On the hydropower project cost management and cost control

Keywords:: cost management, cost control, and hydropower projects

Abstract: With the continuous development of market economy, construction of hydropower industry, the competitiveness of enterprises is also growing along with the construction business philosophy has been from the "planned economy, a project of dry" to "market economy operating a project . "This requires the construction enterprises to continuously strengthen its Project Management, cost management as the center to form the operating mechanism, do a good job cost management and cost control, optimal allocation of resources to maximize the potential of mining enterprises, enterprises in the hydropower industry is low cost competitiveness key to winning.

0 Introduction.

Better cost management and Project Management, cost control is an important way to improve profitability, but also one of the eternal theme of Project Management. This paper tries to Construction Project Management from the perspective of cost control Points.

An income and reduce expenditure.

As the Ministry of Construction Enterprise Project Management project cost control, it is necessary to conscientiously fulfill the signed construction contract, completion of the work content, on this basis to maximize revenue, the second is to strengthen the management of materials and equipment and services sub- management, improve construction quality, reduce material consumption, save money, is to cut expenditure.

1.1 open source income.

Revenue, income measures, the business object is the owner, to focus on three areas: contracts, price advantages, technical and cost effective combination.

(A reasonable beneficial use of the terms in the contract. Contract is the most important basis for project implementation, is to regulate property owners and construction guidelines for corporate behavior, but usually reflects the interests of property owners more. Does not mean that cost control effective use of staff in terms of the contract terms of inaction, the basic principles of contract, equality and justice, Chinese semantic have multiple and complex features also caused some of the terms of the contract or statements can be imprecise understanding of multiple, individual articles and even conducive to the construction business. This cost-control personnel for the effective use of contractual terms to create the conditions. In terms of the contract change on the basis of the claim, based on the full, claims the likelihood of success is relatively large.

The implementation of construction bidding system, the profits of construction companies have been very successful project, individual cases, even no profit. The project implementation process can be effective based on contract changes and claims, a project can be the key to profitability.

(2 rational use of price advantages. Advantage of price is the winning project in the larger profit margins contract price. We all know, we in the bidding process, to reap greater profits after winning, the tender offer will take unbalanced approach, as far as possible changes likely to improve (mainly refers to the amount of additional works projects of the profits. These profits are larger contract unit price to our advantage.

Reasonable use of the advantages the unit price, to require the construction enterprises in the actual construction process, the best use of design changes and other conditions, increase the number of dominant unit of the project to reap greater profits.

We know that construction to achieve the design intent can be a variety of ways, they each have advantages and disadvantages, and often is one of many problems. Such as infrastructure projects, we can use stone mortar, mortar rubble, dry stone masonry , pouring of concrete rubble and other construction methods, can meet the design requirements. Of course, some high cost of the scheme, some low cost, and some construction speed, construction and some slow. the construction business from the perspective of cost management should try to choose a large profit margins for construction programs, take advantage of price advantage and increase economic efficiency of enterprises.

(3 technology, management closely. The close integration of technology and economy has been the emphasis on cost control problem areas, but in practice, often did not reach the degree of institutionalization, and even there is a serious disconnect.

Closely with the technical and economic implementation of the project should be reflected in all stages, in particular, how to determine the project construction program is very important.

Experience in the construction design unit and construction unit is often a gap exists in determining a reasonable plan design changes, they often seek to give full views of the construction unit and technical personnel, and even technical staff will require the construction unit design ideas first put forward, which is the legitimate interests of construction companies seek to create the conditions. The technical characteristics of their work because of the restrictions, the construction plan prepared by the program's emphasis on safety considerations and operational, although able to complete the design requirements, but from a cost perspective, is not optimization, even in the absence of the necessary cases, greatly reduced the profits of construction enterprises, whether the program can ignore the interests and demands of the enterprise. In this case, cost control, program development personnel in construction is particularly important.

Specifically, the technical staff should be first put forward to achieve the design intent of the sets of programs, on this basis, economic comparisons, and the results demonstrated a quantitative basis to determine the construction program. Construction unit's construction program should be easy the case of construction to achieve maximum benefits and avoid shooting itself in the foot their own situation. the effective integration of technical and economic benefits for improving the enterprise is the most significant. above (2, suggest that the owners used the basis of concrete pouring Rubble example is a successful example. [Research Papers Download hi138.com]

1.2 throttle, savings.

For construction enterprises, in order to reduce expenditure, savings, we must first promote the project cost accounting system, which will help reduce consumption, efficiency savings, mainly in the following points: �� from the human, financial, and material configuration to start, according to the actual inspection results back construction, combined with the industry a unified scale, develop a reasonable, workable internal cost accounting fixed, sequential partial and full cost accounting cost accounting. �� a variety of distribution methods, materials, major projects costs, labor costs, machinery costs and management fees for accounting and analysis, management of the implementation of the basic wage labor costs, value of wages and benefits of the combination of wages, materials management to implement a fixed consumption of internal accounting basis, strict control of inventory purchases. �� Mechanical implementation of cost management as the base operating costs of equipment, give full play to the efficiency of the device. �� the level of the main and auxiliary material consumption and costs linked to expenditure and the amount of construction work, strict examination reward and punishment, thus enhancing the sense of job cost accounting team, so reduce the over-excavation, material savings, improve efficiency, while the interests of the various operations teams to establish incentive mechanisms, the establishment of safety and quality objectives of incentive awards and special awards. �� accounting system in the implementation process, the gradual establishment of accounting feedback system cost analysis. by the Finance the sub-sector projects costing some projects, some of the sub-project of economic and profit situation of feedback to guide the construction, production, and improve cost accounting procedures. Meanwhile, the construction should be based on the actual situation (such as construction period, scheduling, etc., appropriate adjustments to quotas, the implementation of cost accounting, fixed distribution.

The benefits of this operation has three aspects: First, significantly reduce material consumption, direct cost reduction, process control, rigorous, and second, the implementation of resistance, can be step by step, side to side to seek Experience for full-cost accounting and cost control by means other basis the third is to make human, machinery with the potential to be the largest such play, while increasing the transparency of distribution, which greatly increased the enthusiasm of employees, self-awareness and initiative, is conducive to the cultivation of corporate philosophy.

The focus is on cutting savings to enhance sub-project cost of materials and labor cost control:

(1 material cost control. Material costs in the project cost is often a high percentage, usually no less than 50%. Material cost control refers to the consumption of the materials for the construction project for the quantity and price controls, the material cost of materials within reasonable range. material consumption cost control volume control is one of staff, the paper focuses on the conduct.

In general, the construction companies now control the amount of material consumption, the main measure is the "limit of picking." Phases, according to this line control the amount of material consumption, to determine the amount of material consumption. Limit lead compound of the "value" is usually understood is fixed, that is, the number determined under the fixed amount of consumption. I believe that this relatively one-sided understanding. material consumption to refer to a fixed amount of consumption, of course, but it can not apply the machinery. First, the construction of the project determines the differences can not fully reflect the different scale engineering characteristics, and secondly, a fixed level of the social labor force an average of the performance of integrated management of construction enterprises at different levels, corresponding to the level of material consumption is also different. fixed amount of materials consumed or material not applicable to all types of construction enterprises and construction of specific project, different companies, different projects may vary widely. So, as a cost control personnel, the management should be based on their own level and the actual situation of the construction site, the number of reference fixed reasonably determine the amount of material consumption.

Amount of material consumption calculation workload, personnel requirements of the high cost control, cost control and on-site staff in addition to familiar with the situation fixed, but also need to understand the construction process, there are often business people manpower shortage. Now commonly used to solve There are two steps: First, the material consumption for the work transferred to the foreman, so to solve the problem of shortage of business people, and secondly, also contributed to the foreman of some attention to construction costs, increased material conservation. but there are also the foreman for the construction material to avoid stress, affect the construction schedule, put the material consumption of relatively large amount of material consumption is not conducive to control problems, second, the main parts of sub-material consumption quantity control. divided the main part of the material consumption in volume terms is divided into several main parts of the works to limit picking this way to simplify and reduce the workload of cost control, but control not detailed enough, could easily lead to over consumption of material consumption, it must be matched on-site inspection measures and eliminate waste.

Recommended amount of material consumption control: According to the characteristics of the project block to block consumption control, the scope of the block can not be too large, asked the foreman, when the proposed plan for material quantity calculation program materials, along with calculations for technical review. Cost control personnel review the main contents of quantities are correct, and the reasonableness of the amount of material loss. Among them, the loss amount of the audit is relatively simple, the actual situation and according to the site foreman to strengthen consultation on it. But whether the number of audit work is more tedious work correctly. I propose the project cost control personnel ahead of time to focus on all parts of the project surprise the number of calculated and compiled in tabular form in accordance with the site. In this way, audit materials, plan the work to determine the amount of material consumption can In the short period of time is complete.

Of course, the material consumption amount of control must complete certain incentives, saving the need to reward, not to cause over consumption of waste should bear the responsibility to enhance the conservation awareness and enthusiasm. The proposed project the Ministry of the actual situation may be to develop specific incentives, and strict control of purchasing inventory, and improve fund use efficiency, repair old waste, reduce inventory.

(2 control the cost of labor subcontracting. Pure sub-cost labor ratio in the project cost is relatively low, usually no more than 15%. But the actual operation, labor costs typically include subcontractors as part of the construction business is not easy to control The cost of small equipment and ease of consumption of materials, increasing the cost of some difficult to control. construction when labor subcontracting companies, in addition to negotiated labor sub-teams, the regular use of tender to determine the labor force, so that the project department at a reasonable low select the best price of the labor force is favorable.

Would like to stress reasonable low price, labor markets are extremely competitive, even some aspects of competition is more intense than the construction market, and immature labor market, labor force varying ability levels, and many simply do not have the commitment to the labor force loss of ability. To survive, many less than competitive low-cost labor force was forced to tender and the tender price is lower than the cost to maintain the operation. labor subcontractor itself to smaller profit margins, labor force, in which room for maneuver small, low bid, in order to complete the contract, or try to suppress the wages of laborers, resulting in lower labor enthusiasm of laborers, or try to struggle with the construction unit, the use of every opportunity to improve the asking price. in these measures can not be effective, there can not afford to lose circumstances, the labor force can only be slack, delay progress or even halt construction and force construction enterprises to meet their own requirements.

This happens, the construction enterprises and labor force will suffer. The construction project schedule delay, can not guarantee the progress of works on the adverse impact of their own image. Meanwhile, labor force losses, living space is further reduced, could lead to social unrest .

To avoid this situation, it is recommended: First, the construction enterprises to adopt more competitive as possible, with the credibility of the construction labor force participation, second, do not suppress the Lao Wu Wu Yuanze sub-unit, to the cost of labor subcontracting Zuodao heart There are several, to avoid below cost to attract entering the construction labor force, three, if possible, come up with some funds for the reward collaborative team, to provide construction quality, progress, safety requirements of the case to a higher, collaborative team availability of incentives to improve the construction of active labor force, so that enterprises, collaborative teams to achieve win-win situation.

2 strict process control, better cost management.

"Process is the input into output of a group related to each other's resources (personnel, funds, facilities, equipment, techniques and methods and activities. Process management, primarily focused on the activities of the dynamic situation awareness, control and optimization." Adequate use of resources, most effectively play in all aspects of the initiative, timely and accurate manner to overcome the negative factors, obtained the management of the relative effect of high-quality process management goal.

Strict process control, can effectively avoid or overcome the traditional management of "repeated effort" management shortcomings, and the overall management and continuously improve. When the construction unit of a successful construction project to be from the human, financial, and material combinations and effective devote great efforts during use. such as the establishment of the construction organization and personnel, equipped with machinery and equipment, meet the construction needs in the context, institutions should be streamlined to be lean and efficient staff, equipment should be full and effective use. on material consumption, accessories replacement and construction of process control, must by standardized and institutionalized, scientific conduct, so that only unforeseen factors can prevent or reduce the interference of the construction, but also to influence their own production and operation cost of the project components in the proportion of lower or control within reasonable limits, so as to effectively control costs and improve efficiency. process control to full participation, process control, which is the quality of construction personnel, construction has a lot to the level of organization.

Of course, the construction project cost control, involve all aspects of construction. Such as: �� a complete project cost control program should also include the owners of units, design units, and supervision units coordinating business relations, project management, cost control, mechanical use of cost control, and even the relationship with local treatment, �� the construction companies, safety is a top priority should be the top priority, a large construction project in the win loss compensation would be the impact of security incidents, �� the actual construction process, the promotion of new products, new processes, new technology, can reduce the investment cost.

Strengthen project management, in particular do a good job in project cost management, project management has been improving and increasing the key to enterprise efficiency. [Free Paper Download Center hi138 \ Com]