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On the reform and development of project cost management in China?
1, understanding of the name of construction drawing budget

In the training textbook of qualification examination for cost engineers (second edition), the definition of construction drawing budget is "construction drawing budget is the abbreviation of construction drawing design budget, also called design budget." Is the design unit after the completion of the construction drawing design, according to the construction drawing design drawings, the current budget quota, cost quota and regional equipment, materials, labor, construction machinery budget price, preparation of construction and installation project cost documents. According to this definition, we can draw the conclusion that the scope of construction drawing budget valuation is the cost of construction and installation projects, and it is easy to draw such a conclusion from the name. Since it is called "construction drawing" budget, it is taken for granted that it is the construction and installation project cost expressed in the construction drawing.

In the 1950s, China copied the practices of the former Soviet Union and gradually established the project budget system, which is a set of pricing model adapted to the planned economy. Although the development of China's engineering cost pricing system has experienced many twists and turns, the word construction drawing budget has been deeply rooted in people's hearts. With the development of project cost, the connotation of construction drawing budget is also changing.

Judging from the distribution of valuation documents in various stages of engineering construction, the construction drawing budget should be the valuation document of engineering cost in the construction drawing design stage. The construction drawing budget is no longer and should not only be the cost of construction and installation, but should be understood as the total cost of the whole project at this stage. Although the project has reached the stage of construction drawing design, many expenses have been paid or are being paid, which does not affect the connotation of construction drawing budget. This is because:

① The traditional construction drawing budget in China was produced in a specific period, when it was compiled by the construction unit and audited by the design unit, the construction unit and the Construction Bank, so it was called the construction drawing budget, which was once called the "design budget".

② The understanding of the construction drawing budget is mainly determined by the main purpose of the owner's budgeting. The main purposes of the owner's budget preparation are: first, as the basis for the preparation of the pre-tender estimate; Second, the basis of investment control (also the key point) (whether the comparison with the estimated budget exceeds the estimated budget and whether the comparison with the contract price controls the investment); Third, at present, some domestic industries are still implementing the budget plus visa system (that is, the construction drawing budget still plays a settlement role).

Therefore, we can draw a conclusion that, from the owner's point of view, if we want to prepare the project cost valuation document in the construction drawing design stage, we should change the name of the construction drawing budget to design budget, or simply call it budget. In addition, the same conclusion can be drawn from the connotation of cost estimation of major developed countries in the world corresponding to China's construction drawing budget (although the name is different).

2. Does the construction project in the new period need to prepare the construction drawing budget?

According to the traditional thinking, the construction projects in our country are generally linear, that is, the construction drawing is first made, then the budget is made, then the base price is made, and then the bidding is carried out. At present, due to the reform of construction project management system, especially the reform of project management mode, the implementation of various contracting modes and the introduction of international project management mode, the idea of construction project is no longer a simple linear mode, but may also be nonlinear, such as CM mode or design/construction general contracting, so it is not necessary to prepare construction drawing budget, so it is certain that not all construction projects need to prepare construction drawing budget.

In addition, even if the project is built in the traditional way, that is, in a linear way, is it necessary to prepare the construction drawing budget? Because the state controls the project investment according to the design estimate, and now when bidding, the owner can not prepare the pre-tender estimate, so this means that the construction drawing budget can not be prepared. If there is no construction drawing budget, then the construction drawing budget as the benchmark function of investment control at this stage will be lost, and then it can only be controlled according to the design estimate (the premise of this is that the estimate must reach a certain accuracy). In the later investment control, taking the contract price as the control benchmark is more specific, accurate and targeted than taking the construction drawing budget as the benchmark. Practice has proved that this is not only no problem, but also has the advantage of saving a lot of workload for the owners and shortening the construction period of the project.

According to the above discussion, it is not to deny the role of the construction drawing budget, but to say that the construction drawing budget is the main pricing document in the whole process of project construction, and its pricing ideas, methods and basic functions are beyond doubt. It is the most basic concept of engineering valuation. It can be concluded that not all construction projects need to prepare construction drawing budgets.

3. Problems caused by computer application

In the era of "e-reform", the project cost can not be separated from the application of computers, but the current application in cost is probably such a situation: the first and most basic and technically mature application, that is, the budget software, generally needs to input the quota number and engineering quantity, and the quota consumption and unit price (quota price or market price) are directly applied by the budget software; The second kind of software is specially designed for the calculation of engineering quantity and steel bar, such as engineering quantity aided calculation software and steel bar aided calculation software, and also needs to manually input the characteristics and dimensions of drawings; The third category is the relatively advanced application software at present, that is, on the platform of CAD, the drawing features are input into the computer, and the engineering quantity is directly calculated by the computer, and the calculated engineering quantity is directly applied to the engineering budget software, that is, the engineering quantity calculation is integrated with the set quantity and set price. This technology is bound to bring great changes to the development of engineering cost. At least you can be sure that the number of budget personnel will be greatly reduced. With the increasing popularity of computer applications, how should cost personnel face it? The author thinks that the work focus of cost personnel should develop in the following directions:

(1) Because a lot of complex and basic work has been replaced by computers, from a practical point of view, it should be gradually developed into market information collection, quota conversion and supplementary quota, especially in the bidding system of bill of quantities, and it should also be developed into the compilation of bill of quantities. If you work in a bidding unit, it will be developed into a quotation (that is, the unit price estimation of the listed project). In short, we can't simply stay at the level of budgeting.

(2) In order to give full play to the role of cost personnel in construction project management, we should develop as far as possible to the preliminary work of project construction, and pay special attention to the cooperation with design, such as actively influencing the optimal design, paying attention to the control of project cost, and improving the accuracy of cost work. The higher the working accuracy, the more representative the working level of the cost engineer, and of course, the more beneficial to the investment control of the owner.

4. Is it necessary to have a quota?

Under the current conditions, especially with the "separation of quantity and price" of quotas in more and more regions in China, some people ask whether quotas have fulfilled their historical mission and cancelled them. The author thinks:

(1) The traditional quota of "integrating quantity and price" in China has great defects, and the practice of "unit price method" has lost the existing market environment.

(2) The implementation of quota "separation of quantity and price" is a major breakthrough in the reform of engineering cost valuation method in China, and it also provides conditions for the implementation of "material law". The situation of quotas is also changing. For example, the nature of the quota was "legal" at first, and later it was positioned as "mandatory". The current positioning should be "reference". It should be said that this change has adapted to the changes in the market environment in China, and the formulation is appropriate.

(3) Under the condition of bidding with bill of quantities, it should be said that as long as there is a unified project division, a unified unit of measurement and a unified calculation rule of quantities, the quota (which refers to the quota after the separation of quantity and price, that is, the standard of unit product consumption) is unnecessary, or at most it can play a reference role (for example, for some small and medium-sized construction enterprises or newly established construction enterprises, because they generally do not have all kinds of internal data of their own enterprises at present). Nevertheless, it can't be said that the quota has lost its necessity in China at this stage, because first, bidding is only a link in the whole process of construction project cost management. For example, for the owner, a lot of cost work is in the early stage of the project, such as frame calculation, estimation and budgetary estimate. Most of the owners are not professional companies, so they don't have a lot of cost valuation basis for cost management, especially there is no bidding and construction plan. Owners usually hire professional consulting agencies, but at present, China's consulting industry is not developed and does not need quotas. Second, state-owned investment is still dominant in China's construction projects. If the quota is lost, it is equivalent to losing the benchmark for controlling investment, which is not conducive to the investment control of state-owned investment projects. Third, China's quota management has been managed by specialized agencies, and a lot of data and valuable experience have been accumulated in this respect. Fourthly, judging from the practice of major developed countries in the world, they still strictly manage the cost management of government investment projects through quotas at least.

5. Suggestions for future project cost reform.

The price of construction products, in the final analysis, is an enterprise behavior through independent quotation and contract pricing. According to the requirements of WTO rules and market economy, the government should withdraw from microeconomic management as soon as possible. The price of production factors in enterprise production should not be controlled by the government, but the consumption of production factors in production should not be determined by the government because of the different production capacity, technical conditions and management level of each enterprise. In order to meet the requirements of WTO rules and market economy, from a long-term perspective, the following suggestions are put forward for the direction of China's project cost reform in the future:

5. 1 Distinguish between government investment projects and non-government investment projects

The cost management of the two types of projects should be treated differently, and the cost management of non-government investment projects (such as private, private and foreign-funded projects) should be fully liberalized in a timely manner (consumption standards should not be stipulated). According to the requirements of the market economy, the quotation is completely made by the enterprise independently (determined according to the specific construction organization design and the internal unit price of the enterprise), and the price is determined through the contract.

In order to control the investment of government investment projects and safeguard public interests, a reference consumption benchmark can be provided according to the current practice as the benchmark or upper limit of bid evaluation. The major of government investment engineering is complex, and some domestic industries still settle accounts by the method equivalent to the "budget plus visa" system. This situation must change. After joining WTO, especially according to the government procurement rules, many domestic and foreign contractors will compete together, which will affect the investment control of government investment projects and the competition of domestic contractors.

5.2 Encourage and advocate contractors to accumulate cost consumption and cost data of construction projects as soon as possible.

For a long time, the pre-tender estimate has played an important role in China's bid evaluation methods, and it is based on the budget. Even if there is no pre-tender estimate, winning the bid at a reasonable low price is not necessarily the lowest price. In particular, the upper and lower limits of effective bidding are generally stipulated, which makes the contractor rely not on competitive bidding, but on how to meet the bid evaluation methods. At least, he must first find a way to be within the limits, that is, "short-listed", in order to win the bid. On the other hand, under the control of the idea of "getting the project first", neither the construction cost nor the construction cost can be accurately determined in advance, and the price is blindly lowered, which leads to vicious competition and eventually leads to project quality problems. Based on the above reasons, coupled with the long-term construction project cost management according to the quota or reference quota, most enterprises have no internal cost data, especially small and medium-sized enterprises and newly established enterprises.

In a word, the contractor should pay attention to the consumption of construction cost and the accumulation of cost information, strive to improve the management level of Chinese contractors, adapt to the new situation of joining WTO, consolidate the domestic market share and participate in international competition.

5.3 Vigorously develop China's engineering cost consulting business.

Many owners do not have the ability of project cost management. In project management, owners usually hire professionals or institutions, such as cost companies and bidding agencies. Most foreign investment projects in China are like this. They usually hire cost consulting agencies from abroad. After China's entry into WTO, a large number of foreign consulting institutions will flood into China, which is bound to challenge the cost consulting institutions in China. China's engineering cost consulting industry has just started, and it needs to make great progress in a short time to meet the needs of international competition.

5.4 Improve the level of project cost management personnel

China's traditional project budget system has created a large number of project budget personnel. According to the traditional custom, they generally only pay attention to the calculation of engineering quantity and the formulation of quota (including quota consumption and quota unit price), which is not suitable for the quotation of bill of quantities. For a long time, China's technology and economy are separated, which makes most people who are engaged in budget estimation do not care about technology and technicians do not care about economy, which makes it difficult for bidders to establish cost estimates before bidding on a fast and accurate basis. Because of the existence of quota, as long as it can be used, and there is a special organization to formulate quota, we usually don't pay much attention to the accumulation of engineering cost valuation data; Most of the staff only know how to make budget estimates, and rarely participate in the preliminary work of the project, failing to devote themselves to the whole process of the project and comprehensive cost management, which makes the scope of services provided to the owners very limited and fails to play the due role of cost personnel in controlling the project investment in the early stage of the project; China has implemented the qualification system of cost engineers for a short time, and the number of cost engineers is limited; Because China has been influenced by the planned economy, most people are not familiar with the current international projects and the practices of major developed countries. After China's entry into WTO, China's project cost reform will be in line with international standards, but it is not suitable for the time being. In addition, the influx of foreign engineering cost institutions will make the competition very fierce, which poses a severe challenge to engineering cost practitioners and engineering cost consulting industry in China.

6. Summary

To this end, the vast number of engineering cost practitioners must first change their concepts, actively adapt to and strive to improve their professional level, integrate with the international community, and participate in competition; Learn and expand knowledge and experience in engineering technology, contract and law; Actively participate in the preliminary work of the project and pay attention to collecting and accumulating project cost information; Make your own contribution to the development of engineering cost consultation in China.

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