Research On Cost Risk Control Of Overseas Engineering Projects

Driven by the national strategy of “Going Out”,especially the “One Belt,One Road Initiative”,China’s construction enterprises are going overseas on a large scale and participating in the infrastructure construction of countries over the world.With the increasing number of foreign contracted projects,the cost management of Chinese enterprises are becoming internationalized and refined.Meanwhile,the increasingly fierce competition in overseas markets and the increasingly complicated international situation have also forced these companies to develop much stricter requirements of cost management.This paper investigates the development of overseas markets that the Chinese construction companies enter,and points out the great significance of project cost risk control to overseas projects.Based on the literature research on project cost management,risk management,cost risk management and control,combined with the analysis of the current cost and risk management status of enterprises,this paper analyzes the problems in the cost risk management and control of engineering projects and the root causes of the problems.Combined with the existing engineering projects,the total cost of the engineering project is estimated by using traditional methods,and the cost risk is qualitatively assessed through the CIM risk management and control model and risk assessment method.Here introduces the cost risk coefficient and Monte Carlo theory,and bases the assumption that the impact of each single risk on cost is the equal.The impact value of the risk cost coefficient on the upper and lower limits of the total project cost budget is calculated and the Monte Carlo theory Crystal Ball application plug-in is used to simulate the risk quantification data,which realizes the analysis of the impact of the project cost risk on the overseas project cost.According to the analysis results of the software on the estimated value and sensitivity,active and effective risk pre-control measures are developed prior to the construction of the project.Therefore,the preliminary combination of Monte Carlo theory + CIM model and project cost risk control is achieved,which reflects the necessity and practicability of quantitative analysis of project cost risk management and control.