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stment ? Negotiation and contracting ? Design ? Building ? Putting in service III. Operational An other reputable specialist Ronald Mc Caffer (1995) presents the life cycle of the project using the following scheme: PHASE ACTIVITY ACTIVITIES SUCCESSION Initiation Product identification Definition of the need Preliminary Feasibility studies, Decision to realize the study strategic and financial planning General design Design and costs estimation Decision to carry out the project Detailed design Detailed design Starting auction organization or negotiations Contracting Negotiation or auction – Conclusion of contracts offering and contracting Building Building Final reception of the works Finalizing Works finalizing and Designed parameters final reception achievement Operation and Operation and Maintenance Maintenance 4 Genesis of a construction project prises the following steps: A. Definition After the owner (investor, author, client, beneficiary) has identified the need to realize the construction, he should define requirements and budgetary constraints. Defining the project includes establishing its general characteristics such as: location, size, configuration, performance criteria, equipment needed etc.. In this phase the general project is carried out of the future objective, this work being the responsibility of the owner, but he may use a designer. Figure 1. Genesis of a construction project Source: Mc Caffer, Harris, 1995 B. Design This phase consists in carrying out previous feasibility studies and feasibility studies, ending, should the beneficiary take the decision to realize the project, with the technical drafting. In practice, if certain types of contractual arrangements, design, supply and construction overlap, the construction being realized as the design progresses. The design can be achieved by the beneficiary, but, as in most cases, 5 he is not a specialist in the field, a specialized designer or consultants are needed (for previous feasibility studies and feasibility studies). C. Contracting This phase consists in concluding the construction contract. D. Supply and Construction Supply refers to ordering and receiving equipment and key materials needed for the project, particularly those having long intervals between order’s launching and receipt. Supply may be done by the general contractor, by the customer or by a specialized pany hired by the customer. Construction is the process of laying materials and equipment. This involves providing human resources, equipment, materials and overseeing the pletion of work. E. Maintenance and repairing After putting in operation and designed parameters achievement the construction may require execution maintenance and repairing works. To achieve them, one can use the services of the initial builder (surely during the warranty period) or those of another construction firm, if the beneficiary does not have a specialized department. F. Demolition or conversion After expiration of the normal life of the objective or even earlier, if economic or technological reasons requires it, an objective may be demolished or altered. This requires the services of a construction pany. CONCLUSIONS For a project to be built respecting the budget and implementation deadlines, a professional management of operations carried out on site, is needed. The technical plexity, the importance of works realization on due time, constraints related to resources and substantial costs impose thorough planning, programming and control The construction process is not a self adjusting mechanism, but it requires coordinated intervention of experts for the activities to be conducted according to the plans. The construction realization can be deeply affected by events that are difficult or impossible to predict. In such changing circumstances, cost and duration are constantly altering and can suddenly deteriorate. An effective management is not only desirable, but is needed in order to achieve a satisfactory final result. Regardless of the contractual arrangement chosen for the construction project’ realization, the safest way to achieve objectives is to apply a project management system. 6 Two Points on the Cost Management of Engineering Projects AbstractCost management of engineering projects is an everlasting topic for construction enterprises. How to manage the cost and what the performance of the cost management is directly relevant to the economic benefits, survival and development of the construction enterprises. To reduce the engineering cost, we should minimize the material and labor consumption through the whole process and in every aspect of the construction. And the root way to enhance the market petitive strength of the construction enterprise is to control all the consumptions influencing the engineering cost within the planned scope. The article makes a primary probe into the management of the cost from two aspects:the a11sided management and the whole lifespan cycle management of the Engineering cost. Index TermsConstruction engineering, project management and cost contro1. I. INTRODUCTION Engineering project is the cost center of the construction enterprises as well as the main source of the profits. When the industry petition is being fiercer and the profit making space is being smaller, in this situation, the most important thing for a construction enterprise to enhance the market petitive strength is minimizing the