Thursday 10 February 2022

Construction engineering: talk about cost control of engineering projects

The core problem of realizing the management control cycle is the effectiveness and coordination of the cycle of each link of the project cost control. the object of project cost control is the input-output benefits reflected in the post-project evaluation. completion settlement is the last hurdle of project cost control, and if it cannot be strictly controlled, it will cause irreparable losses. this is a meticulous and specific work, and the calculation should be serious, meticulous, not a lot of calculation, and no omission. at the same time, we must respect reality, do not calculate much, do not overestimate and calculate, and maintain good professional ethics and self-credibility. on the basis of the above, we will ensure the accurate contract of "quantity" and "price", do a good job in project settlement to eliminate virtual reality, and promote a virtuous circle of completion settlement.

the content of the project cost review

first, the audit of the amount of engineering

1. the calculation of the amount of engineering should be accurate

when calculating the quantity of each division, each division has its own prescribed calculation rules, which must be implemented in accordance with the provisions of the quotation table, grasp the work content contained in the subheadings of the quotation scale, and review whether the unit of calculation of the quantity is consistent with the applied quota unit. for example, for the calculation of the amount of slabs, beams and columns in the concrete part of civil engineering, the column is calculated in the floor at the clearance height that is, the plate thickness is deducted, and the beam is calculated by deducting the plate thickness.

2. review the changed projects, visas, and approve the amount of work

the on-site visa and design modification notice should be verified according to the actual situation. if a part of the construction has been completed, the rework fee shall be calculated, and if the change is notified before construction, the quantity part of the original drawing shall be deducted. in addition, it is necessary to check whether the content of the visa duplicates the content of the contract. for example, for the pumping desk visa that excludes rainwater, the content of the dry fee package in the quotation table has been included, and this part should be deducted from the settlement.

second, the review of unit price application

1. review of unit price application

the review of unit price application is to review whether the application price list is reasonable and accurate, and whether the project has been repeatedly applied. for example, in the decoration project, the work content of the wall has included the part of sweeping ash water, and the unit price of the latex paint should be deducted from the part of cleaning ash water. in the foundation project, if the foundation work with a depth of less than 2 meters has implemented the supplementary price of the earthworks in the quota, and the appendix has included the original soil backfill content, this part of the unit price should not be applied. in the case of a bidding project, the unit price is examined to see if it matches the unit price of the bidding quotation.

2. review whether the calculation of the price difference of the main material of the applied quotation table is reasonable

in the process of applying the pricing form, the price of the main material used and the main material of the quotation table are different, and it shall be implemented in accordance with the provisions of the relevant documents and the quotation table. it should be noted that the material price should be included in the direct fee according to the original base price, and the price difference part should be calculated separately as the price difference of the main material in the fee table. otherwise, the comprehensive fee is calculated.

in short, it is necessary to prevent the unit price from being applied, high and heavy.

3. review of fee collection

the fee shall be determined according to the documents and regulations issued by the local project cost management department, combined with relevant documents such as contracts, bidding documents, etc. the following issues should be noted in the work.

1. review whether the fee schedule for implementation is consistent with the nature of the project. for example, for a newly expanded project, the billing table for the renovation project or the billing meter for the decoration project cannot be applied.

2. whether the construction enterprise's fee level or the type of building to which it belongs is consistent with the billing of the fee table.

3. whether the billing rate taken is correct.

4. whether the price of the main material is consistent with the time taken according to the material price specified in the project contract.

5. for projects with lower rates or lower total prices, special attention should be paid to whether the changes or new projects are down year-on-year when settling. audit method of project cost because the production process of construction projects is a long cycle and large quantity of production and consumption process, it has the characteristics of multiple pricing. therefore, the use of reasonable audit methods can not only achieve the effect of doubling the results with half the effort, but also directly related to the quality and speed of the review.

the main audit methods are as follows:

1. comprehensive audit law

the comprehensive review method is to comprehensively review the quantity of projects, the price form price and the cost calculation in accordance with the requirements of the construction drawings, combined with the current quota, the design of the construction organization, the contracting contract or agreement, and the provisions and documents related to cost calculation. 


This method is actually basically the same as the method and process of budgeting construction drawings. this method is often applied to construction drawing budgets; projects with low investment, such as maintenance works; the project content is relatively simple projects with few sub-projects, such as fences, road retaining walls, drainage ditches, etc.; 


The construction unit reviews the budget of the construction unit, etc. the advantages of this method are: comprehensive and meticulous, high quality of review, good effect; the disadvantages are: the workload is large, the time is long, and there is duplication of work. in the case of a large investment scale and tight audit schedule requirements, this method is not advisable, but the construction unit still often adopts this method in order to strictly control the cost of the project.

2. key review law



This method is similar to the comprehensive audit method, and the difference between it and the comprehensive audit method is only the difference in the scope of the audit. the usual practice is to select projects with large projects and relatively high costs for key review. such as foundation engineering, masonry engineering, concrete and reinforced concrete engineering, doors, windows and curtain wall engineering. high-rise structures should also pay attention to the quantity review of internal and external decoration projects. 


Some ancillary projects, sporadic projects, awnings, scattered water, ramps, open ditches, pools, garbage bins, etc., are often ignored. secondly, focus on verifying the unit price corresponding to the above-mentioned project quantities, especially focusing on the unit price that is easily confused under the quota sub-item. in addition, the calculation of costs and the price of the material difference should also be carefully verified. the advantage of this method is that the workload is relatively reduced and the effect is better.

3. comparative review method


In the same area, if the purpose, structure and construction standards of the unit project are the same, the cost of the project should be basically similar. therefore, on the basis of summarizing and analyzing the pre-settlement data, we find out the regularity of the cost and material consumption of similar projects, and sort out the unilateral cost indicators and material consumption indicators of projects with different uses, different structural forms and different regions. 


Then, according to these indicators, the audit objects are compared, and the sub-projects that do not conform to the investment rules are found from them, and the key calculations are carried out for these sub-items to find out the audit methods for the reasons for their large differences. commonly used analysis methods are:

1. unilateral cost index method: through the comparison of the cost per square meter of similar projects, the accuracy of the cost can be directly reflected;
2. proportion of branch projects: foundation, masonry, concrete and reinforced concrete, doors and windows, enclosure structures, etc. each account for the proportion of the fixed direct cost;
3. proportion of professional investment: civil engineering, water supply and drainage, heating and ventilation, electrical lighting and other majors account for the proportion of total cost;
4. material consumption index: that is, the analysis of the consumption of main materials per square meter, such as steel, wood, cement, sand, stone, brick, tile, labor and other major materials unilateral consumption indicators.

4. group calculation review method



It is a method of dividing the relevant items in the pre-settlement into several groups and using one data in the same group to review the amount of sub-projects. in this way, a number of sub-projects are first grouped into adjacent and intrinsically linked projects. using the relationship between sub-projects in the same group with the same or similar calculation base, a review of the quantity of one sub-project can determine the accuracy of the other sub-project quantities in the same group. 


For example, the ground floor area, the ground ground area, the ground cushion layer, the ground surface layer, the floor area, the floor level, the floor volume, the ceiling plastering, the ceiling paint surface layer are grouped into a group, and the ground floor area and the floor floor area are first calculated, and the amount of other sub-projects can be obtained by using these bases. the biggest advantage of this method is that the review speed is fast and the workload is small.

5. screening method


The screening method is a kind of overall planning method, by finding out the basic values of the amount, price and labor of the sub-project on each unit of construction area, it is summarized into three unilateral basic value tables of engineering quantity, price and labor, and when the construction standard of the budget reviewed is different from the standard applicable to the "basic value", it must be adjusted. the advantages of this method are that it is easy to understand, easy to master, fast to review, and quick to find problems. however, the resolution of the errors has yet to be reviewed.


In summary


The control and management of engineering cost is a dynamic process. the changes in the market economy make the determination and control of project investment more complicated, which requires the management of project costs to be both comprehensive and focused. at all stages of the project implementation process, it is necessary to always have the economic mind to control the cost, carefully analyze and make full use of the important information in the construction cycle, grasp the pulse of the market economy, reduce or avoid the loss of construction funds, and maximize the investment efficiency of construction funds.

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