Discussion On The Whole Process Cost Management Of Infrastructure Project Of JX Electric Power Supply Company

Infrastructure projects is one of the most important elements to ensure the steady economic development,so it is necessary to make a specific cost management and control research on it.Nowadays,the research on it mainly focus on budget control,risk control and cost management at home and abroad,and there are not many researches on the whole process cost management of infrastructure projects.In this paper,we choose JX Electricity Power Supply Company as an example to analyze the problems and measures in its cost management of infrastructure projects based on the specific cases,data of this company.Why do we choose JX Electricity Power Supply Company as the object of the research? This is because,firstly,the power grid company has invested a lot in the infrastructure,and if we find a way to improve the process,it would be a huge influence on this company.Secondly,the whole construction process of JX Electricity Power Supply Company is easy to be divided by construction node,so it is easy to embody the whole process of cost management in this paper.Finally,JX Electricity Power Supply company has gradually applied the idea of whole-process cost management of infrastructure projects in recent years,which makes us more convenient to find problems,study problems and solve problems.Now I will give a brief description of the content of this paper.Firstly,this paper reviews the infrastructure projects cost management theory around the world,and briefly introduces the current theoretical research on cost management of infrastructure projects.Then,aiming at the deepening of the whole process of cost management theory of infrastructure projects,we combines theory and practice by investigating the current situation,and found that there is still a lack of management and control in the whole process of cost management of infrastructure projects.For example,JX Electricity Power Supply Company didn’t use the investment capacity measurement properly in the investment planning stage of infrastructure projects,they would always execute the annual investment passively according to the planning department without offering effective financial opinion.In the stage of infrastructure projects feasibility study,this company didn’t have an universal application of economic and compliance evaluation,and it lacks the analysis and calculation of the economical efficiency,feasibility and cost of the input and output of infrastructure projects.In the completion of the infrastructure projects,the clients in the JX Electricity Power Supply Company didn’t participate in site acceptance,asset counting and physical handover,so the authenticity and accuracy of the assets cannot beverified,and the asset card formed by projects capital transformation can’t be confirmed to the corresponding asset.In the final accounting stage of infrastructure projects,there is no audit and supervision of the project settlement in the early stage,and after the project settlement and approval,there are also material omission and misstatement,and the project book number exceeds the settlement and approval amount,which causes problems to the accuracy of the final account of the projects.In the post-project evaluation stage,they didn’t carry out the post-project evaluation thoroughly,which makes them hard to offer proper opinion to the following projects investment by knowing the following development of project construction and the actual asset benefits.So why did this happen in JX Electricity Power Supply Company? By analyzing the reasons,we could find that,firstly,the financial management concept awareness of this company is not strong enough in the infrastructure projects management,and all of the construction management stays on cost management,which means the effect of management decision is not enough.Secondly,the cooperation between the financial and business department remains some problems,which causes information asymmetry,some parts of the construction process being forgotten,and finally lead to the lack of the management of the whole infrastructure projects process.Thirdly,the lack of similar projects standards makes it hard to make a comparison,analysis and judgement to the economical efficiency,feasibility and reasonable expenditure of JX Electricity Power Supply Company.The caliber of the final account of completion of the projects is consistent with that of the production management,and the financial manager is not familiar with the physical assets,which makes the asset card formed by projects capital transformation can’t be confirmed to the corresponding asset.In the part of infrastructure projects management appliance,there are many information manage system in this company,but the function of the software is not good enough,the cost statistics of a single project need to be counted by hands,which would make some mistakes or omission.Finally,the assessment index system of the JX Electricity Power Supply Company mainly stays on the final account stage,but lack the constraints of the front parts,in other word,they mainly focus on the completion of the final account,which makes it hard to push and complete the front parts.This paper analyzed the current situation and main problems of the JX Electricity Power Supply Company,then put forward the improvement measurement from four directions.For example: the financial manager should fully participate in theeconomical efficiency and feasibility assessment,and take part in the scientific estimate research,and do the scientific investment capacity measurement,which is the advanced control of the infrastructure projects management.Then,they should strength the cost budget online control,and specify the standards for other expenses of infrastructure projects,strength the auditing the capital expenditure,and prevent the risk of excessive payment of funds and unreasonable expenditure.And we also need to supervise the financial personnel to participate in the acceptance and physical assets check of the final account of infrastructure construction,and optimize the process of system transformation,get to know the construction situation of physical assets,which could offer an assurance to accuracy and timeliness of the capital-transformation.Finally,they should increase the financial personnel’s participation of completion settlement audit,unified final accounts report compilation standards,conduct post-projects evaluation thoroughly,which could offer quality assurance for the projects investment,and offer comparison basis for the following investment,and then do a good job in the closed-loop cost management of the entire process of infrastructure projects.