Investment decision-making phase of the project cost control

Abstract: decision-making phase of the project Investment estimate is preliminary project proposal and feasibility study report of an important component of the Investment program is one important basis for selection is the basis of Economic impact evaluation.'s Accurate or not direct Investment is estimated affect the quality of the feasibility study and Economic evaluation results, and thus the success of construction project decision-making and play an important role in order to make reasonable and effective decision-making phase of the project Investment cost control, Investment decisions should pay attention to depth and breadth of application of effective control measures.

Keywords: cost control, decision-making stage, control measures Introduction As China's rapid Economic growth, we are getting closer to the developed countries, developed countries in the construction project taking detours should be avoided, especially for us a population many, shortage of resources a country as vast, energy-saving design is particularly urgent. Construction projects at all stages of decision-making and design small amount of money spent, but the impact of the project cost is very large, is the critical stage of project cost control, however, the construction project cost control is a complex systematic project, involving not only a wide range of professional and construction projects related to the parties involved, including owners, supervision, design units, construction units, relevant government departments. the parties in the design management process, what role, if there could be a common management model, how to improve decision-making phase of the project cost control methods, to make it more practical, which are worthy of further reflection and exploration.

1 Investment decision-making phase of project cost control
(1) in the Investment decision-making stage to do basic data collection. The cost of the project site need to collect the water circuit conditions, geological conditions, the prices of major materials and equipment information, procurement of bulk materials and has been built to similar engineering data and information the accuracy, reliability careful analysis to ensure that Investment forecasts, Economic analysis and accurate.

(2) must do the feasibility study phase of the technical and Economic feasibility studies. Feasibility study to directly affect the success of the project, the feasibility study stage and the formation of the project Investment is estimated to determine the limit value of an important basis for the design and impact The total budget for the design and construction drawing budget to enhance its accuracy needs to be adequate market research, market research refers to the proposed project is to provide products or services, the possibility of market share analysis, including domestic and foreign markets in the period of the project demand for the product within the proposed conditions, the construction of similar projects, the state policy in the industry and future development trends.

(3) make optimization is the key to controlling project cost, according to foreign statistics show that the optimization in project decision-making process of the possibility to save and invest 80 percent in after the completion of market research, in conjunction with the actual situation of the project, production to meet the premise, follow the "first effective" principle, multi-program comparison. technical and economic staff and designers should be close coordination with the dynamic analysis method for multi-program technical and economic comparison, through optimization, the process as much as possible simple, more rational selection of equipment, thus saving a lot of money.

2 construction project cost control decision-making stage a long time, China's construction there is a serious Investment in expansion of the phenomenon, resulting in more delay the longer the duration, increasing construction costs, one important reason is that the pre-construction decision is unreasonable.

2.1 pairs of project cost with investment decisions is not enough emphasis on the specific situation in China, investment decision-making is to produce the source of project cost, this phase the total investment cost of 0.5% to 3%, but can effectively improve the project's investment returns. On a construction project reasonable choice is to optimize the allocation of economic resources, the most direct and most important means of project investment returns affect the entire national economy, efficiency and effectiveness of the developed world for investment decision-making phase project cost is indeed very great importance to have spent much money, making great efforts to invest in research phase of the project cost, issued by the relatively more accurate project cost control, however, has long been China's construction of a lack of pre-construction to determine the project cost effective basis, can only be based on experts, policy makers learn from The completed project cost estimate, but often because many other factors, the "three excesses" are quite common.

2.2 to carry out basic work cost control based on our current lack of capital construction program, construction preparation work includes: submit project proposals, preparation of feasibility studies, preliminary design and preparation of project budget, and draw the relevant units in accordance with administrative privileges approval, etc. However, in practice, many government-funded projects due to time constraints, in the absence of intensive preparatory work for the case, for example, investment in the project do not fully predict the location of the project do not understand the hydrological and geological conditions The main materials and equipment to find out the price is not the case, blindly entrust the design units, preparation of a feasibility survey and design units of study and preparation of investment estimates due to their lack of relevant data, or an insufficient number of technical and economic staff, the quality is not high , ill-informed, can not be a reliable market forecast analysis, making the lack of sufficient production scale to determine the basis, combined with basic data is not eager to work on the implementation, financing and coordination of various external conditions are often assumed rule of thumb, all of which result in Investment estimates lack credibility. Another part of the project construction units can be reported to the department the successful project approval, to design units in the investment estimation intentionally undervalued, engage in "phishing works", does not increase the accuracy of estimates. turn affixed to the free download http://www.hi138.com
3 Investment decision-making stage in the project cost control measures in construction projects the technical and economic decision-making, the project's construction costs have a significant impact, especially in determining the level of construction standards, building site selection, process selection, equipment and materials selection, etc., are directly related to the level of project cost, so the project investment decision-making phase of the project cost control is to determine the cost basis, which directly affects the various construction phases of project cost control is scientific and reasonable construction unit as an investment should be the main actively carry out the project cost control and management, give full play to their main role.

3.1 preparation of a feasibility study to collect data must first make investment decisions based data collection phase of the work, good investment projects forecast, need a lot of information, such as the location of the project water conditions, geological conditions, the prices of major materials and equipment information, procurement of bulk materials has been built to similar projects and existing data for economic evaluation of projects to do but also to gather more information on the cost of personnel information to the accuracy, reliability, a careful analysis to ensure that investment forecasts, economic analysis and accurate. Second, we must prepare the feasibility study report. the project feasibility study stage, the project's technical and economic decision-making, the project cost and the project's economic benefits, have a decisive impact, project cost control is an important stage feasibility study to quality control as the core, the size of the project construction standards, process layout, industrial planning, technical progress in the scientific analysis should be realistic.

3.2 The importance of project cost investment decisions and select the best program right decisions, it is reasonable to determine and control of construction investment premise is to ensure the correctness of the basis of investment direction the project investment decision is to choose and decided to invest in programs of action, the need for the proposed project technical and economic feasibility and feasibility studies, building programs for different technical and economic comparison to make judgments and choices and decision-making process. the right investment operations from the right investment decisions. making the right projects, meant to make a scientific project decisions, and in the construction of the premise, select the best investment program of action to achieve the rational allocation of resources, so that can be reasonably estimated and calculated construction investment, effective control of investment and therefore should pay attention to the project investment decisions in the full study investment decision-making stage affect investment control and other factors based on the multi-program comparison and selection, selection can achieve owner's investment intent of the most economic solution. investment decision-making stage affect investment control elements generally include: ① The first is the construction of location choice (including the built-up areas and construction of the choice of location). built-up areas a reasonable choice or not, to a large extent determine the fate of the proposed project, the impact of project investment, quality objectives, impact on the operating conditions of the project is completed. ② determining the level of construction standards . construction standards of the main contents are: process equipment, building standards, supporting the project, and other aspects of employment of the standards or indicators of the preparation of construction standards, assessment, approval is an important basis for the project feasibility study, is a measure of capital investment is reasonable and project supervision and inspection of the objective scale. ③ the assessment process and equipment selection. ④ financing options. ⑤ construction timing.

3.3 Investment Estimation and carefully prepared for rigorous review to ensure the accuracy of estimates of investment.

Estimates of the proposed investment project pre-feasibility study is an important element, is the basis for economic evaluation is an important basis for project decisions, because stages are further divided into investment decision-making phase of the project proposal, a preliminary feasibility study stage, a detailed feasibility research stage, the investment estimate work accordingly divided into three stages as decisions from shallow to deep, deepening, investment estimation accuracy gradually increased. investment should be based on estimates prepared to make detailed, and seeks as comprehensive as possible, from reality, taking fully into account the construction process may occur in various situations and unfavorable factors of the project cost, construction period taking into account market conditions and price fluctuations factor aside, the investment is largely realistic and leave room. to make the investment estimates The total investment really played the role of control, so only enhance decision-making depth, using scientific methods and practical to estimate data, to calculate a reasonable estimate of investment to ensure sufficient investment is estimated to fight in order to ensure that other phases of construction investment at a reasonable range, make the investment to achieve control objectives, avoid the "three excesses" phenomenon. In addition, to ensure the accuracy of estimates of investment, must ensure that estimates of indicators of science and rationality.

At present, China should be used to estimate indicators of a larger reform, the implementation of price-volume separation of indicators will be the "quantity" column are all, bar fine, easy to use indicators, according to the specific circumstances of the proposed project on the "quantity" to make the necessary amendments further improve the estimation accuracy.

3.4 emphasis on building construction projects, economic evaluation of the project economic evaluation in the feasibility study and evaluation process, the use of scientific and economic analysis, the project construction period and production period, a number of economic factors, input-output survey, forecast, research, computing and demonstrate, by comparison options, recommend the best decisions the project an important basis for economic evaluation of the feasibility study and assessment of the core content of the decision with the project, its purpose is to maximize investment in economic and social benefits, Therefore, the project must be done in decision-making stage of economic evaluation. Links to free download http://www.hi138.com
Economic evaluation of projects should follow the dynamic analysis and static analysis combined quantitative and qualitative analysis combined with macro-and micro-benefit analysis-benefit analysis of the combination of the magnitude of value analysis and in-kind combination of quantitative analysis, predictive analysis and statistical analysis principles, Complete the following main tasks:
(1) completion of the project related to market supply and demand forecasts, analysis of the proposed size, location, technical solutions and so on.

(2) calculate the project's estimated investment of the project is completed and analyzed to predict the economic benefits, considering the balance between financing and to predict the profitability of post-production, investment liquidity and other economic indicators.

(3) select the best investment program, and make concluding comments or suggestions, as investment decisions and economic feasibility evaluation.

4. Conclusion As China's socialist market economy system and the WTO accession, decision-making phase of the project cost control and then gradually try to international practice, but there are not suited to foreign experience, and many other aspects of China's national conditions and defects inadequate view of the entire construction project decision-making project cost control and management where the importance of, and only from China's national conditions, to determine the size of the project from a rational, reasonable level of construction standards, a reasonable choice of built-up areas and the site and reasonable engineering technology programs aspects, in order to truly achieve the project cost control in order to improve investment returns.


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