Confirmation And Identification Of Project Cost In Constructional Item

With the continuous improvement of Chinese socialist market economy system, the uninterrupted deepening of opening-up, especially with the speeding-up of internationalization after the entrance of WTO, the economic construction in China has grown rapidly. The capital construction, which takes the important position in the construction of fixed assets, is now in the very vigorous developing period, especially in the recent 10 years. As a developing country, how to reasonably and efficiently utilize and allocate the limited construction fund under the conditions of preserving the scale, standard, construction period, and project quality, of reducing the project cost, and of saving investment cost has become the important issue to be necessarily studied. The goal of the above is to improve the economic and social benefit of project investment, and to strengthen the whole process cost management.Though we have established the concept of whole process cost management, and known the necessity of that, there're still many problems which affected the efficient implementation of whole process cost management. Now, there're many "three exceeding" projects (the projects whose budgetary estimate exceeds preliminary estimation, budget exceeds budgetary estimate, final accounts exceeds budget), "fishing" projects, and "messy building" projects in construction fields in China. All these phenomena have internal relations with out-of-control cost in different stages in the project construction. The investments of construction projects have the features of large amount, long period, and being one-off, which determines that a whole-process and omnidirectional management system must be established during the foundation of whole process cost management. This paper is to analyze the ubiquitous problem of cost management in projects construction in China, and to seek the routes and methods which can improve whole process cost management so that the scientific and systematic cost management can be achieved. That can also help coordinate with international routines, which makes Chinese constructive industry keep ahead in the international competition.This paper fully reviews the historical and present theoretic and practical situation of Chinese and overseas cost management by means of qualitative analysis and quantitative analysis. It also analyses the present situation and existing problems of Chinese cost management in terms of different stages and aspects in the whole process of project construction, which results in the necessity of whole process cost management. Finally, it proposes the important concept of establishing the system of whole process cost management.