Research On Engineering Cost Risk Management Of Shantytown Reconstruction Project

According to China’s National Bureau of Statistics,the proportion of construction value added to GDP has remained above 6.85% since 2013 and reached 6.89% in 2022,the data shows that the China’s construction industry remains an important pillar of the national economy domestically.In 2022,the number of shantytown renovation projects planned to start in Shandong Province is about 76000 sets,of which Weifang City has started new shantytown renovation projects with 3581 sets and 1600 sets were basically completed,the number of projects ranked high among the counties and cities in the province.With the continuous and stable development of economy and society,the construction industry has continuously transformed to high-quality development and achieved certain results.The development of the construction industry in cities is closely related to urban renewal,which advocates modernizing cities by means of renovation projects,which is a vital strategy to promote quality urban development.In the concept of urban renewal,the building and growth of shantytown renovation projects can further promote the change of urban renewal,therefore,shantytown renovation is the more concerned part.The shantytown renovation project is characterized by long construction period,many construction subjects,large capital investment and low economic efficiency.Especially in terms of capital investment,shantytown renovation is facing a huge challenge,and the risks faced by engineering cost in the process of shantytown renovation cannot be ignored.In the shantytown renovation project,good cost risk management can be effective in controlling costs,save cost,ensure the accurate use of funds and reduce the loss of funds.At present,although research on risk management is now very advanced,relatively little research has been done on the assessment of construction cost risk management in slum upgrading projects.Risk assessment is at the heart of risk management,and the importance of good risk evaluation is self-evident.On this basis,the engineering cost risk management of shantytown renovation project is studied as follows.The article begins with an analysis of relevant studies on technology cost management,risk management and risk assessment at China and abroad,and develops the concept of basic theory and evaluation model;Secondly,it introduces the theoretical contents closely related to this article,including three parts of project cost management,risk management and engineering cost risk management;Therefore,the entire project construction cycle was divided into five phases(decision making,planning,bidding,construction,and billing)using a literature review and expert survey,in order to identify and select in advance the relevant risk factors that impact the construction costs of shantytown projects,and to develop a system of indicators to assess the technical costs of the project;Then,an engineering cost evaluation model was developed for the shantytown rehabilitation project by combining Network Hierarchical Analysis(ANP)and Fuzzy Comprehensive Evaluation(FCE)methods;After that,the HJW project in Weifang Binhai Economic Development Zone was used as a research case to verify the evaluation index system and evaluation model,and the evaluation grade of the project was obtained by calculation;Finally,relevant measures and suggestions were proposed for the evaluation results of engineering cost of shantytown renovation project.The application of evaluation model combining Network Hierarchical Analysis(ANP)and Fuzzy Comprehensive Evaluation(FCE)enriched the research results of risk evaluation theory of shantytown renovation projects,provides relevant reference for the risk evaluation research of construction projects,and can also be used as the theoretical basis for project cost risk management of projects to ensure the smooth development of shantytown renovation projects.