What is the important role of total cost management in water conservancy and hydropower?

Total cost management is conducive to comprehensively considering the construction cost and operation cost of the project, striving to realize the construction and operation of the project with the minimum life cycle cost and striving to maximize the investment benefit of the project. In this paper, the application of total cost management in water conservancy and hydropower projects is discussed, hoping to have reference significance for related practitioners.

1 whole process cost management

1. 1 Cost management in survey and design stage

Survey and design stage is an important link in cost control of water conservancy and hydropower projects. We must ensure the depth and quality of survey and design work, implement quota design, optimize design scheme, control project cost in advance, and try our best to eliminate unnecessary investment.

1.2 cost management in construction preparation stage

Construction preparation of water conservancy and hydropower projects mainly includes land acquisition and resettlement, pre-project construction and bidding for main projects.

1.2. 1 Land-expropriated immigrants should collect complete and accurate first-hand information, understand and master the actual situation and relocation expectations of immigrants, and strengthen communication and coordination with immigrants and local organizations. On the one hand, we should be people-oriented, on the other hand, we should adhere to national policies and strive to achieve "timely land acquisition, timely immigration, no duplication, no delay in work and no increase in investment".

1.2.2 The prophase projects such as traffic and diversion should be scientifically planned, which should not only meet the requirements of the main project construction, but also ensure that the construction is not repeated and avoid investment waste. It is necessary to ensure the timely completion and create conditions for the construction of the main project, otherwise the construction period of the main project will be delayed and the project cost will rise.

1.2.3 Do a good job in the bidding scheme of the main project bidding, reasonably divide the bid sections, and attach importance to the quality of the bidding documents. The bidding documents shall be standardized, complete and accurate. For difficult problems such as over-excavation, over-filling and over-irrigation, the owner should organize relevant experts to study and put forward reasonable and feasible solutions. It is necessary to ensure the depth of survey and design in the bidding stage, so that the description of the project and the submitted bill of quantities in the bidding documents are as accurate as possible, so as to reduce the design changes during the implementation and reduce the claims and compensation made by the contractor on the grounds of design changes. For the "conditions provided by the owner" stipulated in the tender documents, we must pay close attention to the implementation in advance and provide them on time with good quality and quantity.

1.3 cost management in construction stage

The cost control target is formulated in blocks, and the cost deviation analysis system is established in blocks, and a perfect contract management system, building materials procurement and supply system, design change control procedures, measurement and payment procedures, claim processing procedures, and design optimization reward mechanism are established.

1.3. 1 Prepare cost control target Before the project starts, according to the bidding scheme and project investment budget, combined with the market price and risk cost evaluation, formulate the cost control target of each bid section as the basis for analyzing the range and direction of cost change during the implementation period.

1.3.2 Establish the cost deviation analysis system, and establish the cost deviation analysis system of each bid section by using earned value analysis and other methods. During the project implementation, the data of each bid section will be analyzed regularly (or in stages) according to the system, and then the rectification warning will be put forward.

1.3.3 establishing a design change control program to control design changes is the key means to control costs. During the construction of each bid section, the design change control procedure must be strictly implemented, and all changes must go through the necessity, feasibility review and cost change analysis according to the procedure before making a decision on whether to change.

1.4 cost management in completion acceptance stage

Collect basic data such as construction drawings, design change notices, supervision engineer's on-site visas and original topographic survey data, and confirm their completeness, authenticity and effectiveness. On this basis, according to the provisions of the contract, the completed quantities are formed. For changes, policy changes and market price fluctuations, relevant expenses need to be adjusted according to the contract.

1.5 cost management during warranty period

During the warranty period, maintenance, rework, defect treatment and other expenses. It should be handled according to the contract.

2 Total factor cost management

2. 1 project cost management

The construction costs of water conservancy and hydropower projects include the construction costs of dams, flood discharge facilities, water diversion facilities, main and auxiliary workshops, substations, transportation, houses and other buildings, the purchase and installation costs of electromechanical equipment and metal structures such as hydraulic turbines, generators, cranes, gates, trash racks, hoists, land acquisition compensation and resettlement costs, and independent costs such as construction management fees, production preparation fees, scientific research and survey design fees.

All kinds of buildings should control the engineering quantity by quota design, design optimization and strict control of design changes, reduce the consumption of labor, materials and construction machinery by optimizing construction organization and construction technology, and control the project price by competitive means such as bidding and price comparison. For mechanical and electrical equipment and metal structures, it is necessary to strengthen the design and attach importance to the selection and bidding.

Land-expropriated immigrants should find out the situation in advance, do a good job in the physical quantity survey visa, prevent over-calculation and double-calculation, make a relocation and resettlement plan in advance, actively publicize relevant national policies, and try to avoid "temporary resettlement" and "intermediate transitional resettlement" and avoid waste of investment. For supervision, scientific research, survey and design, the undertaker should be selected through bidding competition.

2.2 Time limit for a project cost management

Time limit for a project refers to the expenses incurred by taking corresponding measures to realize the time limit for a project, including the preparatory work before construction and the expenses of extra manpower, materials and construction machinery and equipment to ensure the time limit for a project during construction. Claims caused by delay in construction period, etc. The owners of water conservancy and hydropower projects should work together with design institutes and supervision engineers to formulate a reasonable time limit for a project, so as to avoid work rush and slowdown as much as possible, and avoid the inconsistency between the previous and subsequent processes. Optimize and improve the construction organization design, and organize the construction as balanced and planned as possible. Use earned value analysis method to analyze the deviation of construction period regularly, and establish the integrated management of construction period, cost and quality.

2.3 Quality Cost Management

Quality cost includes expenses incurred to reach the specified quality level and losses caused by failure to reach the specified quality level. Water conservancy and hydropower projects have large investment, long service life and great social impact. Once there is a quality problem, it will often affect the progress of the project, cause economic losses and increase costs. Therefore, we should pay special attention to quality management.

It is necessary to establish a quality assurance system, improve the quality management organization, strictly implement the quality and technical standards, adhere to the three-level control system of contractor self-inspection, supervision engineer inspection and quality supervision station supervision, and take practical preventive measures for key parts and special processes to avoid quality accidents and reduce losses as much as possible.

2.4 Safety cost management

Safety expenses include safety production guarantee expenses and safety accident losses. Water conservancy and hydropower engineering projects have many construction personnel and many working surfaces, and sometimes blasting excavation, formwork installation, concrete pouring and equipment installation overlap, which has many security risks. Establish a safety production management system, formulate a safety production assurance plan, and strengthen safety knowledge and skills training. Special operators must hold relevant certificates, be equipped with sufficient safety appliances, strengthen equipment management, carefully identify and prevent hazards, formulate emergency plans, implement safety assurance measures, and strengthen inspection and supervision of safety production.

2.5 Environmental protection cost management

Environmental protection of water conservancy and hydropower projects mainly includes soil and water conservation and water environmental protection. During the construction period, the regulations of the state and local governments on environmental protection shall be strictly observed, and the work shall be carried out according to the environmental impact report of the project approved by the state. Scientifically plan the borrow yard for local materials such as soil, stone and sand and the waste storage yard for earthwork excavation, and take engineering measures to prevent soil erosion. Waste water, sewage and garbage should be treated harmlessly and cannot be directly discharged or dumped.

3 Total risk cost management

3. 1 Establish a risk management mechanism

Strengthen the risk awareness of the project management team and all participating units, and train relevant personnel in risk management knowledge. Organize relevant departments and professional experts to form a risk management organization, responsible for risk identification and evaluation, and formulate measures and plans to deal with risks.

3.2 Risk Identification and Measurement

The risks in the construction of water conservancy and hydropower projects mainly include: force majeure such as earthquake, super-standard flood, debris flow, explosion, landslide and other safety accidents, design defects, changes in geological conditions, quality defects of equipment manufacturing, quality defects of building materials, accidents caused by violation of operating rules in the construction process, quality defects of supervision units and survey and design units, coordination and cooperation among contractors in various tenders, changes in relevant policies of the state and local governments, price fluctuations in the construction market, interest rates of bank loans, etc.

The inducement, development conditions and impact on project cost of different risks are different. Risk management institutions should carry out regular and irregular investigations and studies, put forward specific risk lists, and evaluate and measure the probability, scope, time and progress of risks and their impact on project costs. On this basis, make a risk response plan.

3.3 Control of Risk Events

The means of risk control include avoidance, containment, transfer, dissolution, sharing and tolerance. , and should be selected according to the specific characteristics of the risk. Risk control should define responsibilities and implement them to specific units, departments and individuals. It is necessary to track the process and results of risk control and evaluate the performance afterwards.

To sum up, due to the different national conditions and the characteristics of the industry itself, it is not easy to apply total cost management to China's water conservancy and hydropower projects, but the research and discussion on it can bring us some new ideas and methods, which is of reference significance for us to do a good job in cost management of water conservancy and hydropower projects.

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