Construction Cost Management

Preface：Construction phase of the project implementation unit construction cost

management to control the cost of the project is reasonable in the project to meet quality standards premise, in the investment decisionmaking stage, the design phase and construction phase of the project put the project approval occurred in the control limits, strive in various construction projects rational use of human, material and financial resources to achieve good investment returns and social benefits.

The project cost control and management is a dynamic process. The dynamic market economy, to make the investment in the identification and control become more complex, this will require the construction units to the management of project cost to the project runs through the entire process, it is necessary to have a comprehensive focus. The construction management is the implementation of the entire process of project management. Project implementation phase of the project cost management can be divided into three parts: the tender management, construction management and settlement management.

1. bid organization system of biding and construction phase

Bidding for the construction phase of the construction units Bidding system control engineering cost effective means, bid organization can improve the costeffectiveness of construction projects and ensure the quality of construction projects, shortening the construction cycle and return on the investment, construction units can take full advantage of bidding for the effective means of cost control.

Construction No. 10 on the 7th ministerial decree issued a 'contract with the Construction Contract Pricing Management.' clearly pointed out in bidding for projects using inventories. This requires the building of units conducting the tender exercise, in the tender document to include not only the usual content, like tender notes before schedule, tender notes, the conditions of the contract, the contract terms of the agreement, contract format, technical specifications, drawings, tender documents and other reference format, it is also necessary to provide the engineering inventory, Bidding as a reference document of the important components.

Construction units in the tender document for the project inventory, in accordance with state or local rules promulgated by the calculation that the reunification of the divided projects, unified measurement units and the reunification of the engineering calculation rules, according to design drawings to be calculated and statistical arranged, obtain the list. Quantities to be followed in the preparation of an objective, impartial, scientific, and rational principle. Compilers must have strong manly budget, and should have certain knowledge of the engineering design and construction experience, and the material and mechanical construction technology for comprehensive scientific knowledge, in order to calculate the volume of the works without heavy missed. The basis of which must be in accordance with state regulations engineering calculation rules, and the sub-projects division engineering units, and in accordance with design drawings, design essential Love tender documentation requirements are calculated.

Quantities of the project should have a testing general, the entries must be simple, while not appear Lousing wrong items Pricing should guarantee the correctness of the project. Should the requirements of the different grades separate engineering division, the situation was different; we may have different prices for the items separately. This requires the preparation of the list compilers, seriously study design drawings, Analysis of the tender documents include the elements of the work and the different technical requirements, all familiar with the process, and to the scene of serious investigation, is forecast to make possible the construction of the case, right will have an impact on the Price of projects to be broken down. In addition, because the project inventories to calculate the amount of the project is not complete engineering and consider the interests of the construction units, clearly paying the price for the same overall price, the quantity list by the number of actual construction is a practical terms.

In the evaluation and review of the tender offer should do the units total individual Price quotations and the comprehensive assessment. Price does not meet the requirements of individual shows Price meets the requirements, and the lowest total Price could not explain the single lowest bidder. Bidders often know the total cost to maintain the same circumstances; the project is likely to change smaller projects to lower the price.

Changes may be larger projects price increases to achieve the completion of clearing works will be added for the purpose. We would also do price and the corresponding quantity of comprehensive engineering assessment of the large volume of projects to focus on the price analysis. Price will do with the contents of the work, construction program, a comprehensive technical evaluation process, thereby preferred choice of a construction unit. Construction of the construction phase of the contract cost control basis. Signed tight construction contract, while strengthening the construction contract management can guarantee that the contract price is reasonable, legitimacy and reduce the performance of the contract A, B in disputes and safeguard the interests of both the contract, effective control of the works investment costs.

After the signing of the contract, to do the management contract documentation, contract and the supplementary contract agreement until the regular meeting site in minutes. Work contacts such as a single content of a contract extension and explained that the integrity must be preserved, in addition to estab

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