Government Investment Project Cost Management

With economic growth and improvement in people's quality of life in our country, the government is making more and more investment on infrastructure like roads, bridges, large sport stadium and airports. As the government is getting more and more involved in infrastructure construction the issues of how to maximize the regulation role of fiscal funds and economic benefits and how to improve project costing management for public investment projects need to be addressed.This article focuses on the whole process costing control for public investment projects, systematically analyzing the characteristics and model of costing management for public projects from decision-making, design preparation, implementation until final costing and presenting the costing management theory and control medology at different stages of large projects by taking the contruction of Shenyang Olympic Center Main Stadium as a case study. Recommendations on costing management for large public projects are proposed.By using international best practices as a reference, recommendations and effective measures on the management model and key stages, including decision-making, design preparation, implementation, final costing and fund management, are proposed on the basis of Shenyang Olympic Center Main Stadium. The recommendations proposed include: (ⅰ) improve the management model for public investment projects, in particular costing management; (ⅱ) make reasonable and accurate cost estimates to provide a good basis for decision-making and preparation of preliminary design; (ⅲ) cost limitation should be applied in the design process, select and optimize the design proposal for public investment by using value engineering methodology; (ⅳ) promote the pricing model of bill of quantities, improve procurement system and strengthen the govermental supervision on contracts; (ⅴ) strengthen training for institutions reponsible for final project cost review to improve the capability of the reviewers; (ⅵ) take relevant measures to control financial fund used for public projects during the project preparation, project implementation and post review. Good cost estimate preparation, proper supervision, careful control and post review will avoid national assets wastes through effectively control on project costing.