Study On The Consulting Engineer's Management On Cost Variation Of Construction Contract

As soon as the engineering construction contract is assigned, the contract price reflects the exchange price of the construction project on the conditions that the contract describes. The variation of the contract cost is related to the economic interests of both parties of the contract, and the consulting engineer's scientific management on cost variation of the construction contract is of great importance. On the demand of meeting international conventions, and on the basis of many years experience on international projects management, this paper brought forward the theory and method for consulting engineers to manage on cost variation of the construction contract. By integrating with the FIDIC conditions of contract recommended by the World Bank on its loan projects, and other popularly practiced engineering project contract conditions, this paper investigated and analyzed the contract authorization of consulting engineers (engineer's contract authorization) during engineering construction, foundation of the project contract cost, and cost variation risk of the project contract, and presented a cost analysis technique named "BUT-FOR", demonstrated and made comparison analysis on this technique. During the execution of engineering projects, contract cost variation generally concludes various engineering variation and duration variation, and the cost variation resulted from non-engineering factors, such as later legislation and failure to give possession of the employer, etc. Driven by respective interests of each party, the variation could not be solved properly and timely, therefore disputes were raised and variables to both parties' interest "expectation". And finally the engineering project would suffer with great cost variation amounts. This paper demonstrated and analyzed in detail the cost variation problems resulted from engineering variation, duration variation, and other variation, and put forward particular methods for consulting engineers to manage on these cost variations,and demonstrated with practical cases.