Research On Cost Control In Chemical Engineering

Chemical engineering has special features such as great investment, long construction period, many design codes, high quality, and sophisticated techniques, long time on measuring engineering, varied price and time limited. The project proceeded with design and construction. There is a conflict among its schedule, quality, HSE and cost control. The aim of cost control in chemical engineering is, by a set of management, to make a chemical engineering to be the equipment which could produce the right product controlling under the budget, the schedule and design code.The cost is the total fee which is used in the engineering. It is composed of equipment, material, construction and installation engineering and some others. There are 5 stages, that is, feasible research stage, decision making stage, decision stage, stock stage and construction stage. Different stages have different effect on cost control. The sanctified investment budget is the limitation of the engineering cost control. The decision making stage and decision stage have critical effort on the cost control. The key on cost control is feasible research stage and decision stage. The theory is the earned value concept.This paper researches the cost control method on each stage, and analyzes that the cost run through the whole process in the engineering, which is a systems project and tight junction with each stage in the engineering. In a great degree, the cost depends on the control measure in each stage. So it asks for using the theory to solve the problem of Engineering-Procurement-Construction and the interface, little change on design, building and perfect the control project. This paper suggests that we should make the reasonable investment budget, choose the right project management mode and control the cost by limited quota design, limited quota procurement and limited quota construction.