Fixed budget based on Project Cost Management Discussion _ Paper Network

Thesis network: [Abstract] quota management as a technical and economic disciplines, is a technical, practical, comprehensive and strong policy areas. In this paper, the object of study as a fixed project budget, cost control, its use in specific methods and techniques were discussed.

[Keyword] cost, a fixed budget; costs

The so-called fixed, refers to certain technical conditions of production, the production units of qualified products consumed by the human, material and financial resources of the number of standard scale to form a science of business management, began in the late 19th century, it is the capitalist enterprise management scientific form closely linked. project cost is for the construction of a project takes the full cost from the project to determine the intentions until the completion of construction, completion and acceptance of the entire construction period until the total cost paid .

1 characteristics and composition of the project cost
1.1 Project Cost Features
1.1.1 a single piece of
Each project has a specific purpose, with a different structure, shape and decoration, different size and area, construction should use a different Technology, equipment and building materials, even the use of the same project, its technical level, construction levels and building standards there are differences, which makes the project vary in physical form, but also lead to project cost vary, so the project can not be like for industrial products, as can species, size, type and quality of the batch to pricing, but only a single piece pricing.

1.1.2 number of
The project's production process is a long period, large quantities of production and consumption process generally includes: submit project proposals for feasibility studies, preliminary design, construction design, engineering, bidding, contract implementation and completion of the acceptance phase. In order to meet the parties to the process of project construction and project management, and economic relations, project cost control requirements, need to follow the design and construction phase of several valuation.

1.1.3 breakdown of
Generally speaking, each project is composed by a number of individual projects, a single project by several units of engineering components, a unit composed of engineering projects by several Division, an arm of the project can be divided into several sub-projects, and preparation of project cost from the sub-project started by the layers of aggregate project costs, plus costs of purchasing equipment, furniture, industrial equipment and production acquisition costs and construction of other costs, constitute the entire project cost.

1.2 Project Cost composition
Project cost by the construction and installation costs, equipment and industrial equipment purchase costs, construction of other costs, reserve fund, the financial cost component. Construction and installation cost is paid to the construction unit in the construction and installation works that the total cost of production, by direct construction costs, indirect costs, profits and taxes constitute a plan. equipment, industrial equipment costs from the costs of purchasing equipment and industrial equipment, production costs of purchasing furniture components.

2 of project cost increase was mainly attributable
2.1 design standards and raising the level of support
With the continuous improvement of living standards and the health, safety, pay more attention to environmental protection, construction, engineering design standards and supporting level is rising. The city's shanty towns have gradually been low, beautiful environment, a variety of functional facilities residential district to replace not only the general size, but also double, hop and villa units, and water, electricity, gas, telephone, television, broadband network and other facilities home home, these changes will certainly bring engineering cost increase. people on health, safety, environmental protection and sustainable development seriously, also contributed to rising construction costs, another important factor.

2.2 material prices
With economic development, materials prices is inevitable, especially non-renewable raw materials (such as coal, oil, gas, etc.) is especially true, materials, prices will inevitably lead to project cost increases. In order to effectively control the project cost increases, we must first improve the technical level of equipment as soon as possible, to increase Technology Investment, by using a more reasonable construction methods, construction equipment, save more advanced material. Second, to strengthen management, to prevent the construction materials of the "run, run, drip, drain." Finally, in the procurement of materials to strengthen supervision on the part of, really quality, price, shop around, through online purchasing, group purchasing that is a desirable good way.

2.3 increase the standard fee and fee increases to take
Original standard fee increase and new projects to take charge of the project cost has caused a significant impact, and some is due to changes in national policy, such as in recent years, and labor wages from the surcharge on 14% of welfare, trade union funding of 2%, 1.5% and other educational expenses, based on the additional 20% of basic pension insurance, basic medical insurance, 3%, 2% unemployment insurance, industrial injury insurance, 2%, 1% of women workers maternity insurance, 6% of the housing provident fund, supplementary pension insurance, etc. 7 5% 39% Total 56.5%, an increase of 2.23 times than in the past. and some is due to improve the quality of construction, or to speed up the construction progress and the use of more advanced construction equipment or increase in construction Technology, such as in many mechanical engineering construction works would certainly cost more than the push shoulder the cost. Links to free download http://www.hi138.com
3 project cost control measures
3.1 control of decision-making stage
Investment decision-making stage as the construction of the initial stage of the project cost control has a decisive role in building programs should be optimized based on the preparation of high-quality Investment estimates. The choice for the plant to ensure that construction projects can achieve a more low production costs and higher economic efficiency, have a significant impact on project cost, according to various factors of production the situation carefully chosen. In general, agricultural products, mineral products processing enterprises should be close to the initial raw materials, consumer goods production should be close to consumption areas, etc. The proposed project is the production Technology used in products and manufacturing methods, processes, advanced application and selection criteria of economic rationality. equipment used according to the need to use domestic equipment or imported equipment, while Note that the co-ordination between the two, but also pay attention to equipment and plant facilities and so on. is the preparation of construction standards, assessment and approval of construction projects, feasibility studies, design plan and an important basis for the preliminary design, but also the supervision and inspection of the scale of the project cost . construction standards can play the role of project cost control, the key is set at the standard level is reasonable, should insist on the application, economic, and security principles.

3.2 Control design
Design phase is to build the entire process of impact on the biggest stage of the project cost, according to statistics, by the end of the preliminary design, the impact of the project cost decreased from 95% to 75%, to end the technical design, the impact of the project cost decreased from 75% to 35%, to end construction design, the impact of the project cost decreased from 35% to 10%, while the construction phase, through technical measures to save the possibility of project cost only 5% to 10%, so pay special attention to design phase control. The first is to improve the design of more program choices, and strict supervision to review the preliminary design, technical design, construction design and construction design, in-depth study on the technical side the possibility to save and invest, but also improve the economic evaluation and analysis, correctly handle the advanced Technology and the relationship between economic rationality, and strive to be advanced and the harmonization of economic and effective method is to actively promote the design and standard design limits.

3.3 The implementation phase of the control
Project construction phase is to build value and use value to achieve the main stage at this stage, although the possibility to save and invest a small, but a waste of Investment possibilities is great. Alone control engineering terms of the contract the payment is not enough In the construction process, causing increased Investment, there are two reasons for the delay duration: one person can not control the Investment control or difficult to control factors such as unforeseen factors (natural disasters, social unrest, and the other is control, such as organization, technology, contracts, etc. Therefore, to effectively control the construction phase of the project cost, we must strengthen the design review, the strict execution of the contract terms, to improve construction organization, reduce human causes of waste.

Various stages of construction of the project impact the project cost factors vary, but runs through the fixed project budget, the level of fixed Investment projects directly affect the success or failure. Fixed standards embodied in the social average advanced level, but not the most advanced level, to improve the input-output ratio, reducing construction costs, we must strengthen the management, first unit is designed to update the design, improve design quality, make the design to achieve the desired depth, reducing the missing items omissions, followed by the construction unit to vigorously promote the use of new techniques, new methods and new materials to enhance the construction organization, in every possible way to reduce costs. The third is to build a demonstration unit to strengthen the pre-project work, the advanced nature of the project, economic and operational unity well to avoid the formation of "beard project", or in the construction process a large number of design changes had to be adjusted budget finally is to actively promote the construction of the bidding through a competitive and reasonable to reduce the project cost.


References:
[1] Chen Qinglin. Fixed project budget in the cost management of applied research [J] Construction and Design, 2009, (10).

[2] Yang Hongli. On the construction phase of the construction unit cost control [J] managers, 2010, (07).

[3] Cao Jing. Construction project construction phase of the project cost control measures [J] Heilongjiang Science and Technology Information, 2008, (18) Links to free download http://www.hi138.com