Wednesday 15 December 2021

Improve the level of project cost management



The project cost management itself is not only a matter of the construction project department, from the construction enterprise internally related to the company and the project department two levels, these two levels affect the construction project cost management factors are many, the author believes that the cost management into practice, so that the project cost in a controlled state, the company should do a good job in seven aspects of the work, the project department should also do a good job in seven aspects of the work, the so-called "seven on seven."

Seven things for companies

1. The determination of enterprise managers

It is the premise of doing a good job in the cost management of construction projects to do a good job in the cost management of construction projects, and then improve the management level of the whole enterprise in an all-round way, is a basic strategy for the development of enterprises, is a long-term and arduous task. in order to improve the management level, we must adopt advanced management concepts and management means, the enterprise and project management process restructuring or reconstruction, to change many of the current practices, which is bound to affect the original work habits, and even affect the vested interests of many people, so whether this work can be carried out smoothly, can continue to carry out steadily, first of all, depends on the determination of enterprise decision makers, enterprise decision makers' determination and participation is the prerequisite for good construction project cost management.

2. Fully understand and integrate the whole

The process construction project management business link for a construction project, which should include all businesses from the market start-up phase to the after-sales service phase, company managers should fully understand the work of each business node and the logical relationship between the businesses. that is, what prerequisites are required for each job to begin, which work or what work results, and what results the work produces, and what results are the starting conditions for which work or which work.

Determination of business content and business relationship is the basis of the project work, the project work can only be carried out smoothly if it is placed under its constraints.

3.Choose the right management

Concept and management method at present, project management and construction enterprise management should be a relatively new subject, both domestic and foreign theoretical workers and practitioners are constantly researching, constantly exploring, is in the stage of all the hundreds, groups, and with the computer technology and network technology and other advanced technology means continue to appear, management theory and management methods are constantly changing, which is not only an opportunity to choose a decision is a difficult problem. at the same time, managers must also take into account the differences between theory and practice before making decisions, taking into account the differences between domestic and foreign, taking into account the differences between the projects managed by enterprises, taking into account the basic situation of enterprises themselves, so it is very important to choose a practical and effective management concept and management methods.

4. Reasonable determination of project

cost management assessment standards to manage project costs, there must be a clear direction of efforts and assessment criteria, only clear project cost management objectives, in order to make the project cost management has the direction of efforts and assessment basis, therefore, each project before the implementation of management (pre-construction preparation stage) must be clear project cost management objectives. project cost management objectives include two aspects:

(1) determine the criteria for project cost management

managing costs is not simply to complete the profit indicators, a bid will know that it is definitely a loss-making project, good construction costs of the standard is what? this will be an important conceptual problem to measure the quality of project cost management, in the absence of a clear concept, it is difficult to evaluate the construction project cost management. therefore, the evaluation of good and bad project cost management should be based on the work responsibilities of relevant personnel in the process of project implementation. to break down the cost target, the quantity price should be separated, and the evaluation should be refined.

(2) determine the project cost control indicators

in order to implement cost management and control, it is necessary to determine cost control indicators, including: total project cost, subcontract price level, material price level, sub-item material consumption, machinery cost level, rental unit price, and management cost level and so on.

5. Establish a sound management

The mechanism and restriction mechanism construction project management often appears "one put out of control, one tube dies" situation, the way to overcome this situation can only rely on the establishment of a sound management mechanism and restriction mechanism, not just rely on human quality, responsibility and ability, therefore, whether a company has a sound, reasonable and effective management mechanism and control mechanism, and strictly implement, for the management of project costs is also crucial.

6.Reasonable reward and punishment

The policy and really fulfill the implementation of the punishment policy can make project managers bear the risk of cost management, at the same time, the corresponding incentive policy can also reflect the management of costs for managers to bring benefits, the establishment of a sound reward and punishment policy is the basic guarantee of managing project costs.

7.Information system is the

The foundation of cost management modern enterprise management is characterized by the use of advanced technology to improve the existing management situation by means of advanced and reasonable management, many advanced management ideas must be realized with the help of computer technology and network technology. therefore, the timely use and promotion of computer software systems based on computer technology and network technology is the basis for cost project management. at the same time, the promotion of software system is not only to adapt to the new management mode, but also to objectively supervise and promote the reform of construction enterprise management, which is of great significance, and is also one of the key elements to manage the cost of construction projects.

Seven things for the project:

1. Establish a strong sense of management

The management consciousness of the project department implementer seriously affects the quality of project management, and the training of the project department personnel management consciousness should be strengthened.

  • The determination and confidence of the project manager.
  • Establish a full cost awareness.
  • Work with the sense.
  • Cost control awareness.

2.Clear project cost

The management objectives project department to do a good job in cost management also need to clear management objectives, only clear objectives can be targeted, only clear indicators can be controlled, therefore, in the early stage of the project to determine cost management objectives for the management of project costs is very important.

3.Develop practical construction

Plan construction program, including: schedule, mechanical use plan, working materials use program, layout plan, etc., is the largest cost reduction mobile space, but also the most reflective of technical personnel and managers intelligence, the loss of bad program is the implementation process can not be made up, the cost savings generated by good program is also difficult to achieve the implementation process, therefore, the preparation of practical, optimizing the impact of cost-saving construction programs on project costs is critical.

4.Establish a complete

The business process and management system the realization of cost management objectives is achieved by means of control in the construction process, and the project cost is mainly reflected in the consumption of various resources, in order to control the consumption of various resources, there should be standardized and reasonable business processes and strict and appropriate management system, and even to standardize the process, to establish the corresponding control mechanism, there is no relative standard business workflow, then the business work is disorderly, all based on personal conscience and ability to manage, the management results are naturally very different, can not guarantee the general level of management, therefore, refine and improve the business process and management system is the key element to manage the cost of construction projects.

5.Clarify the internal cost management relationship

Of the project department and implement the division of cost responsibilities for the project department, to find out which departments, what positions are responsible for controlling, that is, cost management of the "ring" process, cost problems are caused by what causes, only in this way can the cost control into practice, in order to achieve full, all-round cost management.

6.The use of information management system under the traditional manual operation conditions.

It is very difficult to implement perfect process management and dynamic control, only with the help of computer management system can be realized, therefore, the use of information system is also a necessary means for the project department to do a good job in cost management.

7.Develop supporting incentive mechanisms

The reward and punishment policies any new management model of reform or changes in management tools will cause users temporarily unacceptable, or even produce resistance, hope that through training to raise awareness can consciously implement i am afraid is not a realistic approach, supporting incentive mechanisms and reward and punishment policies are often effective practices, therefore, the development of supporting incentive mechanisms and reward and punishment policies for the management of project costs is also very important.

In short, in the new competitive environment, accurately predicting project cost, monitoring the cost occurrence process and analyzing the cost occurrence will become the focus of project cost management of construction enterprises. 


If enterprises and projects can seriously do this "seven" work, and on this basis, the accumulation of cost data, i believe that not only for the future bidding work to lay the foundation, but also for the better implementation of project control to provide a reliable basis, and can promote the overall level of enterprise management.

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