Study On Problems And Countermeasures Of Construction Cost Management Of CDB High Sulfur Natural Gas Project

With the rapid development of China’s economy, China’s demand for energy, especially for natural gas energyis increasing. CDB Project (CDB High Sour Gas Project) was formally established in2002, the main facilities of this project are3train gas treatment devices, each train’s treatment capacity is2million m3per day. Once these main facilities are putting into service,6million m3natural gas will be treated per day and the amount of gas production of SWOG(Southwest Oil and Gas Field Company),which belong to the CNPC(China National Petroleum Corporation), will reach to3hundred million per year.CDB Project is running by4groups of people, the design group, the construction group, the operation management group and the operation group. During the design stage, the design group will lead the work, the operation management group will be in charge and other groups will cooperate; During the construction stage, the construction group will lead the work, the operation management group will be in charge and other groups will assist. During the operation stage, the design and the construction group will be out of the project while the operation group will work on site and the operation management group will take supervision as the same. So far, the project construction works are almost complete, but the cost of the project has gone far beyond the expectation, the reasons are various.First, this paper studies the components and influencing factors of CDB Project construction cost based on the project cost management theory. Next, it studies the current situation of cost management and analyzes the reason that cause the cost overrun through a series of data and theories, then we found six reasons which cause the cost overrun-lack of the supervision mechanism of cost management, the cost management organization is weak, lack of the cost management tools which suppose to exist, the sense of responsibility is thin, lack of the overall control of cost, the management of manpower and communication cost is weak. Then this paper studies why these reasons exist and what influences they bring to the project. At last, based on these six reasons, we put forward six targeted and practical measures to improve the cost management according to the project cost management theory.This paper hopes to improve the current situation of CDB Project cost management and help CDB project to get rid of the cost management strait through the study of problems that CDB High Sour Gas Project cost management exist, at the same time, provide some ideas and methods for similar projects in China in the future.