Systematic Management of Highway Project Life Cycle Cost

Transcription

1 Systematic Management of Highway Project Life Cycle Cost CHEN Duiyong, WEN Shaofang School of Traffic and Transportation, Shijiazhuang Tiedao University, P.R.China, Abstract: The cost in each stage of construction project has respective characteristics, and has different status in the whole life cycle. The relation between construction cost and is that as one falls, another rises. Systematic management of highway project life cycle cost is achieving the optimal life cycle cost of construction project from the aspects such as material cost control, equipment cost control, human resources cost control, management cost control, new technology cost control and risk control by analyzing the interrelation between the cost in every stage or of every element of projects life cycle. Keywords: highway construction project, life cycle cost, systematic management 1 Introduction At present, in the traditional management pattern of highway construction project, the policy-making stage, the implementation stage and the operation stage are mutually independent, this kind of pattern has many malpractices. Embark from the long-term social efficiency, it is applied to consider comprehensively supposed stages such as project plan, design, implementation, movement, service, the overall plan considered earlier period construction cost and later period upkeep costs, carry out total life cycle management pattern, establish scientific and the reasonable management mechanism, definite responsibilities of all quarters including government, owner, design, construction, overseeing and so on, and finally, create the secure, convenient, durable and harmonious road journey environment for the user. 2 Present Management Pattern and Existence Question of Highway Project At present, China's highway project management is to the following two modes. 2.1 The government investment based, financing, construction, operation and resource utilization integrated This is a pattern that the government is responsible for capital investment, a corporation responsible for financing, construction, operation, management of the whole process of resource utilization. In the Integrated management model, there is no solution for neither the selective and competitive problems caused by building owners management of construction and operation through market, nor the different segments of life cycle constraints and regulatory issues, which all reduce the efficiency of project comparison, analysis, choice and control. 2.2 Four separate management pattern of investment, construction, operation and supervision In this pattern, he investment based on the government holding company primarily, the construction and the operation participates in the competition separately by several companies, which he government is responsible to supervise. Its problem is that this pattern has not solve the question that responsibility main body carry on the definition, analysis, integration and management from the total life cycle angle, has not solved the integrity of entire system administration and the consistency of entire process management, which weaken the inner link of construction, operation, and resources use. The two kinds of management pattern above causes mutual separation among the owner s development management in basic construction plan stage, the project construction management in implementation 284

2 stage and the property operations management in operation stage, and lead to the lack of competitiveness in managers choice, all o which, of course, has caused many malpractices as the main problems include: Cause disjunction between the engineering construction s investment, progress, quality objectives and the operation cost and the functional goal, as a result of all above, user demand policy-making stage start to deviate the definition, the knowledge and the experience mastered by project parties involved cannot realize the service well for the total life cycle goal, the task at different stages can not be converged well, the interface between different tasks is difficult to organize and manage effectively, the information produced in different period of total life cycle cannot be shared, it is impossible for owner to use the competition enhancement managerial effectiveness, and cannot dodges the risk through keep in balance mutually. Along with the rapid development of management concept, management theory, management practice and information technology, in order to speed up the development of our domestic road transport, it must attach much importance to the highway project management level and efficiency, seriously study these existing questions and explore solution. 3 Engineering Project Life Cycle Management An engineering project's life cycle management involves to entire process, omni-directional and the entire system of the project, and divides into two management levels according to the different parties content and focus in the project management. The first level is the owner project management, it is a comprehensive management of the project construction and operation carried out by owner, which throughout the project and covers all projects. Management content is the whole project process from the project to the end, including project planning, project construction investment control, schedule control, quality control, contract management and project production operations. Throughout of the whole project management system, the owner project management is always at the core. The second level is the implementation party project management, a kind of the local management of the project, for it is the certain part of the project work signed in a bid by the design unit, construction units, supply units and operating units, which are entrusted by the owner. Highway project life cycle is to consider the highway project as a whole, and the whole process of the project includes: project planning phase (feasibility study), project implementation phase (design, construction and final acceptance), and operational management phase (operational readiness and operational use). The value of construction projects is achieved in the operation after completion. 4 Highway Engineering Project Life Cycle Cost Based on the perspective of society as a whole, construction project life cycle cost includes all the costs in the construction project life cycle (from conception, decision making, design, construction, use, maintenance, renovation, demolition throughout the life cycle) caused by producers, consumers and the public. The construction project life cycle cost analysis is the evaluation and decision-making on construction project life cycle cost, to improve the economic benefits of construction projects, then to maximize investment benefits. According to cost type, construction cost of the project life cycle composition is as follows. 285

3 construction cost energy cost Construction project life cycle cost capital cost environmental cost energy cost loss cost management cost social cost security cost relocation cost Chart 4-1 Form of construction project life cycle cost 5 Systematization Management of Highway Project Life Cycle 5.1 The idea of life cycle systematization management In the highway project life cycle systematization management, it is mainly to utilize system administration thought, from the aspects of management goal, management task, management organization, management tool and so on, carries on the organic management about, in present management pattern, the relatively separated items of owner development management in basic construction decision-making stage, the owner project construction management in implementation stage and the owner property operations management in operation stage. It requires to establish the systematic management system of owner s development management, construction management and operation management, simultaneously, solve the problem for owners of the main using of the market to select managers, realize the overall functional optimization, overall value promotion and the total life cycle goal of road projects. Fully integrate the project planning, construction, operation and other aspects, so that the project for the final operation functions, creates the maximum economic, social and resources and environmental benefits. 5.2 The content of life cycle systematic management The content of project life cycle systematic management mainly consists of several aspects as target system, task cohesion, functional optimization, expense control and organizational innovation. 1. Target system Target system includes construction goal, operation goal, resources use goal and total life cycle general goals. The construction goal aims at the project quality goal, the schedule goal and the investment control objective emphatically. The operation goal aims at the service grade goal, the operational cost goal and the economic benefits goal emphatically. The resources use goal stresses the integration of extending resources to create an extension of benefits. 286

4 Target system Construction goal operation goal Resources use goal Total life cycle general goal Functional goal Cost goal Time goal Social goal Chart 5-1 target system of systematic construction project life cycle management The life cycle function goal focuses on the unity of project quality and service grade goal, involves the design quality, the construction quality, the operation quality, the use function and so on, pursues optimization of the system s integrated function, technical standard and security guarantees. The life cycle general goals, with great inclusiveness, are integration of above goals, focus on reflecting the unity of the function goal, expense goal, time goal and the social objective emphatically, pursues unification and optimization of total life cycle cost and income. It not only pays great attention to the owner and user's demand, but also stresses social effects of the project. In addition, it manifests overall contribution to society, pursues all quarters satisfaction, environmental coordination, resources intensive, sustainable development realization. 2. Convergence of life cycle tasks The highway project life cycle's duty system, with the intrinsic relation, must attach great importance to the convergence of various duties. It is necessary to properly handle not only the convergence of tasks undertaken by the different main body, but also the convergence of different tasks undertaken by one main body, in which the convergence of plan, design, construction, operation and other tasks should be paid attention to specially. 3. Optimization of life cycle function Highway project life cycle optimization of its function should focus on functional analysis, strive with a lower life-cycle cost, reliably fulfill the life cycle function and enhance the value of life cycle. The value engineering basic expression V=F/C may be used to carry on the analysis of the function optimization, where, V represents the total life cycle value, F represents the total life cycle function, C represents the total life cycle cost. The best time for Functional optimization is decision-making and project implementation phase, and the test and prove of effect is at the operational stage. 4. Cost control of Life-cycle Highway project life cycle cost control has the following meanings: (1) in the stage of investment decision, construction management, operation management and resources use, the project owner and the superintendent should guarantee realization and optimization of the function and expansion of the income, while the total life cycle all-in cost to be reasonable and minimum, thus realizes the unification and the optimization of total life cycle cost and income; (2)it is the control of entire process expense of project, which throughout the entire process of the decision-making, the construction, the operation and the development. According to a circulating executive program for project cost plan, implement, implementation, feedback, correction, revision and then implement, the project costs are controlled in a systemic smallest scope as far as possible; (3) it is to the project omni-directional expense control. To realize expense optimization under the reasonable function, the time and the income condition, thus achieve the project general goals, project superintendent must effectively deal with the relations between cost goal and other goals, such as the relation of function, time, income and so on. 287

5 5. Organizational innovation of Life cycle Organization innovation's key point of road project total life cycle, for owner, is to choose the project management organization under the optimization of total life cycle general goals, to solve the management goal uniformity, the management task connection, and the management organization complementarity, in the different period and in the different project management organizations. For whatever kind of organization management pattern, it should take the owner or the owners of the commonwealth as the main, and chooses a relatively stable the total life cycle system manager or the system administration organized group, to carry on the integrated consideration for the project total life cycle's development, construction, operation management and so on. When the highway construction develops to the certain scale, when the market has had many investors and many managers to choose, the owner or the owners of the commonwealth may determine one independent total life cycle system manager through the market to comprehensively consider the system conformity integrations in the road project total life cycle, also through market to choice different construction manager and operation manager. The owner or the owners of the commonwealth may also directly select different construction manager and the operation manager to establish one total life cycle system administration union together with it, carries on the total life cycle systematization management for the project comprehensively. 6 Conclusion To implement the highway project total life cycle systematization management, a stable management organization should be established to utilize public, unified and information sharing platform, considers comprehensively the total life cycle system, and achieves the general goals of total life cycle management. Author in Brief: CHEN Duiyong, male, lecturer, master, Transportation economy, , cdy0311@sina.com References [1]. Zhao Likun, Chen Liwen. Systematic pattern research of engineering project management level synthesis [J]. Infrastructure Optimization, 2003,24 (5):23~25 (in Chinese) [2]. Wang Liyuan, Chen Yan. Analysis discussion based on total life cycle road cost [J]. Communications Standardization, 2010,11:111~114 (in Chinese) [3]. Lu Ning,Su Chuanchuan. Investment control of project cost of the project life cycle [J],Value Engineering, 2010,29 (10):86~87 (in Chinese) 288