Analysis of dynamic management and control of construction costs
To maximize economic benefits and maintain market competitiveness, construction firms must focus on dynamic management and control of construction prices at all stages of construction. This paper presents a dynamic management and control analysis of the price of construction work。
In the past construction management models, most construction enterprises were not sufficiently aware of the dynamic management and control of construction costs and did not pay much attention. Therefore, construction enterprises should deepen their research into the dynamic management and control of construction prices and fully recognize their importance, so that the lessons learned can be applied to the dynamic management and control of actual construction prices, thus saving construction costs, improving the economic efficiency of enterprises and improving market competitiveness。
I. Project advance management and control of project projects
Preparatory work for the pre-construction period included decision-making, design and bidding for construction projects, among other things, with the greatest impact on the overall price of construction work being determined by the results of the bidding exercise. The purpose of dynamic management and cost control of construction construction costs is achieved through the optimal selection of the construction design programme, construction unit and construction materials and equipment required through the solicitation phase. Therefore, it is essential that the entire bidding exercise be conducted in a manner that is fair and impartial and that a comprehensive assessment of the full range of competencies, such as industry reputations, qualification levels, contractual spirit, etc., be applied to the construction units that come forward and that ultimately select the construction units that are reasonably priced and of a secure quality, saves both the cost of construction and significantly reduces the probability of construction quality problems. The dynamic management and control of the construction price were effectively achieved through control over the selection process of the construction unit。
Ii. Proceedings management and control of the proceedings of the construction
The construction phase is by far the largest in terms of cost inputs for construction work, so it is also an important part of price dynamics management and control for construction work. Therefore, in the broad context of compliance with the construction contract, all aspects of the work affecting the pricing of construction work should be carefully pursued and the relationships between the various elements harmonized. A careful study of the technical and economic problems encountered during the construction phase will suggest a range of possible ways to contain the cost of construction to the best of its ability and to maximize the economic impact of construction enterprises。
The construction of a building complex in a city centre that combines high-rise dwellings with commercial walking streets in its cultural square will be carried out at a total cost of $1. 5633 million, for a total construction period of 660 days and for a total of 68435 m2, with a framework structure divided into two basements and 24 floors on the ground, and will be followed by an example analysis of the dynamic management and control of construction prices during the construction phase。
1. With regard to the design of the construction programme, the team of technical technicians in the engineering sector has repeatedly demonstrated that the best options for cost savings, shorter work schedules and quality assurance have been selected to ensure maximum input output for the enterprise. The temporary facilities required in the initial stages of construction, after a multi-comparison process, were eventually selected for the installation of the mobile units, and the machinery required for the construction was combined with the own lease。
Controlling the cost of labour, materials and equipment is an important part of the overall cost control of the project. The labour cost of the project works was $3. 012 million, the cost of materials was $7. 53 million and the cost of machinery and equipment was $1. 56 million, or approximately 80 per cent of the total construction price. The selection of socially reputable labour companies, subject to ensuring that the construction works are carried out manually, maintain stability of costs and achieve control of labour costs; develop an in-depth understanding of the major material markets, and then select and enter into supply contracts with construction materials that are consistent with the construction requirements and of the same quality, in order to achieve control of material costs; and select the reputable equipment leasing companies to cooperate in ensuring the safety of construction, in order to maximize output from equipment inputs and control the cost of machinery and equipment。
3. Reasonable scheduling of construction schedules and increased emphasis on quality management. It is important to ensure that available resources are used rationally in the scheduling of work, that the duration of work is guaranteed and that cost savings are achieved. In addition, the cost of the project is actually positive in relation to the overall quality level of the project and can be divided into control costs for quality assurance costs and failure costs for loss-based costs. Therefore, in accordance with the construction contract's work schedule and quality standards, the construction schedule at the various nodes has been rationalized to find the best cost-control option. In the project, the construction unit requested the contractor to provide a summary of its work for the current month (e. G., progress of work, investment completion ratio, etc.) and a work plan for the following month on the 25th of each month。
4. Improved personal qualities and management of managers. The high and low quality of managers has a direct impact on the cost of investing in the management of construction, which is also important for the dynamic management and control of construction prices. It is therefore necessary to enhance the job awareness of construction managers, improve their personal integrity and improve the relevant regulatory and regulatory frameworks and standardize the operation of construction。
Iii. Dynamic management and control of construction works in the context of design changes
During the actual construction process, design changes were required because of inevitable discrepancies between the physical circumstances of the construction site and the design options, or because of unforeseen external factors. A change in the construction design would inevitably result in fluctuations in the construction price. Therefore, legal procedures must be followed to ensure that the parties are complete and that detailed records are maintained as a result of the cost changes associated with the design changes。
Therefore, in order to manage the construction price better, it is necessary to minimize the probability of design changes occurring, whether to save costs or to adapt to design changes actually made in construction, to exercise reasonable control over the construction contract price and to achieve dynamic management and control of construction price。
Iv. Dynamic management and control of construction costs during the completion phase
The completion phase of the construction works is the liquidation phase of the overall cost of the works, at which point the information on the components of the entire project is completed, to ensure that they are complete and correct, in particular, to review the calculation of the volume of work and the rates to be charged, to analyse whether the cost is greater than the financial cost, whether the amount of materials procured is consistent with the actual cost of the materials, and whether the purchase price is consistent, and to submit the settlement to the construction unit. If, during the audit process, significant discrepancies were found, it was necessary to repeat the statistics and identify the reasons to ensure the correctness of the settlement income。
Concluding remarks
In summary, for construction enterprises to maximize their economic benefits and maintain sufficient market competitiveness, emphasis must be placed on dynamic management and control of construction prices at all stages of construction. Analysis。
In the past construction management models, most construction enterprises were not sufficiently aware of the dynamic management and control of construction costs and did not pay much attention. Therefore, construction enterprises should deepen their research into the dynamic management and control of construction prices and fully recognize their importance, so that the lessons learned can be applied to the dynamic management and control of actual construction prices, thus saving construction costs, improving the economic efficiency of enterprises and improving market competitiveness。
I. Project advance management and control of project projects
Preparatory work for the pre-construction period included decision-making, design and bidding for construction projects, among other things, with the greatest impact on the overall price of construction work being determined by the results of the bidding exercise. The purpose of dynamic management and cost control of construction construction costs is achieved through the optimal selection of the construction design programme, construction unit and construction materials and equipment required through the solicitation phase. Therefore, it is essential that the entire bidding exercise be conducted in a manner that is fair and impartial and that a comprehensive assessment of the full range of competencies, such as industry reputations, qualification levels, contractual spirit, etc., be applied to the construction units that come forward and that ultimately select the construction units that are reasonably priced and of a secure quality, saves both the cost of construction and significantly reduces the probability of construction quality problems. The dynamic management and control of the construction price were effectively achieved through control over the selection process of the construction unit。
Ii. Proceedings management and control of the proceedings of the construction
The construction phase is by far the largest in terms of cost inputs for construction work, so it is also an important part of price dynamics management and control for construction work. Therefore, in the broad context of compliance with the construction contract, all aspects of the work affecting the pricing of construction work should be carefully pursued and the relationships between the various elements harmonized. A careful study of the technical and economic problems encountered during the construction phase will suggest a range of possible ways to contain the cost of construction to the best of its ability and to maximize the economic impact of construction enterprises。
The construction of a building complex in a city centre that combines high-rise dwellings with commercial walking streets in its cultural square will be carried out at a total cost of $1. 5633 million, for a total construction period of 660 days and for a total of 68435 m2, with a framework structure divided into two basements and 24 floors on the ground, and will be followed by an example analysis of the dynamic management and control of construction prices during the construction phase。
1. With regard to the design of the construction programme, the team of technical technicians in the engineering sector has repeatedly demonstrated that the best options for cost savings, shorter work schedules and quality assurance have been selected to ensure maximum input output for the enterprise. The temporary facilities required in the initial stages of construction, after a multi-comparison process, were eventually selected for the installation of the mobile units, and the machinery required for the construction was combined with the own lease。
Controlling the cost of labour, materials and equipment is an important part of the overall cost control of the project. The labour cost of the project works was $3. 012 million, the cost of materials was $7. 53 million and the cost of machinery and equipment was $1. 56 million, or approximately 80 per cent of the total construction price. The selection of socially reputable labour companies, subject to ensuring that the construction works are carried out manually, maintain stability of costs and achieve control of labour costs; develop an in-depth understanding of the major material markets, and then select and enter into supply contracts with construction materials that are consistent with the construction requirements and of the same quality, in order to achieve control of material costs; and select the reputable equipment leasing companies to cooperate in ensuring the safety of construction, in order to maximize output from equipment inputs and control the cost of machinery and equipment。
3. Reasonable scheduling of construction schedules and increased emphasis on quality management. It is important to ensure that available resources are used rationally in the scheduling of work, that the duration of work is guaranteed and that cost savings are achieved. In addition, the cost of the project is actually positive in relation to the overall quality level of the project and can be divided into control costs for quality assurance costs and failure costs for loss-based costs. Therefore, in accordance with the construction contract's work schedule and quality standards, the construction schedule at the various nodes has been rationalized to find the best cost-control option. In the project, the construction unit requested the contractor to provide a summary of its work for the current month (e. G., progress of work, investment completion ratio, etc.) and a work plan for the following month on the 25th of each month。
4. Improved personal qualities and management of managers. The high and low quality of managers has a direct impact on the cost of investing in the management of construction, which is also important for the dynamic management and control of construction prices. It is therefore necessary to enhance the job awareness of construction managers, improve their personal integrity and improve the relevant regulatory and regulatory frameworks and standardize the operation of construction。
Iii. Dynamic management and control of construction works in the context of design changes
During the actual construction process, design changes were required because of inevitable discrepancies between the physical circumstances of the construction site and the design options, or because of unforeseen external factors. A change in the construction design would inevitably result in fluctuations in the construction price. Therefore, legal procedures must be followed to ensure that the parties are complete and that detailed records are maintained as a result of the cost changes associated with the design changes。
Therefore, in order to manage the construction price better, it is necessary to minimize the probability of design changes occurring, whether to save costs or to adapt to design changes actually made in construction, to exercise reasonable control over the construction contract price and to achieve dynamic management and control of construction price。
Iv. Dynamic management and control of construction costs during the completion phase
The completion phase of the construction works is the liquidation phase of the overall cost of the works, at which point the information on the components of the entire project is completed, to ensure that they are complete and correct, in particular, to review the calculation of the volume of work and the rates to be charged, to analyse whether the cost is greater than the financial cost, whether the amount of materials procured is consistent with the actual cost of the materials, and whether the purchase price is consistent, and to submit the settlement to the construction unit. If, during the audit process, significant discrepancies were found, it was necessary to repeat the statistics and identify the reasons to ensure the correctness of the settlement income。
Concluding remarks
In summary, for construction enterprises to maximize their economic benefits and maintain sufficient market competitiveness, emphasis must be placed on dynamic management and control of construction prices at all stages of construction。
