[Summary].The cost of building decoration construction projects reflects the work quality and management level of construction enterprises in all aspects of production activities, it is the concentrated embodiment of the economic effect of all the work of construction enterprises, and is a comprehensive index to assess the operation and management effect of enterprises. Therefore, it is particularly important to control the cost of the project, and we have the following views on the control principles and methods of the cost of the building decoration project.
First, an overview of the cost of building decoration construction projects
The project cost of the building decoration construction project refers to the monetary form of the transfer value of the means of production consumed in the process of the building decoration construction project and the value created by the laborers for their labor, and is the sum of all the expenses incurred in the construction of the construction project, including the main materials, auxiliary materials, structural parts, amortization or leasing fees of turnover materials, construction machinery shift fees or leasing fees, wages and bonuses paid to workers and all expenses incurred by the project management department for the organization and management of the construction of the project.
1.Classification of the cost of building decoration construction projects.
1) According to the role in cost management, it can be divided into three categories: budget cost, planned cost and actual cost.
2) According to the relationship between production cost and engineering quantity, it can be divided into two categories: fixed cost and variable cost.
3) According to the cost attribute of the project, it can be divided into four categories: production cost, quality cost, construction cost and unforeseen cost.
2.The composition of the cost of the building decoration construction project.
1) Direct costs.
Direct costs refer to the expenses incurred in the construction process that constitute the project entity or contribute to the formation of the project, including labor costs, material costs, machinery use costs and other direct costs.
2) Indirect costs.
Indirect costs refer to all the construction expenses incurred by each project manager department to organize and manage the construction of the project.
Second, the cost control of building decoration construction projects
1.The concept of cost control.
Cost control refers to the process of forming the project cost, according to the pre-formulated cost target, the human resources, material resources and expenses consumed in production and operation, guide, supervise, regulate and restrict, timely correct the deviation that will occur and have occurred, control the production cost within the scope of the planned cost, and ensure the realization of the cost target.
Theoretically speaking, cost control is a kind of control of economic behavior, and it is a behavior of the cost control subject to control the controlled object.
2.Procedures for cost control.
1) Ex-ante cost control.
Ex-ante cost control refers to planning the factors affecting the project cost in advance, speculating on the future cost level, and making choices and arrangements for future cost control actions before the project cost occurs. Ex-ante cost control mainly includes cost, cost decision-making, cost planning and other links. In order to better control costs, the relevant economic indicators and expense plans in the cost plan should be broken down layer by layer and implemented to each department, team or person. Ex-ante cost control is the basis for active cost control and the manifestation of the initiative of cost management in advance.
2) Cost control in the process.
In the process of project implementation, in accordance with the formulated target cost and cost plan, use certain methods, and take various measures to improve labor productivity and reduce various consumption as much as possible, so that the actual cost is lower than the predetermined target and as low as possible. The in-process control of costs mainly includes the implementation of cost control for each work according to the predetermined plan, monitoring, collecting, feedback, analyzing, and diagnosing the actual costs incurred, and adjusting the cost control measures for the next link. In-process cost control is the key stage of the success or failure of cost management.
3) Ex-post cost control.
After-the-fact cost control is the accounting, analysis and assessment of the project cost after the project cost occurs, which does not change the project cost that has been formed, but plays a role in promoting the cost control in advance and during the event, especially for the enterprise to summarize the lessons of cost management, establish the enterprise quota, and guide the cost control of similar projects in the future has positive and far-reaching significance.
3.The principle of cost control.
1) The principle of combining open source and throttling.
Through saving, the cost can be effectively controlled, to achieve the purpose of improving economic efficiency, therefore, saving is a basic principle of cost control. However, saving is not the only way to control costs, practice has proved that doing a good job in changing visas and claims can effectively increase costs and income, thereby improving the economic efficiency of enterprises. Therefore, in the process of project cost control, equal attention should be paid to cost reduction and open source to achieve the cost control goal.
2) The principle of total cost control.
Comprehensive control means full participation in cost control, the whole process control of project costs, and the comprehensive control of cost elements.
Cost control is a systematic project, we must widely mobilize the masses, enhance the cost awareness of all employees, realize the participation of all employees, and implement the cost management responsibility system. The cost is closely linked with each employee, and each person bears a responsibility and enjoys a benefit, so that the employees can consciously increase production and save, tap potential and reduce consumption, and participate in their respective responsibility cost accounting. Strict prevention of cost control is everyone's responsibility, but everyone doesn't care. The whole process control of project cost requires the process of project cost formation as the control object, and the cost control work should be carried out continuously with the progress of each stage of project construction preparation, construction, completion, etc., which can not be neglected, nor can it be tight and loose, and the cost of the construction project should be placed under effective control from beginning to end.
3) The principle of dynamic control.
The construction project has the characteristics of one-time, and there are many factors that affect the cost of the construction project, such as the internal management of the current material overconsumption, the delay of the construction period, the unreasonable construction plan, the unreasonable construction organization, etc., will affect the cost of the project, at the same time, the relevant factors outside the system such as inflation, traffic conditions, design document changes, etc. will also affect the cost of the project.
4) The principle of management by objectives.
Objective management is a method of implementing the plan, with a clear goal, it is possible to check and correct the target in the implementation process. The content of objective management includes: the setting and decomposition of objectives, the responsibility for objectives in place and implementation, the inspection of the implementation results of objectives, the evaluation of objectives and the revision of objectives, and the formation of a planning, implementation, inspection and processing cycle of objective management, that is, PDCA cycle.
4.Methods of cost control.
With the popularization and application of cost management, the research on cost control methods has also achieved a lot of results, and the main cost control methods are:
1) Cost analysis table method.
The cost analysis table method is one of the main financial methods for cost control. Cost analysis tables include cost**, weekly, monthly, analysis, and cost** reports. It is required to be accurate, timely, simple and clear, and can be filled in daily, weekly, and monthly as needed.
2) Time, schedule, cost method.
The construction process of the project includes three time periods: the beginning stage of construction, the comprehensive construction stage and the closing stage, and the characteristics of each stage are different, and the cost per unit time and the amount of work completed per unit time have a linear relationship with the time. The cost per unit time is expressed as a cumulative number, and its relationship with time forms an elongated S-shaped curve, and 3) cost control chart method.
This method introduces the basic principles of the quality control chart method in the Total Quality Management method for the daily control of costs in the construction process. In the construction process, the deviation of the cost is: actual deviation, planning deviation and target deviation, which is:
Actual Deviation = Actual Cost - Budgeted Cost;
Planning deviation = budget cost - planned cost;
Target deviation = actual cost - planned cost.
4) Cost plan review method.
Network planning technology is based on the network model, mainly used for planning and control, so it is called network planning technology. In China, the network planning method is mainly used for schedule control, and even when the network plan is optimized, it is only used to find the least rush cost. In fact, in the daily cost control combined with the network plan for cost control, can give full play to the advantages of the network planning method, from the network diagram can clearly see the comparison between the planned progress and the actual progress, the planned cost and the actual cost, and can also clearly see the direction of the control progress and control cost.
III. Conclusion
The building decoration industry is an industry with broad market prospects with the enhancement of China's comprehensive national strength and the further improvement of people's cultural living standards. The purpose of our research on the cost control method of building decoration engineering projects is to enable people to establish a cost control system for building decoration construction projects and standardize cost control behaviors, realize effective cost management ideas, help building decoration enterprises improve the cost management mechanism, and provide reference for them to carry out scientific, standardized and effective control activities.