Research-on-the-Engineering-Cost-Management-and-Es

ResearchontheEngineeringCostManagementandEstimationYouTao,ChenHongping,WangZuzhi,ZhaoLipingSchoolofHydraulicEngineeringChangshaUniversityofScienceandTechnologyChangsha,410076,ChinaE-mail:[e-mail]—Theslowdevelopmentoftheengineeringcostmanagementandestimationmethodhasbeenthebottleneckoftherapiddevelopmentintheengineeringindustryandconstructionproduction.Theeconomicdevelopmentofthemarketandthechanginginvestigationsubjectsurgentlyneedthereformandrenewaltothecurrentengineeringcostmanagement.TheunificationofengineeringcostmanagementsysteminChinatotheinternationalpracticeafterreformnotonlyadaptstherequirementsofnationaleconomicmarketdevelopment,butalsocreatesconditionsfortheChineseconstructionenterprisestoparticipateintheinternationalconstructionmarket.Keywords-engineeringmanagement,costestimation,BillofQuantities,engineeringquotaI.INTRODUCTIONWiththedevelopmentoftheeconomicmarket,theinvestigationscaleofengineeringprojectsinChinakeepsgrowingfast.Theannualfixedassetsinvestigationincreasesatahighrateover9.8%,andthemaininvestorsdeveloptowardsthetrendofdiversification.Multipleinvestigationsubjectscoexistsuchasgovernmentinvestigation,collectiveinvestigation,privateinvestigation,foreigngovernmentalinvestigationandtheloanfromtheforeignfinancialorganizations.Becauseofthevariationoftheinvestigationsubjects,theoriginalestimationmethodusingquotapluscost,whichonlyserveoneinvestor,thegovernment,couldnolongeradaptstothisoutsideenvironmentalchange.Theproductpriceoftheconstructiondeterminedbytheoriginalcostestimationmethodcannotreflectthenecessarysocialcostoftheconstructionproduct,theactualproductionlevelandcapabilityoftheconstructionenterprises.Alsotheproductpriceoftheconstructiondeterminedbytheoriginalcostestimationmethodcannotreflectthenecessaryadjustmentfunctionoftheconstructionproduct,themarketsignalfunctionandtheaccountingfunction.Theautomaticadjustingfunctionofthemarketcouldnotbeputintofullplayandthemarketcouldnotcarryouteffectiveresourcesallocation.Theslowdevelopmentofthecostestimationmethodhasbeenthebottleneckoftherapiddevelopmentintheengineeringindustryandconstructionproduction.Theeconomicdevelopmentofthemarketandthechanginginvestigationsubjectsurgentlyneedthereformandrenewaltothecurrentcostestimationmethod,andanurgentreformisneededtothepricingmodeloftheengineeringproductaccordingtotheeconomicmarketrule.II.CURRENTSITUATIONOFENGINEERINGCOSTMANAGEMENTANDESTIMATIONINCHINAToadapttotheoutsideenvironmentalchange,thereformneedstobecarriedouttotheengineeringestimationmethod.Especiallywiththeissueofnewquota,abigchangeoccurredintheengineeringcostestimation.Theseparationofthequantityandthepricewhichhadbeenanticipatedformanyyearsfinallyappearedinthenewquota.AndthebiddingmethodofBillofQuantitieswhichisaninternationalizedpracticehasbeenadopted.TheapplicationofBillofQuantitiesintheengineeringcircleinChinaisthebreakthroughpointoftheengineeringcostestimationmethodtotheinternationalpractice,whichsetasolidbasisfordeterminingtheproductprices.However,thebiddingmethodofBillofQuantitiesisonlyinthepreliminaryphaseinChina.Becauseofthelackofmatchingpoliciesandmechanisms,andtheshortageofapplicationexperiences,problemsexistinthebiddingmethodofBillofQuantitiesinChina,whichisnotasadvancedastheestimationmethodofBillofQuantitiescurrentlyinternationallyapplied.ThegoaloftheeconomicreforminChinaistoestablishansocialismeconomicmarketmechanism.ThemanagementmodeofengineeringconstructioninChinaistheproductofplannedeconomy.Althoughtheplannedeconomyonceworkedwell,itsshortcomingsarebecomingmoreandmoreapparent.Theexaminationandapprovalmechanismhavebeenappliedbytheadministrationdepartmentintheplannedeconomy,whichispronetoneglecttheactualrequirements978-1-4244-4639-1/09/$25.00©2009IEEEAuthorizedlicenseduselimitedto:FuzhouUniversity.DownloadedonMay16,2010at12:52:15UTCfromIEEEXplore.Restrictionsapply.fromtheengineeringmarketandmaketheinvestmenteffectivenesslow.Theadministrationdepartmenthasthedecisionpowerbuttheconstructioncompaniesorunitshavetotakealltheresponsibilitiesandrisksbeforeandaftertheconstructionprojectcompletion,whichtotallytwiststherelationshipbetweentheresponsibilityandthepower.Theplannedeconomyinhibitedthepropercompetitionandrestraintherationalutilization,allocationandoptimizationofthesocialresources,whichhasanadverseinfluencetothescientificdecision,enhancingtheinvestmentbenefitandactivatingthecreativenessofmassivedesignandconstructionpersonals.Theengineeringconstructionhasbeentransferredbythemarketeconomicadministrationmodeandtheadministrationdepartmentisinchargeofindustrydevelopmentplanning,generallayoutoftheengineeringandregulationofengineeringconstructionmarket.Theadministrationdepartmentwillnolongerparticipateorgiveinstructionstotheprojectconstructionandeconomicproductionactivitiesoftheengineeringenterprises.Astheinvestoroftheinfrastructureconstruction,theengineeringenterprisesactuallyhavetheprojectdecisionpower,themanagementpowerduringconstruction,andtheengineeringenterprisesshouldtaketheresponsibilityandhavetheirbenefits.Theengi