Fast Estimating On The Cost Of International Engineering Project

In order to succeed to cope with domestic engineering contractingmarket shrinking, meet the needs of the business enterprise to keep on adevelopment, and carry out the national “going out” strategy, expandinginternational project contracting is the only way for Chinese contractorsto do bigger and stronger.However, on the "going out" road, in the face of the European andAmerican countries leading the international project contracting market,for insufficient risk awareness and no reasonable prediction on projectcost in the prophase, some enterprises suffer from frequent and hugedeficit, such as CRCPR Mecca Light Rail Project, COVEC Poland A2Highway Project, and Sino-Australian Magnetite Project (Sino-iron). Thelosses incurred often are caused by the inaccurate implementationprediction, insufficient risk assessment, and no rational cost forecast forproject bidding decision-making.In order to find a fast cost estimating method, this paper introducesthe characteristics and difficulties of the international engineeringprojects, as well as to the cost classifications of the internationalengineering project, and then this paper introduces the domestic andinternational project cost estimating method, referring to the overseasproject offer management method of one famous large state-ownedenterprise, introduces in detail the basic quantity machine valuationmethod. Then, the author proposes the programs of the fast estimatingmethod—Improved Quantity Machine Valuation Method, which includes:1) divide the bidding project into several appraisal units;2) choose highsimilar project as the reference project, and calculate the cost of thevaluation unit, and then according to the resource price contrast andadjust the cost of the valuation unit;3) roll into the direct costs of thebidding project.At last, compare and analyze the advantages and disadvantages of three methods the quota valuation method, quantity machine valuationmethod and fast estimating method.Combined with a container terminal project bidding in Colombo SriLanka, this paper actually applies quantity machine valuation method toprepare project cost, and at the same time applies the fast estimatingmethod to check the results.