Cost management and control of water conservancy and hydropower projects?

Construction cost control is the core of project management. Firstly, the paper briefly summarizes the concept and characteristics of water conservancy and hydropower project cost, and analyzes the main influencing factors of water conservancy and hydropower project cost management. Combined with the actual situation of some projects implemented at present, this paper points out the main problems existing in the cost management of water conservancy and hydropower projects in China, finds out the main reasons of the problems, and makes a preliminary analysis. Finally, the countermeasures are put forward in order to provide reference for similar projects and save costs.

1 Overview of cost management of water conservancy and hydropower projects

The cost management of hydropower construction project is to plan, organize, control and coordinate the expenses incurred during the project implementation, realize the predetermined cost target and reduce the actual cost as much as possible on the premise of ensuring the project quality and construction period. In construction project management, the ultimate goal is to make the project achieve the goals of high quality, short construction period, low consumption and good safety, and cost is a comprehensive reflection of the economic effects of these four goals. Therefore, the cost management of hydropower construction project is the core of hydropower construction project management.

There are many factors affecting the cost management of water conservancy and hydropower construction projects, which are objective or external, subjective or internal. It mainly includes the following points: changes in government policies and market conditions, such as national tax and fee reform and adjustment of land acquisition and resettlement fees. It has an impact on the cost of water conservancy and hydropower construction projects, such as labor costs and raw material prices, which have doubled in recent years due to changes in market conditions, which has a great impact on cost management and control.

2 Problems in cost management of water conservancy and hydropower projects

2. 1 The feasibility study is not deep enough.

At present, the depth of feasibility study of water conservancy and hydropower projects in China is generally insufficient. According to the relevant provisions of the feasibility study of water conservancy and hydropower projects, the main tasks in the feasibility study stage include basically selecting the project scale, basic dam types and basic types of main buildings, preliminarily selecting the overall layout of the project, preliminarily selecting the main electromechanical equipment, preliminarily determining the main problems in the construction organization design, and whether the construction area is reasonable or not, which largely determines the fate of the proposed project, affects the level of project cost, the length of construction period, the quality of construction, and also affects the quality after the project is completed.

2.2 The whole process of the project cannot be effectively controlled.

Investment management and control of water conservancy and hydropower projects is an important work in engineering construction. Investment control is needed in five stages: decision-making, design, bidding, construction and operation. Due to the long-term influence of the planning system, there is still no government department or agency entrusted by the government to manage and control the whole process of engineering investment in China, and the investment determination and control at all stages of engineering construction are out of line. Some localities and departments are struggling for projects and loans. In order to get the design fee and undertake more tasks, the design unit deliberately depressed the project investment in the feasibility study and preliminary design stage, deliberately omitted the project, artificially depressed the investment estimate and budget estimate, and kept it within the examination and approval authority of the relevant departments.

2.3 management organization and mechanism is not perfect

At present, China's large and medium-sized water conservancy and hydropower construction enterprises have been continuing the extensive cost management model. Any management activity must establish a management system that combines responsibility and rights to achieve results, and cost management is no exception. For example, some project management departments simply attribute the responsibility of project cost management to the cost management supervisor, without forming a perfect cost management system. For example, when a certain project is completed and settled, it is found that the amount of engineering that should be settled to subcontractors after deducting the amount of reinforcement materials is negative, and the project department immediately finds out the reason, and finds that a large number of reinforcement materials exceed the design amount, and the reinforcement transferred by subcontractors from the project department is obviously different from the amount of reinforcement in the settlement project. It turns out that the price of steel reinforcement materials transferred by subcontractors from the project department is obviously lower than the market price, and subcontractors resell the materials to earn the difference, resulting in more than 200 tons of overshooted steel reinforcement materials. At this time, the subcontractor has completed the exit, so it is impossible to deduct money, and the project suffers a loss constraint of 350,000 yuan.

2.4 Project budget management issues

After all, the budget estimate is a predictive calculation. In the process of project implementation, influenced by various conditions, it is inevitable that the investment amount of individual projects will increase or decrease or the projects outside the budget will increase. Especially for projects with long construction period and large scale, coupled with insufficient design depth, this influence and increase or decrease are more obvious. According to the current system, any single project that exceeds the budgetary estimate and the increase of items outside the budgetary estimate must be reported to the original examination and approval authority for adjustment, even if it does not exceed the total budgetary estimate. The construction unit has no right to use the funds of the surplus project to adjust, which is very difficult to implement, and it is not conducive to the construction management unit to deal with the special problems in the construction process in time. How to allow the project construction unit to adjust the surplus and deficiency between individual items under the premise of not exceeding the total budget estimate. Adhere to the examination and approval system for large-scale new single projects and give full play to the role of owners in project management.

3 water conservancy and hydropower project cost management measures and suggestions

3. 1 Strengthen the management of construction drawing design stage

Preside over the joint review of construction drawings, solicit the opinions of designers for major design changes and negotiations proposed by the company, and issue relevant materials and supporting documents when necessary for the reference of the company and designers to improve the design content of construction drawings. Designers who regularly feed back the engineering information will know something about the construction progress, and will actively correct possible design errors in addition to handling the situation during construction according to the requirements of site supervision. Before the construction of important divisions and special subdivisional works, designers are invited to the site to negotiate with the owner, supervisor and construction contractor to solve related problems, so as not to affect the overall design intent. Cooperate with supervision and design, and carry out phased inspection, partial acceptance, intermediate acceptance and completion acceptance of the project according to the requirements of overall progress, so that the project can be qualified or excellent at one time. Organize design and supervision to participate in the procurement of new materials. Coordinate and solve the problems encountered between the general contractor and the design in construction, and assist the design to solve the changes caused by other unforeseen factors.

3.2 Strict bidding is an important basis for investment control.

1) straighten out the bidding management system of water conservancy and hydropower construction projects. Water administrative departments at all levels should set up a unified bidding management committee (or organization) for water conservancy and hydropower construction projects, and set up offices for water conservancy, hydropower, aquatic products, flood control, soil and water conservation, water supply, irrigation, waterlogging control, geological exploration and other projects and several professional bidding leading groups as needed. 2) Standardize the specific procedures of bidding management. Qualification content of the bidder: it has legal person qualification; Have the qualifications required for the bidding of this project; Enterprise status (personnel, equipment, finance); The existing equipment of the enterprise and its status; Name, position, title, qualification, etc. The person in charge and the main person in charge to be stationed in this project. 3) Strengthen internal and external supervision and investigate and deal with illegal cases. By the tender management committee for the community to hire people from all walks of life who are familiar with business, decent style, sense of justice and sense of responsibility as moral supervisors of bidding management of construction projects, to evaluate and supervise the bidding work of trading centers and related professional groups to prevent corruption.

3.3 Strengthen the construction technology control of water conservancy and hydropower projects

1) saves material consumption. Material constitutes the entity of cost, and material consumption accounts for a large proportion in the engineering cost of railway construction projects, generally accounting for about 60% ~ 70%. With the progress of technology and the improvement of labor productivity, the proportion of material consumption in the cost will increase. Therefore, we must take serious measures from the aspects of material procurement, transportation, use, storage and recovery after completion. 2) Improve the utilization rate of mechanical equipment. Strengthening the management of mechanical equipment and improving its intact rate and utilization rate can speed up the project progress and reduce the expenditure of machinery use fees, thus reducing the project cost. The main contents of project construction equipment management include: equipment selection, rational use, inspection and maintenance, maintenance and supply of equipment accessories. 3) Strengthen construction management and save construction management fees. When the expenditure level is basically stable and reasonable, completing the project construction task ahead of time or later will affect the reduction or cost overrun of management expenses. Therefore, improving labor productivity, striving to complete the project construction task ahead of schedule and strengthening the control of management fee expenditure can effectively control the construction management fee. The control of the expenditure level of management fees can be based on the principle of "simplification, economy and high efficiency", streamlining management institutions, reducing management levels, improving work efficiency and quality, and managing in strict accordance with expenditure items. Expenditure items with large cost overruns can be reviewed and signed by the project manager or cost control engineer.

3.4 Project Budget Management in the Implementation Stage

1) coordination with the design unit. If the contents of the survey and design documents of construction projects need to be significantly revised, the construction unit shall report them to the original examination and approval authority for approval before revision. That is, major design changes must be reported to the original examination and approval authority for approval. So what is a major design change? The author believes that any of the following circumstances should be a major design change: ① the axial positions of main buildings such as water retaining, water discharging and water diversion (transportation) have been greatly adjusted, the cross section has changed greatly or the reinforcement scheme has changed; Change of energy dissipation type of discharge structure; (2) Major changes in dam seepage control design scheme; (3) The foundation treatment scheme of water retaining and drainage buildings has changed or the treatment scope has changed greatly; (4) Major changes have taken place in the design scheme of metal structure and electrical equipment transformation; (five) other major changes involving engineering safety and public safety. In order to standardize the management of design change, it is suggested to introduce the management method of major design change of the project. For the examination and approval of major design changes, we can refer to the practices of relevant provinces. For example, in Zhejiang Province, major design changes of dangerous reservoirs are examined and approved by the provincial water administrative department and reported to the original preliminary design examination and approval department (provincial development and reform commission) for the record, so as to simplify procedures and improve efficiency.

2) Coordinate with the supervision unit. The supervision unit shall strictly implement the supervision quality control, inspection and management system, and monitor the construction unit accordingly to ensure the quality is qualified and create excellence. For the construction technology that must be inspected and tested according to the contract, the inspection and test time shall be agreed with the supervision engineer. Although the general contractor has lifelong responsibility for the whole project quality, the dereliction of duty and mistakes of the general contractor have not attracted the attention and concern of the supervision unit, which can be regarded as the mistakes of supervision work, and the supervision unit should bear the responsibility of oversight. If serious negligence occurs many times, it should be reported to the company, because a warning is given to the supervision unit. The company should support the work of the supervision unit, put an end to the abnormal phenomenon that the site construction general contractor does not obey the supervision work, so that the instructions of the supervision engineer can be fully implemented.

3.5 Strictly control the project settlement.

The project settlement will determine the project cost of the construction project and ultimately the project investment. The construction unit is required to seek truth from facts and settle accounts in strict accordance with the regulations. The project settlement is based on the engineering quantity and contract price confirmed by the supervision engineer, and the project payment is made. The procedure of payment review is as follows: the contractor applies, the supervision engineer reviews (engineering quantity), the contract office reviews (contract price) and issues payment vouchers, and the financial office handles payment. In the process of project construction, the owner has formulated and continuously improved the relevant systems, methods and implementation details of Xiaolangdi project planning management, contract management, bidding management, external entrusted project management, infrastructure project management, equipment and materials procurement management, and statistical work. In practical work, the owner insists on following the rules and regulations, from project approval, bidding and procurement, fund arrangement, project execution management and supervision to project payment. All links are strictly implemented according to procedures and standardized management. The upper and lower levels, departments and departments are linked together through rules and regulations, supporting each other, cooperating with each other and restricting each other, and playing the role of each link. In the process of conscientiously implementing the rules and regulations, constantly sum up and improve the system. Practice has proved that sound rules and regulations and strict compliance with rules and regulations ensure the standardization and continuity of investment management of Xiaolangdi project construction, and play an indispensable role in construction investment management.

In short, with the rapid development of water conservancy and hydropower projects today, it is particularly important to continuously strengthen investment management and control and improve project investment efficiency. The author puts forward his opinions through practical experience, hoping to inspire and draw lessons from the investment management and control of water conservancy and hydropower projects currently under construction.

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