Project Cost Management Research Of Gas Pipeline Renovation Of Changchun Gas Company

With the development of economy, the gas industry grows rapidly in China. Atthe same time, the natural gas is high, which is a universally recognized. However,the vigorous development in the gas industry is companied with accidents. That is tosay, accidents of gas should not be overlooked. Gas leak explosion accidents, whichexplode frequently, have brought great harm to the property and life safety ofresidents. Based on the statistical data, gas accidents are mainly caused by the gaspipeline aging and third-party construction. So the government has increased theintensity of gas network renovation. Tianjin, Shenyang, Jiaozuo and other cities havebegan the renovation project of gas pipeline, and have made great achievements. CCGAS began the renovation project of high-risk gas pipeline from2004. This time thenew project launched by CC GAS will last four years and need much investment.In the process of renovation of Changchun gas pipeline, it involves a widerange, a large investment and a long period, so the project management is necessary.Among many aspects of project management, the project cost management affectsthe final cost-benefit, and it ensures the accomplishment of the final goal of therenovation project.In this paper, we deeply analysis the project cost management of Changchun’gas pipeline renovation project. Firstly, We estimate the usage of the gas pipeline inChina and Changchun City. By analyzing those accidents, we found that there aretwo factors mainly leading to the leak explode. One is that lots of gas pipeline inChangchun has a long history; the other is that the construction of the buildings andcables. In order to ensure the health and safety of Changchun residents, pipelinerenovation is necessary. Then we analyze the feasibility of the implementation of the renovation project, from the perspective of policy, economy, technology,organization and human resources. Meanwhile, we analyze the problems in the costof pipeline renovation: high cost and difficult to control. After that, based on therelevant theory of project cost management, the cost management plans ofChangchun gas pipeline renovation project are designed. The goal of this project costmanagement is to control the cost of this project in the budget through a variety ofcost management methods, and to maximize the cost-benefit of this renovationproject. However, as the project is limited by the scope and time, it is difficult toachieve to reduce and control the cost. So the first step is to make the costmanagement program of Changchun gas pipeline renovation project, in order tomake the process and steps of the project clear. Next is to estimate the gas pipelinerenovation project. The estimation and the detailed budget of this project are veryimportant reference for the cost control. The last step is to control the cost of theproject by using the target cost management and the whole process of cost control.CC GAS should also establish the corresponding safeguard measures to assistin the implementation of the renovation project cost management plan. Firstly,construct the cost management organization to ensure the successful completion ofthe gas pipeline renovation project. Secondly, establish cost management process. Itmeans that every step in the renovation project has a standard to depend on. And itmakes the process not only suitable for this project, but also a reference for thefuture ones. Thirdly, improve the information system of cost control. Introducingcomputer systems to project cost management can ensure the accuracy of the projectcost data and improve the efficiency of cost accounting, cost analysis and costevaluation.