How to carry out project cost management

1. Problems in the project cost management process Through the investigation and analysis of the current construction market, there are mainly the following problems in project cost management: 1. There is no complete set of responsibilities and rights. A combined cost management system Any management activity must establish a management system that combines responsibilities and rights to achieve results, and cost management is no exception. In the cost management system, the project manager enjoys supreme power and is responsible for the leaders of the construction company in terms of cost management and project benefits. Other business department heads and managers of each department should have corresponding responsibilities, powers and benefit distribution and a matching management system. constraints and incentives. However, the current project cost management system does not combine responsibilities, rights and benefits well. Some project departments simply attribute the responsibility for project cost management to the cost management supervisor, without forming a complete cost management system. 2. Ignore the management and control of "quality cost" of engineering projects. "Quality cost" refers to all necessary expenses incurred to ensure and improve project quality, as well as economic losses suffered due to failure to meet quality standards. "Quality costs" are divided into four categories: internal failure costs (such as costs caused by rework, shutdown, etc.), external failure costs (such as costs caused by warranty, claims, etc.), quality prevention costs, and quality inspection costs. Ensuring quality often leads to changes in costs, but quality and cost cannot therefore be opposed. For a long time, my country's construction enterprises have failed to fully understand the dialectical and unified relationship between quality and cost. They have been accustomed to emphasizing project quality and not paying enough attention to project cost. As a result, although project quality has been greatly improved, it has increased the number of steps required to improve project quality. The cost of quality paid has resulted in unsatisfactory economic benefits and insufficient corporate capital accumulation; the project department has been unilaterally pursuing economic benefits while ignoring quality. Although the profit index may be high for a single project, because the quality does not improve, it may It will increase the additional quality costs due to failure to meet quality standards, which not only increases costs, but also has a very bad impact on corporate reputation. 3. Ignore the management and control of the “period cost” of engineering projects. “Period cost” refers to all expenses incurred by taking corresponding measures to achieve the construction period target or the contract period. The construction period target is one of the three main goals of engineering project management. Whether a construction company can achieve the contract period is an important condition for gaining credibility. Each engineering project has its specific construction period requirements, and ensuring the construction period often causes changes in costs. Construction companies in my country often don’t pay enough attention to the construction period and cost. Although the project department has clear requirements for the construction period, it rarely conducts in-depth research on the relationship between the construction period and the cost. Sometimes it blindly rushes to meet the construction period and progress, resulting in an additional increase in project costs. . 4. Project managers do not have a strong economic concept. Project manager alliance, project management issues. At present, our country’s project department? 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Cost Management System Project Manager Alliance, Project Management Issues. Establish a cost management system with the project manager as the core. The job responsibilities and scope of each department and person in the cost management system must be clearly defined and given corresponding rights to fully and effectively perform their duties; under the control of responsibilities After completing the work tasks, certain material rewards need to be used to stimulate, completely breaking the past pattern of doing good and bad things, doing more and doing less.

For example, "saving is glorious, waste is shameful", "building famous brand projects and creating the best benefits", etc., enable every employee to give top priority to project cost management. The second is to organize training and improve the quality of professionals, which is the guarantee for achieving cost targets. 5. Improve cost management methods. Each project has its own characteristics. Targeted project cost management methods should be formulated based on the characteristics of the project itself, such as project quality cost management methods, construction period cost management methods, and bidding management. Methods, contract review management methods, material use control methods and other management measures. These management methods should be responsibilities, practical and highly operational, so that the cost control of the project can be based on laws, rules and regulations, and documented. 6. Improve the contract text to avoid legal losses. Various economic activities in construction projects are in the form of contracts or agreements. If the contract terms are not strict, it is easy for the other party to take advantage of the loopholes, causing the claim clauses that should be established when you suffer losses. , resulting in unnecessary losses. Therefore, strict contract terms must be drawn up carefully and carefully. Arrange full-time economic contract management personnel to take up their posts, strengthen the work responsibility of economic contract management personnel, and formulate corresponding fixed standard contract formats. Project Managers Alliance article for an in-depth discussion. Conclusion: To strengthen cost management, the project cost should be included in the main management objectives of the project, and the focus of cost reduction should be on the process management of project construction. Cost control should be carried out while ensuring construction safety, product quality and construction progress. Only in this way can we truly do a good job in cost management.