The Research On The Control Of Owner's Payment And Settlement

Construction project's payment and settlement took place in the phase of project implementation which cost the largest amount of money. For the owners, how to control the project cost with huge amounts of investment in a long time and dynamic changes, so as not to exceed project budget, and control the actual bias between the payment/settlement and engineering efficiently, is a complex task.The Payment and settlement, is throughout the entire project implementation phase, with the overall role of the project cost control in the main line, but also the core of this paper. Analysis the payment/settlement process'critical path and critical control points, and study it with certain theoretical tools and methods, finally propose a set of solution to the deviation between payment/settlement and engineering actual in the key issues of program, is important for owner to effective cost control.With the vigorous implementation of the BQ, it also proposed the specific requirements for the owner's management of project settlement which based on the BQ-based. As an effective way to prevent errors and fraud, improve the use of funds efficienctly, internal control has a broad extension in the development. After the in-depth analysis of pricing system under the payment/settlement, the paper searched various risk factors which affect the price paid and the actual deviation in the phrase of the advances, progress payments and settlement. These risk factors are the main content of the research on the internal control, and also the input part of the internal control mechanisms. For these risk factors, analysis through the theory of the five internal control elements—control environment, risk assessment, control activities, information and communication, supervision, could reach the purpose that owners how to control the whole project efficiently on the payment and settlement activities, to solove the key issue of the paper, and guide the optimization to the project price payment/ settlement.