Project Cost Calculation Method Research

With the further development of engineering construction market, the traditional quota valuation model is no longer suitable for market economic development need. In order to adapt to the current need that market forms engineering cost in bidding, it has to reform of current valuation methods and engineering budget valuation methods, and implement the valuation in quantities list. Engineering quantity list valuation mode is a valuation mode that is fitting the market-oriented economy, allowing contractor’s independent offer, setting price through market competition, combing with the international conventions. Due to the characteristics of engineering project’s large quantities and long period, and based on the engineering quantity list valuation, the price of materials, labor, machinery should take average price in the whole engineering construction process as standard instead of market price in the beginning of engineering construction. Under the popular using of lowest bidding reasonable principle from the Law on Bidding, most of the construction enterprise can’t predict the project cost and be helpless when facing up the cost changes after construction.Firstly, the divison of quantities is summarized in this paper. The content of project cost is divided into five aspects such as artificial cost, material expense, machinery expense, other expenses of the project, profits and taxes. It avoids repeating and leakage in process of measuring quantities. Secondly, it puts forward that the price of labour, material and machinery is not subject to the price of measure base. The average price of the period of the whole project construction should be as benchmark. This paper will use calculating mode to estimate the price of labour, material and machinery. For example, it will use grey system theory to estimate variable price of material and machinery. It will use second exponential smoothing method to caculate the price of labour. At last, the model of caculating project cost will be constucted. Then this paper uses the prediction madel to analyse an example. Measurement precision is confirmed through error analysis and then the feasibility of measuring method is checked.