Power Plant Project Investment Control And Cost Management

Power station project is one of the essential construction projects related to national economy and people's lives. In the past, all projects including power stations were under strict plans by the central government. Budgets, construction periods and profits were all preset by the government. Individuals or companies involved in a specific project had no responsibilities for investment returns. In practice, the actual investments often exceeded the budgets preliminarily designed which induced a common practice that constructor didn't need to be in charge of investment control. Being under the Planned Economy in China for a long time, the mismanagement occurs obviously: investors neglect the control over their investments; construction companies overlook the management of project costs; civil companies disdain the improvement of themselves and their employees. Things have been changed painfully with the national reform in investment-system and enterprise-system. Investment sources changed from central revenue only to commercial loans and other financial resources. Projects approval system changed from central government arrangements to market-guided evaluation system. Thus, it becomes clear that investors profit from their investments. Therefore, investment-control has become the core of the management system in construction companies. These companies treasure so much on how to reduce project costs. With the introduction of bidding system and competition system, the involved companies started to study the cost-control theories and methods which became very essential to the survival and development of them. So, it is very necessary to look into the details of investment-control and cost-control.This essay mainly covers two independent accepts: investment control and cost control. In investment control, the essay analyzes theories and methods of investment control from the views of constructors. It also reveals two key steps of investment control and emphasizes the relationship among investment, construction period and quality.In cost control, the essay explores the classification and structures of the project costs from the view of contractors with detailed explanations of cost estimate, cost-planning and fulfillment, cost-control, auditing and cost analyzing. It expounds the quality-cost control which is often neglected by construction companies and explores the ways of minimize costs from theories. Meanwhile, it discusses the common phenomenon of projects with constructor's capitals and give personal suggestions and solutions. As an employee in the company related to power station projects, I'd like to pay more attention to these projects regarding to the investment and cost controls. This essay also argues the influences on investment control by the shortcomings of the ongoing systems which include the bidding system, project legal person system and project supervision system.