Cost Analysis And Research Of Hebei Expressway

Along with China's highway development, there has been a rapid rise in its construction cost year after year. Take Hebei Province as an example, the cost of constructing highway in plain areas has increased from about 20 million yuan per kilometer in 1990s to more than 70 million yuan per kilometer in recent years. High cost has seriously affected highway development process, while pushing investors away. To realize the full benefits of limited construction funds, it appears necessary to effectively control the cost of highway construction project at all stages.Based on data of highway construction cost in Hebei province in recent years, this essay aimed to compare by extracting, sorting, and examining project data of the same kind among different years; draw the comparison chart of the change in construction cost per kilometer in plain and hilly area, as well as in main mountain areas; show percentage of change; and compare the cost per kilometer of different projects. At the same time, this essay analysed the uptrend of the annual construction cost and drew comparison chart with reference to highway construction cost data in the three neighboring provinces (i.e. Shanxi, Shandong and Henan). To make analysis more accurate, this paper included data from different geological forms, e.g. different pavement thickness, average interchange spacing, the total length of bridge and culvert. In addition, it also took the advanced road safety facilities, the rising price of project materials, and the increase in other expenses into consideration. The factors above affect highway construction cost. All efforts were being made to find out the exact cause for the rapid rise of highway construction cost in Hebei Province and on the basis of which, this essay would explore scientific method for effective cost management, in order to ensure development of highway construction in a healthy and orderly way.Through the above research and analysis, this essay identified the main factors that influence the rapid rise of highway construction cost in Hebei Province, i.e. the objective factors such as expansion in project quantity, improvement in bridge and culvert ratio, increase in the number of structures, and in main material prices, rise in loan interest rates; and the subjective factors including improper cost control in the design process, inadequate capital control during construction management process, and non-standard tendering/bidding procedure, etc. In the light of the above, the essay put forward management measures to control the rapid rise of highway construction cost in Hebei Province, and made the suggestion to the transportation department that Management Measures of Hebei Province on Road Construction Cost should take effect as soon as possible, which would ensure development of highway construction in a healthy and orderly way.