ZHGY Group Pipe Installation Project Budget Control Research

In recent years, many companies in our country are continuing to explore and to put into practice about budgetary control. There are a considerable amount of national and international literatures implying that the academics are continuously researching on improving the budget control of companies, and trying to make budget control express its potential and ability in the companies. But in some construction companies, very few literatures are based on engineering projects. Many enterprises pay more attention to the beginning, but less attention to the end in the budget control process or just follow the procedure of a standard budget control, which makes the actual control and supervision process lose its role in monitoring the budget. Therefore this article used ZHGY cooperation as the research background, investigating on problems within the formation, examination, verification and post judgment of budget control; through improvement of management system and management tool, expressing the potential and ability of budget control in the engineering project.In this thesis, the research results from national and international academics about budget management were reviewed. The framework, the research methods as well as the novel findings of this thesis were then described. Meanwhile this thesis also elaborated the theory of project budget, the content of budget its difficulty, the status of implementation of the project budget. Based on theoretical analysis, this article has taken the real situation of ZHGY cooperation into consideration, explained and analysis the budget control system of engineering projects. By analyzing ZHGY cooperation current budget organizational structure, content, compilation process and budget supervision, this thesis indicates problems existing in the cooperation budget management system and budget control flabby.Therefore, by searching numerous literatures, and correlating with the actual status of the company, the author suggests the company use Earned Value Method for real-time monitoring of the project. Earned Value Method needs to calculate the actual expenditure value the value of the program and budget, and earned value of the three basic parameters; and combines the project progress and cost to calculate a difference between project implementation and project expectation. In order to improve the management team, the budget control management committee should be established; the workers who are involved in the budget analysis, constructions, post audit and examinations should be managed properly as a team; the working content for each department should be clarified; last but not least, the responsibility center should be created for each department. For post audit evaluation, reward and penalty should apply to each responsibility center. By applying a series of improvements, the employee will be more focused on their work which in turn will enhance the quality of the projects.