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Ningxia Xinyou Communication Supervision Consulting Co., Ltd.
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The Key Points in Improving the Project Cost
The published date:2014-2-20  Popularity:3030  Editor:admin

Building construction project cost for construction enterprise and project department itself is very important. However, due to various reasons, the project department cost management has not been very in position. Project materials management confusion, waste is serious, labor settlement dispute is serious, cost data aggregation is not timely, not really reflect; Company to the project cost monitoring failure. In our research has run into a company a project worth $1, engineering in the half, the case of loss has reached 20 million.

Project cost management itself is not just a matter of the construction project department, will tell from the construction of enterprise internal two aspects involved in company and the project department, the two level there are many influence factors in the construction project cost management, the author thinks that to implement cost management, make project cost control, the company should do a good job in seven aspects of the project department also want to do a good job in seven aspects of the so-called "seven on seven".

Company should do a good job of seven:

1. Determination of enterprise managers is the premise to do well the construction project cost management

Do well the construction project cost management, and comprehensively improve the level of the management of the enterprise, is a the basic strategy, to the development of the enterprise is a long-term and arduous task. To improve the level of management to adopt the advanced management concept and management methods, management of the enterprise and project process restructuring or re-engineering, to change many of the current practice, it is bound to affect the original work habits, and even affect the vested interests of many, so this can work smoothly, can be sustained and stable to carry on, first of all depends on the enterprise decision makers determination, enterprise decision-makers of determination and participation is the premise to do well the construction project cost management.

This point has been engaged in management reform has been widely accepted by researchers and practitioners, whether manufacturing ERP project or construction enterprise project management, is widely regarded as "top project".

2. To fully understand and integrate the whole process of construction project management business links

For a construction project, should include from the market starting stage to the after-sale service of all business, company management should fully understand each node of the job content, and the logical relationship between the business. That is to say, every job needs what condition can begin, which is the prerequisite for which job or work, the results of this work and produced at the same time which as a result, and the effects of which a few as which job or job starting conditions.

To determine the business content and business is the basis of the project work, project work only under the restriction of it can ensure the work smoothly.

3. Select the appropriate management ideas and management methods

Current project management and construction enterprise management should be still a relatively new subject, theoretical workers and practitioners in research at home and abroad, and constantly explore, is in the stage, pack, and thought and their exponents, moreover along with the computer technology and network technology of such advanced technology, management theory and management methods are constantly changing, the selection decision is not only the opportunities but also problems. At the same time, managers must also consider before the decision to the difference of theory and practice, considering the difference of domestic and abroad, considering the difference of enterprise management by project, considering the basic conditions of the enterprise itself and so on, therefore, choose good practical and effective management ideas and management methods will be vital.

4. Reasonable project cost management appraisal standards

Must have a clear direction and manage project cost assessment standards, only the clear target, project cost management to make the project cost management is the direction and assessment basis, therefore, each project (construction preparation stage) before the management must be clear project cost management objectives. Project cost management goals include two aspects:

(1) to determine the project cost management standards

Control cost is not a simple complete profitability index, a knew must be loss when bidding project, ensure that construction cost standard is what? It's going to be a measure of the importance of project cost management is good or bad conceptual problems, in the absence of clear this concept, it is difficult to evaluate the stand or fall of construction project cost management. The evaluation of project cost management is good or bad, therefore, should be established in the process of project implementation on the basis of relevant staff job responsibilities. Quantity and price to the cost target decomposition, separation, evaluation should also be refined.

(2) determine the project cost control target

To implement the cost management and control, it is necessary to determine the cost control indexes, indicators include: total project cost, the subcontract price level, material price level, partial material consumption, mechanical cost level, lease the unit price, and cost management level, and so on.

5. Establish a sound management mechanism and restriction mechanism

Construction project management often appear "put it out of control, a tube die" situation, ways to overcome the the situation only by establishing a set of perfect management mechanism and restriction mechanism, and can't just rely on people's quality, the sense of responsibility and ability, therefore, if a company has a set of sound, reasonable and effective management mechanism and restriction mechanism, and strictly enforced, to ensure the project cost is also very important.

6. Reasonable rewards and punishment policy and its implementation

Punishment policy can make the project managers to assume the risk of cost management, at the same time, the corresponding incentive policy can also reflect manage cost for the benefits of management personnel, establish a set of perfect the rewards and punishment policy is the basic guarantee for the control project cost.

7. Information system is on the basis of cost management

Prominent feature is the modern enterprise management, using the advanced technology and the use of advanced and reasonable management mode to improve the existing management status, many advanced management thoughts must use computer technology and network technology. Therefore, timely use and promotion of computer software system based on computer technology and network technology, is on the basis of the cost of the project management. At the same time, the software system of promotion is not only adapt to the new management mode, the opposite is also objectively to supervise and promote the reform for the management of construction enterprise, has the very vital significance, is also one of the key elements of control construction project cost.

Project department should do a good job of seven:

1. To establish a strong sense of management

Project implementation of personnel management consciousness seriously affects the quality of the project management, we should strengthen the cultivation of project department personnel management consciousness, consciousness of project department training mainly include four aspects:

L project manager's determination and confidence.

L establish the cost consciousness.

L work with consciousness.

L cost control consciousness.

2. Clear project cost management objectives

Projects to improve cost management also need to have a clear goal, can only be targeted, targeted only indexes can be controlled, therefore, at the beginning of the project cost management goal set to manage the project cost is very important.

3. To develop practical and feasible construction scheme

Construction plan, including: scheduling, mechanical use plan, the turnover materials used, set in the plan, layout, etc., is one of the largest local cost reduction maneuver, can reflect technical personnel and management personnel is also the most intelligent, bad plan nothing can compensate for the loss is caused by the implementation process, generate cost savings and good implementation process more difficult to achieve, therefore, compiling feasible, save optimization of construction scheme is crucial impact on the project cost.

4. To establish a complete business process and management system

Is to rely on to achieve the goal of cost management of construction process control to complete at ordinary times, and project cost mainly embodied in all sorts of resource consumption, to control all kinds of resources consumed, there should be a standard reasonable business process and appropriate management system strictly, even want to standardize the process standardization, to establish the corresponding restriction mechanism, there is no relative standard business processes, business conduct disorder, is all a matter of individual conscience and ability to management, management of the natural difference is very big, can't guarantee the general management level, therefore, refine and improve business processes and management system is the key to manage the construction project cost factors.

5. To clarify the project department internal cost management relations, implement the cost responsibility division of labor

For project department internal to figure out what costs is by which department, what the position is responsible for the control of the cost management in circle, processes, namely cost problems are caused by what reason, only such ability to translate the cost control into practice, to achieve full, comprehensive cost management.

6. Use information management system

Under the condition of the traditional manual operation, to improve process management and dynamic control is very difficult, only can be realized with the help of a computer management system, therefore, the information system is also the project department completes the necessary means of cost management.

7. Incentives and rewards and punishment policy

Any new management mode of reform or management tool change will cause the user to temporarily not to adapt, even produce resistance, count on raising awareness through training can aware execution may not be realistic practice, form a complete set of incentives and rewards and punishment policy is often effective practice, therefore, form a complete set of incentive mechanism and rewards and punishment policy to control the project cost is also very important.

All in all, under the new competition environment, predict the project cost, monitoring cost process, analyse the reason will be the cost construction enterprise project cost management focus. If enterprise and project can seriously do a good job in the "seven" and on this basis, the accumulation of cost data, and believe that not only the tender offer work lays the foundation for later, at the same time also can better implement the reliable basis for project control, and can promote the improvement of the enterprise management level.

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