Establishment Of Contract Management & Control System For Power Construction Engineering Management Company

This thesis uses internal control theory in combination with detail situations of the enterprise to design a complete system framework for contract management and control, which provides working system (standard) and operation procedures for contract management and control of the enterprises. It also formulates a corresponding system for regular examination (re-examination) on the enterprises, inspection on execution of contract management and control system, and on performance and completeness of contract management and control system itself in consideration of problems found in contract management and control system during operation of the recombined power construction engineering management companies after state power system reform. The research conclusion of this thesis provides theoretical basis and implementation scheme for contract management and control system of power construction engineering management companies, enabling development of internal control theory to be very much extended in the new fields. This thesis is divided into the following five parts: Part I. General introduction to power construction engineering management companies I. Mission of power construction engineering management companies. A power construction engineering management company refers to a non-productive enterprise recombined after state power system reform. Through a process of tender, it signs a project contract separately with survey and design institute, engineering contractor, material supplier, equipment manufacturer, consultant, supervisor or any other units awarded. It completes entire construction project through such contract controls as tender/bid control, contract implementation control, contract alteration control, and damage claim control. II. Role of contract for power construction projects and significance of contract management Contract for power construction projects is a legal document to establish relationship on rights and obligations of parties concerned. However, control and implementation of a contract must be completed through contract management, which will be closely involved during the entire process of project construction. Role of contract management is to promote company image, monitor operating risk, create economic profit, and improve management level. Contract management is the core of all management works. III. Present situations and malpractice on contract management of power construction engineering management companies Imperfect control system for contract management affects construction of power projects, and causes bad social impact and political influence. Part II. General introduction to internal control theory of enterprise I. Concept of internal control Internal control is a general name referring to a series of methods, organizations and systems, under which the responsibility subject restricts and standardizes actions of its subsidiary units and persons in order to implement its guiding policy and targets of business operation, and maintains and utilizes its own funds and assets. Internal control system means the normalization, systemization and standardization of internal control system.II. Internal control functions of enterprise(I) Purpose of internal control: To realize the business operation goal, improve working efficiency, and prevent and minimize malpractice risks. (II) Internal control functions of enterprise Internal control functions of enterprise mainly refer to: To assure correctness and reliability of enterprise's economic information, protect enterprise's property safety and completeness, promote enterprise's efficiency in production and operating activities, guarantee implementation of state policies, laws and regulations, and reinforce the effectiveness of state's macro regulation over enterprises. III. Main elements of internal control Main elements for internal control mainly includes: Environment control, risk evaluation, control activities, information and communication, monitoring, and regular or irreg...