Wednesday 9 February 2022

3 key aspects of project cost control

The implementation of the "project law" management of engineering construction, the implementation of management and labor service layer of the construction enterprises to separate the management and labor layer, the formation of engineering project management department to manage the project, the introduction of labor team for construction, has been from people do not know and do not get used to gradually mature, and has become the consensus of people. under such a consensus, how to effectively control the cost of project construction has become a major event in whether each construction project can achieve considerable economic and social benefits. the management and implementation of construction projects is a dynamic process, in this dynamic process, to grasp each link to achieve cost control, i think there are three major links are the most critical: the human link (project managers and construction personnel), the material link (building materials and equipment), the organization of construction links (construction programs and construction processes).

The human link

the organizational management of the construction project is the responsibility system of the project manager, so in the selection of the project manager, it is necessary to take into account whether the project management function can be further fully utilized, improve the overall management level of the project, and achieve the ultimate goal of project management as the benchmark point. because a good project manager can make the project management department a well-controlled, easy-to-run, and efficient organization. 


Such an organizational structure can effectively complete the construction project management objectives, effectively cope with various environmental changes, form organizational strength, make the organizational system operate normally, generate collective thinking and collective consciousness, and complete the management tasks of the project department. then, the quality of the project, the corporate image, the implementation of the corporate brand strategy, the increase in intangible assets and tangible assets of the enterprise, are all related to the project manager, and more importantly, the choice of the project manager has become the key to whether the cost of the construction project can be effectively controlled.

As the first person in charge of a project contractor, the project manager may fully exercise the power of people, property and property within the scope of the authorization of the superior. therefore, who to choose as a project manager, according to the needs of the construction project, with different project needs to choose different qualities of talents, at the same time, it is also required to have certain leadership skills, political quality, theoretical knowledge level, practical experience, time concept and other basic qualities. in addition, it is also necessary to sign a reward and punishment contract with the project manager, not only to mobilize the enthusiasm of the project manager, but also to restrain it to prevent the loss of control of the cost of the construction project.

Construction personnel are also an important point in the human link, to select high technical quality and stable work, moderate labor price labor operation team and personnel, the implementation of dynamic management. 


It is necessary to rationally arrange the work surface, encourage workers to use sufficient working hours, complete more operational tasks, improve the quota level and the labor productivity of all employees, strictly assess and measure and settle according to the quota task list, implement more work and more gains, and fully mobilize the enthusiasm of construction personnel to control the cost of construction projects. 


The key to the cost control of construction projects lies in people, only by giving full play to the enthusiasm of cost control personnel, especially the enthusiasm of construction personnel at the construction site, enhancing their sense of responsibility and the consciousness of cost control, and working together can we do a good job in cost control and the cost of construction projects can be effectively controlled.

The link of things

Materials are the main body of building products, because the material cost required for the project accounts for about 60% to 70% of the total cost, obviously in the construction project, in order to control the total cost of construction, it is necessary to attach great importance to the cost control of materials. this requires the strengthening of the management of materials and machinery and equipment, specific to every detail, to reduce unnecessary economic losses during the construction process. 


For example, the implementation of quota ingredients, according to the actual situation with each team or subcontractor to determine a reasonable loss rate, the implementation of dry use, saving rewards, excess penalties. the amount of materials used is linked to personal economic benefits, and a receipt record system is implemented to establish detailed accounts to prevent on-site warehouse accounts from being inconsistent with physical objects. when picking materials, the construction team should count and confirm, strictly follow the procedures, and eliminate loopholes such as waste and theft. reasonably determine the purchase batch and batch, reduce the material reserve as much as possible, and rationally use the construction funds.

At the same time, in the use of machinery and equipment, it is necessary to formulate a practical, scientific and reasonable construction allocation plan according to the investment environment of the project, the nature of the project, the design requirements of the construction organization and the provisions of the bid. the model, specifications, and capabilities of the configured construction equipment are adapted to the engineering tasks and the environment, and the mechanized construction capacity that matches the amount of engineering is formed. 


The prevent the tendency to one-sidedly pursue new, large, large, multi-faceted and advanced construction equipment. strengthen the maintenance of field equipment, reduce the cost of overhaul, regular maintenance, etc., avoid idle equipment caused by improper planning, make full use of idle mechanical resources, and reduce the price of mechanical bench shifts. therefore, in mechanical equipment, the purpose of reducing costs should be achieved by focusing on the rational use of mechanical equipment and the control of mechanical equipment costs.

Organize the construction process

this link is the most dynamic and complex part of the whole project construction, and the success of its operation directly affects the effectiveness of the cost control of the entire project, and even the success and failure of the project. this requires that when organizing construction, we must be based on the principles of science, rationality, seriousness and meticulousness, and proceed from the reality of the project to effectively do a good job in this link.

in the formulation of construction plans, fully do a good job in the selection of construction plans at all stages of the project, and choose an economical and reasonable construction plan, which can reduce the cost of the project. therefore, in all stages and links of the construction of the project, it is necessary to compare the construction plan, and achieve the purpose of the lowest cost and the highest efficiency through this method. 


For example, in the early stage of the construction of the project, there are temporary facilities to build problems, temporary facilities can be adopted self-construction, leasing, self-construction and leasing and other schemes, which requires the construction environment, construction period and other factors and conditions, to choose the most economical and reasonable program. in the choice of construction machinery and equipment, it is necessary to go through full demonstration and decide whether it is necessary to buy or lease, because the proportion of machinery costs is very large, and if it is only based on personal arbitrariness and does not pay attention to science, it may cause huge losses. 


Therefore, in the formulation of the construction plan, it is necessary to combine the scale, nature, complexity, site conditions, equipment, personnel quality and other aspects of the project, compare from the feasibility, rationality and economy level, and select the best construction plan in order to achieve the purpose of cost saving.

The construction process is a necessary factor for the formation of construction quality and safety management, and construction quality and safety management are important tasks to achieve effective management of engineering projects and achieve construction cost control of the entire project. in the whole process, it is necessary to strictly abide by the process flow, to strictly follow the construction specifications and operating procedures, to control the quality of the process activity conditions, the use of mathematical statistical methods, through the statistics and analysis of the data tested in the process part, to determine whether the quality is stable and normal, so that the process is always in a good controlled state. 


The same time, the implementation of self-inspection, mutual inspection, handover of the three inspection system, timely discovery and correction of errors in the construction process, the quality of the project after the inspection to advance control. in addition, it is also necessary to strictly enforce the operating procedures for safe production, do a good job in all aspects of labor protection and safe production, strengthen inspection and supervision, and timely discover and solve hidden dangers of accidents. thus avoiding the loss caused by the occurrence of quality and safety accidents.

Since the construction process of the project is a dynamic input and output process, there are many factors that affect the cost of the construction project. in general, in order to do a good job in cost control. 


It is necessary to carefully analyze the factors and results that affect the cost of construction projects according to the actual conditions of different construction projects, and grasp the above three important links in order to timely, accurately and effectively control the cost of construction projects, achieve the goal of maximizing the profitability and minimizing costs of construction projects, and improve the social and economic benefits of enterprises.

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