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Reflections on Owner’s Practice of Project Cost Control in the Construction of Qinshan Phase Ⅲ Nuclear Power Project

Author: LinHong
Tutor: HuPengShan；ChenZuo
School: Shanghai Jiaotong University
Course: Nuclear and Nuclear Engineering
Keywords: Nuclear Power Project Cost Control Owner
CLC: TU723.3
Type: Master's thesis
Year: 2007
Downloads: 228
Quote: 0
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Abstract

The subject for the measurement and control of project cost is a branch of project economics in the development of modern management science, with its focus on the theory, approaches and rules in cost measurement and control of a project for construction or a unit work through the whole process of its preparatory, implementation and conclusion stages. The idea of Whole Process Cost Management (WPCM) emerged in China in the late 1980s and early 1990s, which requires the whole process management of cost measurement and control from the very planning / approval stage to the completion of the project.During the construction of the Qinshan Phase III Nuclear Power Project (hereinafter“the Project”), the Owner achieved a favorable result through the establishment of a series of procedures for an effective control in selection of contracting models, tender invitation/assessment, design review, contract management, settlement, etc. The Unit 1 and Unit 2 of the Project were respectively put into commercial operation 43 days and 112 days ahead of schedule; the final total construction cost of the Project is RMB 2.5 billon (about 10.6%) less than the budgetary estimate approved by the state. The Owner also accumulated much management experience conducive to cost control for the construction of nuclear power projects.With the transition from the construction period to the operation period, the Owner of the Project has started the gradual maintenance of existing buildings/structures and construction of some additional auxiliary / matching facilities, and adjusted its organizational structure from construction to operation. For a better protection of its interests, the Owner has accordingly updated, revised and prepared a series of procedures in conformance with relevant codes, standards and regulations, with the absorption of practical experience from the construction period,.This paper starts in Chapter I with a general review of the development in the theory and approaches on project cost management, summarizes in Chapter II the practice and experience in the WPCM of the Project for construction, made some new exploration in Chapter III for cost control during the operational period of nuclear power projects, and finally proposed, with the observation of some existing problems, measures for further diminishment of operation cost of the Project. This paper can be referred for the cost process control and contract management of new nuclear power projects.

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