consulting firm by the increased costs, and not increase the remuneration or profit. When the consulting firm needs to determine the detailed scope of work necessary to start work before the case can also use the cost plus fixed payment method. fixed amount of remuneration based on the size and complexity of the scope of services differs. general wage expenses, management fees may be reimbursed for costs plus the sum of the percentage of cost calculations, it was at least 15% of total costs -20%, the only way to get a reasonable consulting firm profits. fixed remuneration and projects not directly related to the construction cost. with management commitment fee for using the cost plus fee contract law, all compensation should be required to occur directly or indirectly with the project related costs, including but not limited to the time foreseen in the contract negotiations of all costs. project costs to compensate for part of the list should be as complete and detailed. cost plus fee's advantage is that it eliminates the need for consulting firms to increase their deliberately increase the construction cost of the charges the suspects.

(3) total price method. Lump sum method is for project owners and consulting firm negotiated a package of paid services approach, commonly used in the project scope of work and services, such as detailed Engineering design task. This charge includes wages, management fees, non-wage costs, unforeseen expenses, interest on invested capital compensation, reward and attitude of a certain amount of profit.

(4) the percentage of project cost method. Project cost method is based on the percentage of the total cost of construction consulting firm to calculate the percentage of management fees, rates can be charges with reference to the standard of supervision, generally higher than the 2% -3%. Relevant institutions such as the World Bank , which do not advocate the use of the actual construction costs as a percentage calculated on the basis of the construction management contract, because it has actually become a bottomless contract, is not conducive to innovative design and reduce design costs, to overcome this shortcoming, a more feasible approach is to the contract amount (or the main part) rather than the actual cost as the basis of estimated costs.

(5) the use of a variety of billing methods. Four methods described above, the human unit is the monthly fee to provide services under the consulting costs incurred to determine the charges, the provisions do not need precise scope of the project, so when the project scope not clear when these methods can be used. total project cost method or the percentage method, entirely based on the purpose of calculating the size of the project, regardless of costs incurred in the work of consultants, more suitable for a clear job content, and consulting firms to facilitate control the cost of the project. cost plus fixed fee approach also requires the project content clearly, but lower than the percentage of project cost or lump sum method is more flexible to adapt to change. If the construction period, site project on behalf of the management fees, because of their work is To a large extent the impact of the work by the construction contractor, which should adopt the cost plus fixed fee method. visible only in the scope of the project was relatively clear case of using the cost plus fixed fee, a percentage method and the total project cost of three methods payment methods.

Conclusion
In this paper, Management Contracting and contract management commission should pay attention to practical applications are analyzed, including the management contract model of the application of analysis, intelligence analysis and consulting firm, accounting methods, management fees. Intended for the management contract model in the country the application and create more favorable conditions for the promotion

References:
[1] Le cloud; a new contract model (CM) of the theory and practice of (D) Project Management Institute of Shanghai Tongji University, 1994.

[2] Li Chaoyang; China CM / Non-gency model CM manager, owners and general contract conditions of (D). Tongji University, Shanghai Institute of Engineering Management, 1995. Reposted elsewhere in the Research Papers Download http://www.hi138 . com