Cost Control Of FIDIC Contract Mode In The Subway Project

With the continuous development of the global economy, the number of foreign construction engineering construction companies in China which are joining the ranks of foreign construction market competition is gradually increasing. So studying and using the large international contract format is imminent. As the customary international contract, FIDIC clause is called as the "bible" of the construction, which has made accurately defines and strict regulations for related specific issues,such as the engineering technology, economics, management and laws.FIDIC clause plays a key role to reduce the construction cost, at the same time, the engineering quality has been improved and the construction schedule has been speed up.And in our country, with the rapid development of economic construction, the process of urbanization has been promoting increasingly. As the main mean to solve the problems of traffic congestion in large and medium-sized cities, rail transportation also has an unprecedented rapid development. Subway, which is a general form of the rail transit, has been widely used in large and medium cities in our country. However, because of the huge investment of the subway project, reducing the construction cost of subway project seems to be particularly important. Since the cost control of subway engineering concentrated mostly in the early decision-making and design stage for our country, there is little research about the application of FIDIC contract cost management theory for subway construction cost control.Based on related documents, we use FIDIC contract cost management theory as the main object in this paper, and then FIDIC contract clauses and the subway project contract cost management theory have been analyzed and compared. Combined with the specific project case, we analyzed the problems of the cost control method of subway projects in our country, and put forward the corresponding solutions.First of all, the FIDIC contract terms has been elaborated in detail, including the development of FIDIC conditions of contract, and the characteristics and terms constitution of the new version of “conditions of contract for construction”, and the application status of FIDIC contract conditions in the domestic and foreign engineering project for comparative analysis. Secondly, the FIDIC contract cost control theory has been studied, including the construction cost composition, the control of the engineering cost, and we analyze the all elements cost management from the decision-making phase, design phase, bidding and bidding stage and construction stage. The conditions of contract for construction and cost management theory, which has been used in the subway project in our country at the present time, is discussed in detail and then we analyze and compare the differences between FIDIC construction cost management theory and China’s domestic subway project contract cost management theory, from the control of project quality, project schedule control, engineering cost control and safety of engineering and environmental control.Finally, combined with specific examples of projects, we discuss the actual project cost control measures and methods of the subway project about engineering quality, time limit for a project, cost and safety and environment, and some existing problems and relevant solutions have been raised for the cost control of metro project in our country.