The Analysis Of Government-Invested Project On Cost Management

The cost management of government-invested project is an important part of the management, which controls the construction project cost within the approved limit and corrects the possible deviations at any time during the investment decision-making stage, design stage, bidding stage and the actual construction stage so as to obtain good investment benefit and social benefit by using human resources, materials and financial resources reasonably. In the management of the government-invested project, how to cut the construction cost with ensured quality is a problem that project cost management departments at all levels and the investors should concern.The author has been engaged in professional engineering cost management for nearly10years. In the working practice, the author discovered some problems such as the defects in policies of the cost management system and nonchalance of the investors toward engineering cost management. This paper studies government investment in the project cost management based on the project cost management theory and analyzes government investment project cost control process. Given that uncontrollable government investment in the domestic construction projects is relatively common in investment and domestic engineering, and that there is a separation between technology and economy, this paper expounds the history and current status of domestic and international construction cost management combined with practical problems in project cost management and accordingly it offers effective ways and methods of cost control. In addition, this paper summarizes and analyzes project examples and points out problems with respect to government-funded projects in the absence of cost management to be controlled and corrected.This paper consists of four parts as follows:The first part introduces the background, purpose, meaning, the contents and methods of research.The second part gives an overview of the status and the development of government-invested project cost management, explains the concepts in terms of the domestic and foreign government-invested projects and analyzes project cost management and the development process.The third part is the key part of this paper. Through many years of work experience and consult to a lot of relevant literatures, the author analyzes several important cost management issues and the main reasons for existing problems in the government investment projects by case study.The fourth part is the last chapter of the paper, offering some improved methods and countermeasures, and a detailed explanation about various stages of construction projects.After nearly two months of writing, the author thoroughly combined his work of project cost management and put forward proposals for defects in government investment from the viewpoint of a practitioner working in project cost management in the hope that the government-funded project cost management can be attached more importance in order to save investments and maximize investment returns.Shortcomings of this paper:Firstly, the author only analyzes from the perspective of a project cost management consultancy, thus the views and opinions are inevitably one-sided and biased. Secondly, the author’s knowledge of government-invested project cost management system certainly has limitations, which needs to be tested, updated and enriched.