Application Of Value Engineering In Project Cost Management Of A Geological Exploration Institute

Geological exploration is an important cornerstone of China’s economic construction.Since the reform of geological exploration industry,some geological exploration units have been transformed from public institutions to enterprises,but due to the restriction of the institution system,the long-term geological exploration unit of market-oriented reform process is very slow,most of the geological exploration units have failed to establish and improve the cost management system,not only seriously affected the geological exploration project,It also hinders the long-term development of geological prospecting units.In this context,geological prospecting units should strengthen the cost management,establish and perfect the scientific cost management system,standardize the cost management responsibility system,optimize the cost management organization process,so as to achieve the goal that requirements of improving the economic benefits of units and promoting the sustainable development of the industry.A Geological Exploration Institute,as a provincial key unit,undertakes geological exploration projects in the southern part of the province,which has great development prospects.However,since the reform of geological exploration industry,it has been too conservative,fixed in its own ways,and failed to actively seek change,leading to the project cost management system is not perfect,the cost management work also has great defects,which poses a certain threat to the positive and healthy development of the unit.Based on the research results of experts and scholars at home and abroad,referring to the relevant theories of value engineering,combined with the actual construction procedures and characteristics of geological exploration projects,this paper started from the actual situation of the current project cost management work of A Geological Exploration Institute.From the four stages of cost budget,cost control,cost accounting,final account and performance appraisal,the paper analyzes the disadvantages of the project cost management of A Geological Exploration Institute,and it introduces Value Engineering method,combined with the comprehensive cost management principle,the whole life cycle cost minimization principle,the principles of dynamic cost management and cost control management project cost management plan is designed.So as to achieve all-round,full link project cost management,and to make clear the cost management objects and objectives of A Geological Exploration Institute in each project link,injected fresh ideas into its original project cost management framework,and targeted put forward the corresponding improvement measures and strategies,improved the project cost management framework structure of A Geological Exploration Institute,and implemented the scheme into specific projects based on the X project being implemented by A Geological Exploration Institute,analyzed the application effect and verify the operability of practice,so as to achieve a series of objectives that to improve the unit project cost management effect,achieve project cost control,promote the unit to enhance economic benefits,and achieve the benign development of enterprises.At the same time,it also provides reference for the units and enterprises in the same situation in geological prospecting industry.