Budget Analysis Of Rundu-Elundu International Highway Project

This discourse makes an attempt to expatiate the problems and the reasons thereof in the process of bidding for Rundu - Elundu International Highway Project Phase 2 Section A in Namibia by China railway 13th bureau group co.,ltd.Combining with the related theories of international project budget management,this paper raises the way to solve the problem in budget management and improves the tendering procedure by adopting the idea of global allocation of resources and localized operation and analyzing all the components of budget management.These solutions optimize the deployment of the resources and reduce the construction cost to ensure the smooth operation of this bidding for the Namibia project.And this paper achieves some breakthroughs in the process of bidding,which ensure the integrality and veracity and solves different kind of problems arisen in the budget management.The execution of those solutions assures the correct exertion of model for international project budgeting and achieves a speedy settlement of problems thereof.Finally this paper analyzes how to optimize the resource and reduce the cost reasonably by adopt different sources of materials and correct combination of personnel in order to ensure the smooth operation of this bidding and establish a solid base for the international development.Budgeting is the crux of international project bidding which could make a company more competitive.As to budget management,a lot of scholars have done much research and have brought forward many theories and methods;it is very important even for a specific project.Experts have long been concerned about the importance of budget management,but we still have a long way to go on the solutions of it.Affected by lots of factors,it is very complicated to budget for a highway project as the different situation in varied projects and counties.Therefore,the budgeting needs the detailed investigation and sufficient preparation and understanding of the specific project.The main problem that existed in the budget prepared by China railway 13th bureau group co.,ltd for the Namibia northern highway is as follows:It lacks the detailed investigation of the local economy and natural situation and reasonable risk control method.It also lacks the referable method for budgeting.The cost of personnel and machinery is also overestimated.The management and decision-making system could not come up with the requirement of international project bidding.Namibia lacks the engineering ration to refer and the complete budgeting methods.The budgeting only relies on the experiences of the company and market investigation.So it is necessary to do the detailed investigation of the local economy and natural situation before budgeting.The main reason for the problems lies on the carelessness of the management system and the faultiness of the working procedure.This discourse makes an attempt to expatiate the problems and the reasons thereof in the process of budget management for the highway project through the detailed analysis on the structure and engineering cost. By establishing and consummating the methods of budget management and the bidding procedure and management specifications,combining with the experience of international bidding projects,the paper brings forward the solutions for the key problems in the budget management,optimizes the budget program reasonably and puts forward the specific operating and control measures to strength and consummate the budget management for Rundu-Elundu highway project.This paper optimizes the budgeting by using the theory of Global Allocation of Resources,including reasonable combination of personnel that reduces the labor cost; the equilibrium organization of the construction schedule and labor and machinery that reduces the interest payout of the bank fund;Sound arrangement of the working procedure that decreases the input and transportation cost for the machinery; improvement of budget system and program to reduce the management charge.Finally,to confirm the strategy for final bidding price for the project according to the current projects and the prospect of the project foreground.