Construction Project Cost Control under the Mode of Bill Pricing
Abstract: This paper describes the construction enterprise engineering bill pricing mode in the tender and contract stage of signing,the characteristics of the construction process and the various stages of the completion of settlement,and proposes the new pricing mode control methods and measures of the cost of the various stages of construction enterprises cost control ways and means.
Keywords: The Bill of Quantities Pricing Model；Cost Control；Construction Enterprises
- Introduction
Due to the development needs of the construction industry, the bill pricing has been implemented since 2003. For construction enterprises, the pricing mode of bill of quantities is still in the exploratory stage, and there are still many problems.How to change from the traditional pricing model and make bid and offer according to market price and onersquo;s own strength, how to enhance the competitiveness of enterprises in bidding through information collection, scientific management, application of new technologies and methods, and how to control manufacturing by means of engineering change, engineering claim, engineering price adjustment and engineering settlement under the bill of quantities mode, so that the enterprise can obtain the maximum profit, it is a problem faced by construction enterprises under the mode of valuation with Bill of quantities.
2. Overview of project cost control
The cost control of construction enterprises runs through the whole construction process, including bidding quotation, making project cost plan on the basis of contract price after winning the bid, cost target decomposition, monitoring the target and implementing reasonable claim. The main measures are to reduce the enterprises management costs and resource consumption in the construction process, and to transfer risks to subcontractors. Therefore, the cost management of construction enterprises runs through the whole life cycle of construction projects. To strengthen the cost control of construction project, we should control the cost from three stages of project bidding, construction and completion settlement.
3. Methods and measures of construction project cost control
3.1 Cost control in bidding stage
The bidding is carried out in the form of bill of quantities, and the comprehensive scoring method is adopted in the bid evaluation. The objectives of project cost control are: to achieve reasonable and strict contract price; In the market competition, enterprises not only rely on the quality and strength of enterprises, but also bidding skills play an important role in winning the bid and making more profits. After receiving the bidding documents, the enterprise organizes technical and cost personnel with strong professional and technical ability to seriously study the bidding documents and construction drawings, review the bill of quantities, prepare reasonable construction organization design, material inquiry, and calculate the project price. In the signing of the contract, the responsibility of both parties should be clarified for the corresponding terms involving the project price, and the risk should be quantified as far as possible. Clear claim procedures, claim payment, dispute resolution, etc. provide a strong guarantee for claims, visa, timely and reasonable implementation of project settlement price.
3.2 Cost control in construction stage
The project cost of the bid winning project quoted in the bill of quantities has been basically determined, and can be adjusted only when there is a design change or quantity change or project claim. Therefore, in addition to the above situation, the cost control work in the construction stage is the management of cost elements, which is to control the labor cost, material cost, machinery cost and other costs under the premise of the established income.
3.2.1 Cost management
The project department establishes a cost control system to form an effective supervision and management mechanism for the expenditure of cost. Under the quotation of the bill of quantities, it is necessary to eliminate the labor expenses outside the bill of quantities, and the number of settlement workers must be controlled within the index. As the key point of cost management, material cost should pay attention to the change of market price at any time, strictly manage the material, and control the cost within the scope of planned cost.
3.2.2 Change and visa fee management
For the visa and change involving the change price, detailed records shall be made in a timely and perfect manner and reported in a timely manner, so as to avoid omission and losing the right to claim this part of the project price due to the untimely visa.
3.2.3 Management of project claim
Construction claim is an important part of cost control. It is the most important to improve the awareness of claim and find the opportunity of claim in time. In case of project shutdown and economic loss caused by delayed delivery due to design change drawings, detailed reasons and sufficient basis for claim, correct and reasonable calculation results, practical and effective proof materials shall be provided in time and reported in time.
3.2.4 Management of project settlement price
According to the actual amount of work completed in each stage, as the basis of project payment, the focus of the work is to calculate the actual amount of work completed timely and accurately, and ensure the timely implementation of the project progress payment, so as to avoid the economic loss caused by the interest paid by the advance project payment.
3.3 Cost control in completion stage
The focus of this stage is to carefully organize the completion acceptance and timely handle the completio
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