Research On Cost Management Of Renovation Project Using Government Funds

As time goes by, most of the office buildings of state organs and institutions have been built for many years, buildings condition gradually become poor, the equipment and facilities gradually become old, the office buildings have entered the maintenance of normal cycle. In addition, with every unit change and improve the requirements for working conditions and environment, the demand for office and accessory buildings renovation has also grow, the annual quantity of renovation project using government funds is more and more big. Renovation project using government funds is made up of state funding support, so renovation procurement needs to execute the Law of Government Procurement of PRC and Government Procurement Implementation Regulations of the PRC, being more restrictive than the general restoration project in the budget, procurement, implementation, etc. At the same time, because restoration project using government funds has the characteristics of small quantities, changeful project site, fragmented construction organization, diverse engineering content, more unpredictable factors and so on, making restoration project using government funds is complicated and less controllable, increasing the cost management difficult.In recent years, in the corruption case of state organs and institutions, many cases will involve the construction engineering field, restoration project using government funds became the hardest-hit areas for corruption. This is precisely the restoration project using government funds is short of perfect the management system and scientific cost management system in our country. Therefore, the state council promulgated "Opinions of the State Council on strengthening the work of auditing" on October27,2014, from promote the safe and efficient use of public funds, safeguard national economic security, in accordance with the law shall be subject to the supervision of the audit and strengthen the rectification supervise, for using of audit supervision system to strengthen the budget management and execution, promote the reasonable allocation and efficient use of financial capital, facilitate saving and standardize the management of fiscal fund. Thus it can be seen, establishing the cost management mode for restoration project using government funds can provide theoretical guidance for the cultivation of clean government in our country’s state organs and institutions. In reality, after years of exploration and practice, for cost management of all kinds of construction project, it already has some relatively mature management methods from the initial decision phase, preliminary design, construction drawing design, project bidding, construction implementation to settlement after completion. But, for cost management of restoration project, relatively mature management methods almost nowhere to be found compared with the construction project. There is no experience can be in accordance with cost management of restoration project using government funds. Therefore, drawing lessons from the relatively mature cost management method of domestic construction project, building up scientific cost management model of restoration project using government funds has important practical significance.First, with literature research method, comparative research method, case analysis method and so on, the thesis introduces the concept, implementation process and characteristic of restoration project using government funds, analyzes the definition, principles and methods about cost management of restoration project using government funds, establishes the theoretical framework for cost management of restoration project using government funds, lays a theoretical foundation for research on cost management of renovation project using government funds.Second, on the basis of summarizing the present situation about cost management of restoration project using government funds, the thesis comprehensively studies the cost management of prophase, design, procurement, construction and settlement of restoration project using government funds, summarizes the main problems of each stage, draws lessons from the relatively mature cost management method of domestic construction project, puts forward the corresponding improvement suggestions.Finally, combining with a real case, the suggestions for improvement are analyzed in practical application at each stage, and discussed in detail the specific implementation methods. It has a certain practical significance for improving the level of cost management of restoration project using government funds, and promoting the cost management of renovation project using government funds scientific, standardized and modal.