Analysis of engineering project cost control process?

The following is Zhongda Consulting to bring you about the cost control process of engineering projects for reference.

The cost management activities of construction enterprises is a whole process, full management work, the core of which is the cost control of engineering projects. Project cost control refers to all aspects of the construction enterprise, especially the project manager department, to take economic, technical and organizational means to minimize the physical and chemical consumption and live labor consumption to reduce the cost of the project and improve economic efficiency. According to the requirements and characteristics of project cost control, the content and process of project cost control are as follows:

I. Determine the project's target (responsibility) cost

Construction enterprises contracted projects, generally set up a project department. By the project manager and his superiors signed a letter of responsibility, clear their own responsibilities in the construction process, while determining the target (responsibility) cost.

Two, the preparation of the project internal control cost plan

According to the target (responsibility) cost, first of all, according to the construction drawings to calculate the actual amount of work, by the project manager and other project team managers in accordance with the construction program and subcontracting, to determine the planned expenditure of the labor cost, the actual need for the mechanical cost; secondly, according to the quota of the consumption of materials, to determine the cost of materials, there should be a general reduction of 35% rate ; according to the project responsibility contract to determine the project site funding. The above cost is a combination of the preliminary determination of the project internal control cost plan. Calculated internal control costs, must ensure the completion of the project responsibility cost reduction rate. If the requirements of the reduction rate are not met, it should be solved by accelerating the tool turnover, shortening the construction period, and adopting new technologies and techniques. Through the method of value engineering, under the premise of guaranteeing quality and safety, compare the conditions of different durations with the fixed cost of the project, and solve the harmony between cost and duration. The development of project internal control costs must be accompanied by clear and specific cost reduction measures.

Three, the implementation of responsibility, the implementation of the process of project cost control

Cost control should be done to achieve full participation, to establish full economic awareness. First, after the completion of the internal control cost compilation, should be within the project department layer by layer decomposition of the responsibility cost, layer by layer signed a letter of responsibility. Clearly the responsibility of each member of the project department, who is responsible for, who is responsible for the burden. Improve the responsibility awareness of the members within the project department, can be posted on the wall, always remind the members within the project department. Secondly, by the post responsible personnel for each link, each process to implement the whole process control. In the project management department to establish "QC" group, the cost of the composition of the significant and controllable cost of focusing on the analysis, supervision, implementation of control measures; the key materials using competitive bidding methods, the ability to determine the materials, materials and bulk items using the bidding method, under the premise of guaranteeing the quality of the purchase cost reduction; scientific construction, avoiding waste. Avoid waste. Do scientific batching, scientific mixing, no waste and unqualified products. Strive for quality in construction to avoid problems and waste; control non-production costs and comprehensive expenditures. Reduce non-production expenditures, control the occurrence of unreasonable comprehensive costs, the costs that can be avoided should be strictly controlled, and fundamentally eliminated.

Four, project cost accounting

Project cost accounting methods generally have form accounting method and accounting method. The former is the elements of the department and accounting unit to collect information on a regular basis, fill in the appropriate forms, and through a series of forms, the formation of project cost accounting system; the latter is established on the basis of accounting, the use of accounting unique debit and credit bookkeeping, according to the project cost content and the scope of revenues and expenditures, the organization of the project cost accounting method. Project cost accounting to meet the basic accounting requirements at the same time, pay more attention to the responsibility of cost accounting. It is required to correctly distinguish the responsibility cost and non-responsibility cost of relevant departments (positions), and to establish an internal simulation of the factor market, and to implement internal paid settlement.

(a) Accounting for labor costs

Project accountant according to the salary (bonus) payment form, internal settlement bills and project laborers to provide the "unit project labor summary table", based on the preparation of the "wage allocation table", to carry out the allocation of production staff wages in the sub-projects. Wage allocation for production personnel of the sub-projects; wage surcharge can be allocated proportionally; labor protection fee can be directly written off into the labor cost according to the standard. Subcontracted labor cost is generally prepared by the subcontracting unit in accordance with the contract content of the bill of accounts, by the project constructor, the budgeter and the project manager, and then submitted to the company for approval in accordance with the procedures specified by the company for accounting. For projects completed over a period of time, labor subcontracting costs can be estimated first, and then included in the project cost after review by the project department, and then flushed back at the time of final settlement.

(ii) Accounting for material costs

Material costs refer to the costs that constitute the entity of the project consumed during the construction process, mainly including: main materials, structural components, other materials, amortization of turnover materials, rental and transportation costs. Material cost accounting must establish and improve a strict system of material receipt, issuance, collation, storage and refund, and a regular monthly inventory of inventory to ensure the accuracy and authenticity of the cost.

(C) Accounting for machinery use fees

The costs incurred for machinery operations by own machinery or transportation equipment are directly charged to the cost by the project department according to the actual use. The internal equipment leasing fees are recorded according to the settlement statement transferred by the company and confirmed by the relevant project personnel. Machinery costs leased externally are accounted for on a monthly basis in the way of estimation by unit shift and lease contract in normal times and adjustment by settlement.

(4) Accounting for other direct and indirect costs

Other direct costs are directly charged to cost as they are incurred. Indirect costs are costed by the project accountant in accordance with the required accounting standards and cost classification criteria. The cost division criteria are: construction work is based on direct costs, installation work is based on labor costs, and the allocation of products (labor and operations) is based on direct costs or labor costs.

Fifth, the project cost analysis

First of all, a comprehensive analysis, the actual cost of the project with the target cost, internal control costs for cross-checking, calculating the absolute and relative numbers to reflect the total cost target completion. Secondly, the cost project analysis, that is, according to the construction cost cost components of the project analysis and comparison, reflecting the cost of the project to reduce the situation, analyze the positive and negative factors, and promote the negative to positive transformation.

(A) labor cost analysis

The actual cost of labor in the project compared with the budgeted cost, and then refer to the labor department's statistics on labor wages, to find out the factors of labor cost overruns and their causes.

(B) material cost analysis

Commonly used method for factor analysis (specific formula is omitted), analyze the important materials due to the amount of materials, unit price changes on the impact of material costs. In addition, the analysis of material costs should also be material quota changes in the analysis, analysis of the utilization of waste materials, construction process changes in the analysis of the impact of material costs, and so on.

(C) machinery cost analysis

Construction machinery cost of internal control plan compared with the actual number, and then price, quantity analysis, to find out the construction company own and leased machinery on the use of savings or waste.

Sixth, the project cost assessment and rewards and penalties for cash

In the process of project internal control cost management or after the end of the regular or on time according to the project's internal control cost management, to give the person responsible for the corresponding rewards or penalties. Only a clear distinction between rewards and penalties, in order to effectively mobilize every employee to complete the enthusiasm of internal control costs, in order to reduce the cost of construction projects, increase the accumulation of enterprises, to make their own contribution.

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