Empirical Study On Project Cost Control Of Ru Shan Dong Gu 110 KV Substation

In recent years, the power industry system deepens reform continuously, and electricity infrastructure construction unit start self-financing, which leads to an increasingly competitive electricity market. Therefore, Strengthening cost control in substation construction project has become one of the current important works and hot issues for electricity infrastructure construction unit.This paper analyzes cost control current situation, problems and deficiencies in the Ru Shan Dong Gu 110 kV substation construction project, based on the analysis of the theory and methods of cost control on the project at home and abroad. The Ru Shan Dong Gu project cost control decomposition work is not detailed enough, and its cost control processes are time-consuming and need high cost. So this paper conducted detailed substation cost control work packages decomposition and process reengineering based on the theoretical basis of WBS (Work Breakdown Structure) work breakdown and process reengineering. Cost control methods are optimized from three aspects of project spread, direct and indirect costs through organizational measures, economic measures and technical measures. Afterwards, the integrated management index evaluation method is used to evaluate the effect of the new process. The score of the new process is much larger than that of original process, showing the results of original process optimization are remarkable. Optimized cost control process can simplify tasks, reduce the occupation of human resources and establish the appropriate supervision and management mechanism in the construction of Ru Shan Dong Gu 110 kV substation. Meanwhile, it greatly reduces the number of non-value-added work, consumes less time and ensures that the project cost control programs more effective to a great extent. It overcomes the limitations of the original process and creates greater profits for power infrastructure construction unit. It also lays the theoretical foundation for cost control of substation construction projects, and provides practical support.This paper raises 110 kV substation project cost control and process optimization method based on empirical studies, which can provide a better theoretical basis for related research at home and abroad. It can also provide scientific and effective learning for power construction unit to effectively control costs, expecting that China’s power construction has better development.