On the construction phase of the project investment decision-making and control _ paper to write network

Papers to write net: Abstract: The use of limited capital Investment to achieve the best social and economic effects, government, business or co-owners of the construction project expectations this project from the construction phase of the Investment decision making concept of estimation, the preparation of the introduction of the principles and methods to start, Investment control of construction projects for the system introduced and emphasized the value of analysis is effective in improving the competitiveness of construction projects, an important means of preferred projects and programs.

Keywords:: Investment analysis to estimate the value of project decision-making

1 project in the Investment decision-making phase of a construction project from beginning to invest in Investment intentions end the whole process can be divided into four phases: project decision-making stage; preparation stage; the implementation phase; project summary stage project planning and decision-making stage is the most important part of Investment projects and important aspects of the Investment project can achieve the desired economic and social benefits play a key role.

Investment decision-making stage in the project estimate is for construction of the project scale, technology and Engineering solutions, project schedule and other research and preliminarily determined, based on the estimated total capital Investment in the project process.

By <<investment project feasibility study guides>> division, the total investment project financed by the capital investment (including construction period interest) and two liquidity constitute Investment estimates, the effect of excluding the construction period interest on construction investment, construction period of interest and liquidity to estimate separately the various elements Investment estimate the specific content including: construction costs, equipment and industrial equipment purchase costs, installation costs, construction of other fee, the basic reserve fund, construction period interest and liquidity, etc. .


2 project investment estimates prepared by the basic principles of the specific content of 2.1 Investment Estimation of a construction project costs; b Purchase of equipment and tools and instruments;
c installation costs; d construction of other costs; e basic reserve fund; f interest of construction period; g liquidity.

Formula that can be used as follows:
Construction period interest-free capital investment = a + b + ... + e
Construction investment = construction period interest-free capital investment + f
Investment in construction investment = static + dynamic investment static investment = a + b + ... + e
Dynamic Investment = f
The total project investment capital construction funds + g =
2.2 Investment Estimation of the depth of work required due to the different stages of different depth and available Information, the accuracy of estimates of investment is different. As work progressed, the project cost will continue to in-depth, accuracy will gradually increase, and thus investment play effective control action the project at different stages of pre-investment estimate of the allowable error rate is as follows (Table 1:
2.3 Investment Estimation and importance of the basis for the preparation of
Construction investment is estimated based on the basis of data and include the following aspects: (1) The proposed project Engineering solutions and quantities; (2) specialized agencies of the release of the construction project cost estimating methods and standards, and government departments issued price index; (3) professional organizations released construction cost fee structure, calculation methods, namely by the indicators.

Investment estimation may be summarized as follows: (1) Investment estimates are pre-investment projects an important part of (2) is to meet the Engineering design and bidding cities in the Design of campaign need.


3 basic methods of preparation of investment estimated capital investment simple estimation method 3.1 (a ratio estimation method; (2 productivity index method; (3 Lange coefficient estimation method; (4 indicators of investment estimation method.

Estimated investment indicators are divided into units of work indicators, indicators of individual projects, project comprehensive index of three. Composite indicator construction projects, generally projects that investment in production capacity units. Single project indicators are generally single project investment in production capacity unit, said. Unit Engineering Indicators required to be included in the independent design and construction of the project costs, that construction and installation costs.

3.2 Construction investment category estimation method to estimate the individual projects are the construction costs, equipment and acquisition costs and installation costs; in putting together the individual cost of the project, based on the estimated construction of other charges; estimate the prices of basic reserve fund and reserve fund ; Canada and obtain construction investment (including construction period interest) amount; Finally, the financing of the project construction period interest calculation scheme above plus the total sum to derive estimates of total investment.

The construction project cost estimation methods have a unit construction investment estimation method (in building construction project the total amount of investment *), units of physical quantities estimated investment method (in-kind Engineering projects of the total amount of investment * in-kind), and budget targets Investment estimation method. The first two methods is relatively simple, the latter method to a more detailed engineering data, based on a larger workload, can be selected according to specific conditions and requirements.


4 Control theory of investment decision-making phase of value engineering (Value Engineering, abbreviated as VE) also known as value analysis, which requires the lowest life cycle cost to reliably achieve the necessary engineering functions of its expression: value = function (effect) / costs (expenses), or V = F / C This definition includes three aspects: Links to free download http://www.hi138.com
(1) VE research projects from the lower life-cycle cost (Life-Cycle Cost, referred to as LCC) perspective to improve the research value of the object. VE research should focus on reducing life cycle costs, not only consider the construction costs. Value Engineering The purpose of the study is based on the lowest life cycle cost, to achieve the desired functionality the user. implementation of value engineering to avoid blindly reduce the project cost and the object of study leading to the phenomenon of the low level of functionality, but also avoid blindly increase the use of cost which led to the phenomenon of the high level of functionality, the project cost and construction cost of product features with a reasonable match, saving social resources.

(2) Value Engineering is the core of the project functional analysis by functional analysis, features and remove the excess of functional requirements unreasonable, insufficient to enhance function, to ensure cost-effective projects on the basis of quality. Functional analysis of a important element is the number of functions, the qualitative indicators into quantitative indicators.

(3) Value engineering is a kind of collective wisdom to rely on an organized system for work of value engineering studies, staff attend to all aspects of the organization, and proposed technical solutions, to learn all aspects of the experience, the combination of program optimization and program improvement together to improve the value of purpose.

Value engineering which is essentially a function of the center to plan a job, the purpose of the following aspects:
① achieve the necessary functions, remove unnecessary functions.

② obtain the necessary functionality and cost the best match.

③ the functions of each part roughly the same life, in order to obtain the best value for money.

In general, increase the value of products, the following five ways: to improve function, reduce the cost of which is the best way; remain the same functionality, lower costs; to keep costs the same, to improve level of functioning; costs increased slightly, However, significantly higher levels of functionality; level of functioning decreased slightly, but the cost dropped significantly.


5 Conclusion
Construction projects are usually a long cycle, high investment, high risk, and irreversibility of the construction project, once invested, to build up engineering, equipment installation up, even if found wrong, it is difficult to change, this is bound to cause great losses and waste. Therefore, the investment estimate is pre-investment projects an important part of scientific and reasonable estimate of the preparation of investment, value analysis is effective in improving the competitiveness of the construction project, an important means of preferred projects and programs.


References
[1] Ma Hui, Wang Xueqing based on multivariate statistical analysis of the construction project investment is estimated method [J]. Statistics and Information Forum, 2010,25 (4): 25 - 29.

[2] Cao A, Ge Hongxiang, Rui Wang. Estimation of construction investment projects [J]. Construction management modernization, 2009,23 (4): 343 - 346.

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