What is construction project cost budget control?

How to Exploration of construction project cost budget control. The project budget plays an important role in the cost of the entire project link of the construction project. Which will affect the economic benefits of the construction project to a certain extent.

Here are the articles to explain, Exploration of construction project cost budget control

Therefore, at this stage, the project management of most construction companies pays more attention to the project budget link to ensure that the project budget personnel can reasonably and scientifically control the project cost.

The importance of project cost budget control in the construction of construction projects

In the entire engineering project, project cost budget control is an important part and plays an important role. It includes the following points:

1. In the construction process of the project, a reasonable and scientific project cost budget can ensure the smooth development and implementation of the project. If the construction enterprise wants to avoid more problems. Such as project design changes and rework caused by the lack of completeness of the project. It is necessary to do a good job in budget management and control of project costs. In addition, once some unreasonable phenomena occur during the control of project cost. The overall investment in project construction will increase. Which will have a direct impact on the economic benefits of construction enterprises. And will seriously hinder the development of construction enterprises in a stable and sustainable direction. The pace of development.
2. In the process of construction, a reasonable and scientific project cost will directly affect the overall profitability of the construction project. To effectively reduce the project cost and reduce capital problems, it is necessary to reasonably control the project cost.

The main reasons why the cost of construction projects exceeds the budget

(1) The cause of the price of building materials.

In the process of engineering construction, building materials are particularly important and are a decisive factor in the quality and safety of construction projects, and the price of building materials will also affect the cost of the project. In the process of implementation, a lot of building materials will consume. There are many types of materials used, and many fields will involve. To this end, during the construction process of a construction project. The construction personnel must also comprehensively account for the materials used in the entire project.

(2) This is a more difficult and cumbersome task.

During this period, it is difficult to control the price of materials. For this reason, the staff must also regulate the price of building materials on the market in all aspects. According to surveys, most construction companies generally adopt different methods and methods for all-around control and management in the process of cost management of construction projects. However, due to the vast territory of our country, engineering projects distribute in many fields. Due to the long construction time, the market price cannot be correctly evaluated. Which will lead to some problems in that the cost of the project exceeds the budget during the construction process.

In addition, the evaluators of construction companies must correctly estimate the actual situation of materials and market price changes in the project cost budget. At the same time, they must also keep a certain amount of room in terms of building material prices based on the actual situation of price changes. As far as the current stage is concerned, the market supply and demand mechanism directly affect the market price of building materials. It is impossible to budget for changes in the price of building materials, which increases the difficulty of preparing the project budget. Which will lead to a large gap between the price of building materials during the budget period and the actual market price. Which will affect the normal implementation of construction projects.

(3) There is no perfect project cost budget.

In the process of preparing the project cost budget, the project will involve many aspects. So the staff of the construction enterprise must strictly require to consider all aspects. But in the actual construction process, the project cost budget will still affect by some factors. So that the project will still have many shortcomings in the implementation process. Which will directly affect the effectiveness of the project.

In expansion, when most engineering projects are under development, sometimes to obtain the opportunity to win the bid. The cost of the engineering project stands compressed to a certain extent. In many cases, to ensure the quality of the construction project. Some additional project content does not add during the preparation of the construction project. Such behavior will indirectly increase the cost of the construction project, and in severe cases, the cost of the construction project will exceed the budget.

In addition, when the relevant personnel of the construction enterprise prepares the budget for the construction project. There may be some increase or decrease in the project. Which will affect the overall development of the construction project to a certain extent. For construction companies to avoid these problems and be able to produce reasonable and scientific project cost plans. They must strengthen the management and control of construction project costs.

Effective ways to prevent project costs from exceeding budget control

(1) Strengthen and improve the comprehensive quality of construction project budget management personnel.

Project cost budget management plays an important role in the construction project process. It is professional, comprehensive, and policy-oriented work. In the construction project cost budget management work, there are high requirements for relevant cost budget management personnel. It is strictly required that project cost management personnel themselves have high comprehensive quality. They must also have a full understanding of professional knowledge and related legal knowledge.

Cost budget management personnel must also cultivate good character and strengthen their sense of responsibility for their work. Enterprises should also pay attention to regular assessment and training of cost budget management personnel in terms of moral quality and professional literacy, summarize and reflect on many aspects, and further make the construction project cost budget management work with the best effect.

(2) Reasonable and scientific project cost budgeting.

Budgeting is an important part of the process of project cost control. Scientific methods adopt for comprehensive management and control in the project cost budget to further achieve reasonable and scientific control of project cost. It is mainly reflected in:

• When the reasonable preparation of the budget, it is necessary to take into account the actual construction situation of the construction project, deepen the research and analyze the design drawings, survey reports, and topographic measurements of the construction site to ensure the rationality and scientific of the project.
• To ensure the budget of the cost of the construction project, it is necessary to understand the use of materials used in the construction project from many aspects and formulate a scientific and reasonable project cost budget plan based on the actual development situation.
• In the process of budgeting, relevant personnel must also fully understand the changes in material prices, leaving a certain amount of room for changes in material prices, and also grasp and analyze the issues related to construction materials, combine the actual market supply and demand, prepare a reasonable budget plan, and adjust the project cost budget promptly based on the price changes in the market at that time.

(3) Strengthen the adjustment and approval of project cost control.

In the process of construction of a construction project, once the project changes. It will directly affect the content of the entire construction project cost budget. Because the change in the project cost project will increase the number of construction projects and greatly increase the cost of the construction project. So the enterprise control and management personnel must strictly control the approval of the construction project cost, strengthen supervision and management work, and minimize the impact of project changes on the entire construction project.

In summary

Project cost is a very important part of the cost management process of construction projects. When budgeting, enterprise project cost personnel must take into account the current market economy environment. The actual situation of project construction is the main basis for the preparation of project costs. In the actual construction phase of the project, every management personnel of the construction enterprise must strengthen control of the cost of the construction project to avoid related problems caused by the cost of the project. Which will directly affect the cost control and management of the construction project. It will also have a certain impact on the economic benefits of the construction project.