Study On The Countermeasures Of Construction Corporations On Condition Of BOQ Cost Estimation

According to Announcement 119 of Ministry of Construction, "architecture engineering criterion of BOQ Pricing Mode" was issued and brought into execution as national standard since July1st,2003. Execution of BOQ Pricing Mode was only the change of engineering cost estimation mode on the surface, But as an important act of the reform of engineering cost administrative mechanism, BOQ Pricing Mode indicated that our country firstly introduced market competition mechanism into construction engineering management and wholesale market, for its basic characters of quantity and price separation, forming rate from market, and successful bidder by low prices in economic appraisal. Because BOQ Pricing Mode permitted construction corporations to quote prices independently on the basis of construction organizing design and enterprise quota, price competition would become even severer, and consequently the price would be more transparent, and the profit space of construction corporations would be decreased. For many construction corporations which profits were very small, especially for some middle and small-sized corporations, it is may be an austere test.Based on the history of engineering price management together with the situation of BOQ Pricing Mode implementation and in view of the problems that have occurred in construction corporations' system, project management and risk prevention, this article analyzes the requirement of engineering cost management reform imposed on construction corporations from the layers of macro control and micro-control; beginning with construction corporations' systematic reform, transition of ideas, talent training, bidding decisions, cost management and risk prevention, the article also gives an analysis and exploration to the countermeasures that construction corporations should take in their management under on BOQ Pricing Mode condition.This article, from mentality, feasibility and specific operation processes, gives detailed elaboration on the application of value engineering elements in bidding decision-making,the use of earned value concept in cost management,risks that may occur on BOQ Pricing Mode conditions and corresponding countermeasures.Some materials and feasible advices and measures were put forward according to analysis of some specific cases.