Construction Of Target Cost Management Modefor Large And Medium-Size Photovoltaic(PV)Power Station During Design Phase

As a sustainable energy alternative, photovoltaic(PV) power has positive attentions around the world. Many countries have set long term strategic planning for the PV industry. Cost management is an important management activity during the construction of a project. According to statistics, cost management activities play different roles at different stages of a project, and after making investment decisions, the key for an effective control of a project cost lies in the design stage. Such a complex construction project as medium to large size PV power station have features that includes large investment, high technical requirements, integrated multi-disciplinary, therefore, conducting research on cost management activities for medium to large size PV power station during project design phase are very important. The success of the cost management during design phase not only results in successful total investment of a project, but also will result in successful achievement of the project objectives.This paper, based on the author’s working experience, case studies of medium to large size PV power station projects, and results from other researchers, put together a comprehensive introduction of the current status of the cost management of the medium to large size PV power station during design phase. The author further analyzed factors that may affect the cost management, such as the features of the project, the technical aspects, aspects of management, resource prices and other factors of uncertainty, and found that overwork of the design, improper selection of equipment and materials, as well as a huge waste of human and financial resources and other issues normally exist in design phase. This paper also researched and analyzed the awareness of the cost management and the causes that results in the formation of the management, and found that there is urgent need to find an effective cost management for the medium to large size PV power station project during design phase.Then, based on target cost management theory and methods and design phase cost management, proceeding from three main components:the setting the target cost, target cost breakdown and the cost of reaching the target, reasonably applying theory and methods such as the use of typical design, value theories and methods engineering, design limits, quota calculation method, etc., this paper established how to achieve all sectors of the target cost management objectives. Through analysis of the design stage, the main content of the preliminary design work and construction stages of the design phase, by effectively combining design contents and cost management activities, a cost management model during design phase was established for medium to large size PV power station. Additionally, based on this mode design and through scientific research process, a target cost management model during design phase was built.Finally, this paper proposed safeguard methods to ensure the effective functioning of the target cost management mode. The proposed safeguard methods are based on both internal and external perspectives. Internally, the perspective is to improve the operational efficiency of matrix organization structure, to strengthen the responsible cost system construction and to standardize design changes angle and other design process. Externally, the perspective is to strengthen the owners’ leading role, and to improve the collaboration with suppliers, and to enhance the professional construction. This paper also took the Linyi City of Shandong Pingyi County stream valley town 30MW PV power station project as an example to introduce how the target cost management was practically applied, and to further analyze the results. Through scientific research, a target cost management model was built to improve the cost management of domestic medium to large size PV power station project.