The Research On Cost Management Of Construction And Installation Engineering In Oilfield Construction System

The construction and installation project of oil field construction system is mainlycompleted by the construction company, the construction company of Jilin oil field is asecondary units, the company has a number of independent enterprise qualifications, whichcan independently bear oil field construction system and the external market (in terms of theinternal oilfield) construction and installation. For construction company, over the past fewyears, due to reducing of internal oilfield production investment and workloads so theconstruction company had to explore external market.Faced with the fierce competition ofexternal market, although our country providing the powers for the construction company,itdoesn’t have the advantages.But what is the main reason?First,due to the legacy of history,equipment aging, personnel idle, and retired majority, basically, a person work to supportthree people, leading to the high fixed cost. Second the company joined the market for ashort of time, information asymmetry, leading to increased cost. In this survival condition,the construction company need to establish and improve a set of suitable system for theirown cost management and this cost management system should be easily to operate,andcan be used to save cost and to get the largest profit space.The construction and installation of oil field construction system have wide distribution,many blocks, large construction system, big quantity, various basic production units,difficult cost management, involving many majors and management departments, difficultcoordination etc.. The cost of construction company management status is concerned. Costmanagement starts from construction company’s basic stand in line basically, then therelevant departments examine, ending up with the construction company finance sectionaccounts, it does not have actual control in links. And there are many problems: one is theconstruction company’s cost management without prior link, in other words,it is the costbudget and cost decision, there is cost plan but it isn’t carried out; The second is the costmanagement of the construction company applied accounting methods in the basicproduction units at present, according to the contract to build the basic production units, andthen collects the cost to the basic production units,.but because of the related businesspersonnel level and the sense of responsibility, the cost has the possibility of inaccuracies,vertual, string the phase. The third is that the cost management has no cost assessment, reward and punishment link, leading to just talk, that is, a cost accounting. Did not havedriven the staff’s work enthusiasm and working efficiency of the action.Therefore, the major task of the construction and installation of oil field constructionsystem is to establish and perfect the cost management system, the purpose is tomanagement cost better, to compress cost, to achieve greater profit space. Cost managementis a dynamic long process, it transfers on the basic of the will of people. The content of thecost management including cost forecast, cost decision, cost plan, cost accounting, costanalysis, and cost assessment, reward and punishment. Key links are in the cost forecast, costaccounting and cost assessment, reward and punishment.Based on the existing in the construction of the company cost management presentsituation, the author starts bold vision, proposes construction engineering cost managementsystem:One is to increase the cost budget links of construction company, that is, based on theactual cost of the previous year and the prediction of this year’s workload, to formulate thecost budget of this year, and according to the degrees of engineering increase and decrease,adjust budget at any time; Set cost budget process, and preparation of cost budget assessmentsystem, formulate the cost budget evaluation rules.The second is in cost accounting, set cost accounting procedures, it introduces the directcosts and indirect costs of construction and installation costs, and use cost accountingmethod of the assignment cost method, according to the function of construction andinstallation, the cost driver is divided into production, gathering, water injection, joint stationfour aspects collecting the cost of fixed cost, taking directly into cost for the fixed cost, notbring forward to the four cost drivers, directly on the controllable cost management.Themain reason of oilfield construction company’s assessment is mainly to the cost of changeassessment;Three is to strengthen cost assessment and reward and punishment system settings, aswe all know: without norms or standards cannot form square and circle, cost assessment is toevaluate the responsibility center, especially the cost center performance, driving theresponsibility center to burden obligation to controlled cost responsibility, and so as tocontrol and reduce production cost. According to the results of the cost evaluation, rewardsand punishments relevant personnel working in the cost management. Using the weightedaverage way, in order to avoid the same score appear.Of course, a set of system establishment is not so easy, is needs a process, it needs constant improvement, continuously perfect. This kind of improving and perfecting willachieve in the implementation process continuously changes. An implementation of thesystem need company organization safeguard, also need the company system safeguard, itcan make cost management system play a real role. At the end of this paper,the author raisedsome suggestions:(a) The cost management system construction should start from the grassroots level.The grassroots level based material is the most basic reflect of any management effects.Iffirst-hand material makes an error, then it will cause the result of certain deviation.(b)To strengthen the cost management system enforcement. Only cost managementsystem is not enough, system is easy to establish, the key point is executing, in order to makesystem become a meaningful letter, decision-making and management must take out toughattitude, can’t palter, excercising accordance with the system implementation.(c) The cost management system need to modify continuously. Due to the constructionand installation project, every day there are engineering in construction, as we all know:experience is the best teacher, only in the time of actual operation can find the problemsexisting in the cost management system, must found the problem timely, then to carry on therevision, don’t wait until year-end summarize work to ask questions and modification, andshould be timely adjust, timely modify,therefore, in the later work the same situation will nolonger appear, let the cost management system better fit for the construction project costmanagement.