Budge Management Research On Vietnam Ca Mau Fertilizer Plant Project

Budge management has become an important and indispensable management mode for modern company since it was generated by GE and Dupont in1920s. Budget management becomes modern company’s optimized resource, enhance risk control, promotes operation quality, improves management efficiency, instructs and restraints company’s economic behaviors. It is an important method for company’s internal management control.This article sets the author participated Vietnam Ca Mau Fertilizer Plant Project as background, attempts to rethink and summarize project budget management by practices and experiences in the process of abovementioned project. It means to provide references on budget management for similar project, including:First of all, this article introduces budget management’s status and encountered problems in the construction company and the background and motive power to start budget management, etc.Secondly, this article illustrates the great impact that budget organization guarantee and budget environment construction put on budget management in Vietnam Ca Mau Fertilizer Plant Project, which starts from project budget management organization system, introduces each functional department’s responsibility in budget management system.Moreover, this article shows that project shall regard project process as guide, regard resource allocation as core, regard risk control as target, make related schedule, quality, safety and other targets and prepare suited construction resource plan to establish solid foundation for project budget preparation. The article analyzes the budget process management in Vietnam Ca Mau Fertilizer Plant Project. The article introduces budget preparation from project budget target planning and budget plan arrangement to financial budget and capital budget preparation, introduces method and content of budget control by project risk control, contract control, construction schedule control, material cost control, construction equipment usage cost control, manpower cost control, capital control and other aspects, and introduces condition, method and effect of budget adjustment and method of budget assessment. The article introduces project budget management’s overall coordination activities for expected target realization. Last but not least important, this article illustrates the experiences and lessons of budget management in construction project, puts forward the focused problems and corresponding solutions.