Description of engineering materials on cost management

Summary of Engineering materials Cost Management project Cost Management is an important part of total project cost of about 60%, showing that the cost of materials directly affects the profit and loss of profits of the project, and that materials with greater space saving, therefore, control material cost is the key to controlling project costs.

Keywords Engineering Materials Cost Management
Currently, the project cost of materials management problems were: the
1. As the construction by the traditional management concepts, business leaders awareness of the cost of materials management is not strong, that much less to implement, especially the weak link in the project material budget analysis.

2. Changes in market prices of materials, lack of adequate analysis and forecasting capabilities, resulting in the purchase price is too high, the cost impact of Engineering materials.

3. Lack of funds business, purchasing on credit intangible increased project cost of materials.

Through the above-mentioned drawbacks of the material Cost Management analysis, to mention a few Engineering materials to improve Cost Management.

First, enhance the sense of leadership, to strengthen the material Cost Management efforts to implement the rules and regulations. Leadership attention is the material cost control efforts to carry out key costs involved in full control, the top leadership must drive, which determines the cost of materials management at all rules and regulations in the project implementation level. Business leaders should pay attention not only in terms of ideology, but also in action themselves, monitor their implementation so that implementation of the project who can truly act according to rules and regulations, otherwise, those systems on a dead letter, a mere formality.

Second, early in the tender, the correct amount of materials, budget estimates and price bids, pre-control from the source to do the work. Project completion cost of materials to make a profit depends largely on when the tender offer and the amount of material, so when the correct measure in the tender and the tender price of material consumption is particularly important, therefore, the correct amount of materials and tender price estimates is particularly important to do so not only can effectively control the amount of material for future projects, but also provide the basis for the purchase of materials.

Third, improve the management of the project materials, the specified rules and regulations must be strictly implemented, mainly in the following areas:
1. Procurement of materials / schedule of the works required planning and preparation of the budget book is the material basis for the procurement of materials.

2. Materials before entering the study and evaluation of suppliers, purchasing three compared with the bidding, but also control the project an important part of the cost of materials. First, the person in charge of project-related materials to the procurement of quality, price, service and other aspects of market research, and finally filter out 4-5 at home to meet the requirements of the supplier, as an alternative. Links to free download http : / / www.hi138.com 3. Strengthen the procurement process, contract management, to avoid or reduce economic losses caused by the dispute to the enterprise.


Procurement contracts should be based on an equal footing, mutual benefit and signing of the principle, specific to the material purchase contract signed, we must first conduct a comprehensive understanding of the procurement of materials, including product specifications and features, pricing unit, acceptance criteria, storage requirements, etc. related to the project department responsible in conjunction with the project economist, quality control personnel with a contract signing process to pay attention to the problem, including product characteristics, mode of transport and storage requirements, acceptance criteria, the burden of freight, payment, dispute resolution and force majeure when the burden-sharing, and the warranty provisions of the retention money. In addition, the project department of the change negotiations is also important. If it is not in the tender offer materials, when the death of one package price, the project department at the signing of purchase contract, must be combined with material budget price, such as the purchase price exceeds the budget price, to do the Party recognized price visas.

4. Strengthen the material procurement and inventory management approach. Must be based on budget construction materials procurement, materials, approach to have the factory certification, material quality certificates and test reports, materials procurement approach strict customs. Establish and improve on-site materials management system, attention to materials management, strengthen the basic work, materials management personnel to enhance the sense of responsibility, according to the material properties a reasonable stack, combined with the timely construction of the stacked position changes dynamically adjusted, to facilitate the easy construction, to reduce the secondary transport.

5. Materials limit the library and picking management. To set up hand, in strict accordance with the limits provided by the foreman to send material requisition, material behavior of non-super-budget fat. Sends the material department but also to prevent the wrong hair, spam and other unplanned use material, material from the source to do the "targeted." establish and improve various types of materials accounting, strengthen dynamic management materials, to reduce the unreasonable waste of material. end of each month on-site inventory and warehouse materials, cost and financial accounting for the next month purchase of materials to prepare.

Fourth, establish a scientific assessment of the quantitative indicators include are:
1. Save the project to develop materials based on indicators, assessment of the responsible person, such as the completion target, to give economic incentives, otherwise, make the appropriate punishment.

2. Establish standards for materials procurement price, the project economist responsible for monitoring all key material according to market price changes, the tender budget price and cost information on a regular basis the purchase price of a standard material, prompting buyers sourcing, shop around, keep the lower purchase price . Reduce procurement costs for the completion of the task of procurement staff to reward, did not complete the task, analyze the causes, and be punished.

3. On-site managers in accordance with limits picking transceiver situation, the working tools and on-site materials management, combined with the attitude of giving some reward and punishment.

Fifth, strengthen the management of materials costing To develop effective methods of cost accounting management, solid accounting foundation, a clear division of responsibilities, and enhance cost-conscious management and responsibility, such as, 1 project manager division should be based on construction progress inventory output value per month and next month plans to complete the case, the preparation of the financial sector combined with materials expected monthly gross income, the total cost and the actual completion of the report. 2. end of each month, material, financial officers with the project to conduct an inventory of existing materials, according to fixed material consumption to be controlled, to grasp the material savings of over consumption. 3 regular meetings of Engineering materials cost analysis, lessons learned, find problems, suggest improvements.

In summary, the cost of construction project materials management long way to go. Is the only real leader on budget, and improve the materials management system, increase the material cost accounting and assessment of efforts to enhance the overall cost of materials management, the project can really reduce costs, increase revenue. Links to free download http://www.hi138.com