Construction Enterprise Cost Management, The Main Problem

This topic is selected based on main subjects of engineering cost control inconstruction enterprise and how to do bid quotation, price control and claim ofengineering well is discussed in this article.Bid price is accurate or not is one of the main factors for deciding whether theproject can win the bid and the foundation of doing cost control and claim well, aswell as the premise of insuring cost and getting profits. However, lots of enterpriseslack a precise and scientific mechanism of price quotation. According to project'scharacteristics and actual cost control, the article analyzes the advantages and limitsin various judgment on bid price at present, puts forward that the principle of "fourearnest" must be followed in considering quotation, also analyzes the procedure thatthe price decision must follow, give priority to the discussion on the theory and themethod of price decision. Applying game theory, theory of probability and statistics inprice decision is the first creativeness in this article. The cost control is one of the core contents in project management and the keyfor project to insure its cost and get profits. The information accumulation on cost notonly guide cost forecasting when bidding to make quotation and decision makingeasier, but also may be a powerful evidence when claiming for compensation. On thebasis of analyzing the problems in cost control, the article illustrates the necessity ofstrengthening the traditional cost control, presents that the innovation of project costcontrol must step further, that is, the integration of technique and economy should beadhered to in cost control, expenses should be reduced from the very beginning andthe theories and methods of value engineering principle should be applied in costcontrol. This is the second creativeness in the article.Claim is an important channel for construction enterprise to control project cost,increase profits, reduce expenses from the very beginning and increase economicbenefits. The successful claim experience also can guide quotation when bidding andis of great significance to make quotation more competitive. Therefore, on the basisof illustrating property, reason, content and calculation method of claim and how towok out a claim report, etc., the article argues that we should pay great attention thestudy on claim tactics and technique, promote claim to go smoothly by fulfillingcontract, and prevent from the occurrence of the anti-claim at the same time.In the end, the article proves the above conclusions with project examples.