1. What is a government-invested construction project?
Government investment refers to the use of budgetary funds to carry out fixed asset investment and construction activities in China, including new construction, expansion, reconstruction, technological transformation, etc.
2. What is the classification of government-invested construction projects?
(1) Classification according to the characteristics of profits
Government-invested construction projects can be classified as for-profit projects and non-profit projects. Profitable construction projects are those that have a certain amount of revenue, such as power equipment, railway transportation, and port engineering. Non-profit government investment projects mainly refer to public welfare projects, such as hospitals at all levels, office spaces of educational and administrative units, people's parks, etc. These construction projects will not have a direct economic effect, but they can improve people's living standards and promote the development of cities.
(2) Classification according to the purpose of the construction project
Government investment projects can be classified as basic and public welfare projects. Among them, basic engineering projects refer to pillar industries or livelihood projects with large initial investment and long return on investment period, which enterprises or individuals are unable to undertake alone and need the assistance of government departments. Public welfare projects refer to facilities such as humanities education, cultural communication, sports and fitness, etc., and these major projects have typical public welfare effects, and their financial expenditures are generally allocated by the government alone.
(3) In accordance with the source of funds for the construction project
The sources of funding for government-invested construction projects can be divided into: government financial funds, treasury bond investment projects, bank loan projects and international aid projects. In addition, it also includes public-private partnership projects between the government and the enterprise.
3. At present, which places have issued cost control measures related to government investment and construction projects?
Some of the places that have issued measures for the cost control of government investment and construction projects are as follows:
Beijing Municipality has promulgated the "Several Provisions of the Beijing Municipal Development and Reform Commission and the Beijing Municipal Bureau of Finance on Printing and Distributing the Cost Control of Municipal Government Investment and Construction Projects (Trial)" (Jing Fa Gai [2019] No. 990).
The Management Committee of Hebei Xiong'an New Area issued the "Interim Measures for the Management of Cost Control of Government Investment Projects in Xiong'an New Area (Xiong'an Zheng Zi [2020] No. 40).
Zhuzhou City, Hunan Province has issued the "Interim Measures for the Cost Control and Management of Investment Projects of Zhuzhou Municipal Government" (Zhu Zheng Ban Fa [2021] No. 17).
4. What is the need for cost control of government investment and construction projects?
(1) Optimal allocation of resources
Through strict control of costs, it can ensure that government investment and construction projects are carried out within the budget and avoid waste and abuse of funds. This helps to achieve an optimal allocation of resources so that limited government funds can be used to the maximum effect.
(2) Improve investment efficiency
Cost control can help the government better plan and manage investment and construction projects, and ensure that the economic and social benefits of the project are maximized. Through the fine management of costs, project costs can be effectively reduced, return on investment can be improved, and the financial strength of the government can be enhanced.
(3) Safeguard the standardization of expenditures
Strict cost control can ensure that the government's investment and construction project expenditure is more standardized. Through the establishment of a sound cost management system and supervision mechanism, the use of project funds can be effectively supervised and the misappropriation and abuse of funds can be prevented.
(4) Promote social stability
Government-invested construction projects often involve infrastructure construction, livelihood projects and other fields, and the smooth progress of these projects is of great significance to social stability. Through cost control, the quality and progress of the project can be ensured, and the project delay or substandard quality caused by financial problems can be avoided, so as to maintain social stability and people's stability.
(5) Promote sustainable development
Cost control helps to promote the sustainable development of government investment and construction projects. Through reasonable control of costs, the project can be guided to pay attention to environmental protection and resource conservation in all aspects of planning, design, construction, etc., and promote the coordinated development of economy and environment.
5. What is the main content of cost control of government-invested construction projects?
(1) Project budget estimation (budget) management
(2) Project bidding and construction management
(3) Management of project construction standards
(4) Project budget performance management and investment review
(5) Project fund payment and final account management
6. What are the key aspects of the performance evaluation of cost control of government investment and construction projects?
(1) Conduct performance evaluation of investment decisions, and the evaluation indicators may focus on investment decisions (goal setting, decision-making process, task implementation, fund allocation, etc.), policy implementation (planning, process control, management system, etc.), and expected performance of investment decisions (expected output, social benefits, economic benefits, sustainability, etc.).
(2) For the evaluation of the cost control performance of the whole process of project implementation, the evaluation indicators can focus on the investment cost, investment cost process control and investment target achievement.
(3) The performance evaluation of investment effects, focusing on the relevance of policy objectives, the efficiency, effectiveness, and fairness of investment policy implementation.
7. What are the key aspects of performance evaluation of cost control of transportation facility construction projects?
(A) according to the municipal government investment and construction projects in the whole process or the key links in the whole cycle, the feasibility study link, budget estimation link, bidding and list link, implementation link, settlement link, final account approval link cost control and evaluation of the situation, summarize experience, find problems, determine the main factors affecting cost control decision-making, focus on the evaluation of the final accounts of the project estimates and the reasons for the final accounts, the reasons for the pending accounts of the project, The cost control performance of the project is put into use, which provides a basis and method for further cost control.
(2) Focus on the transportation facilities construction project, there are major design changes, construction changes, over-estimates, over-construction projects, "one meeting, three letters" projects, as well as routine projects that strictly follow the cost control system, and compare and analyze the differences in cost control performance of different types of projects.
(3) Improve and improve the performance evaluation index system for cost control of Beijing municipal government investment and construction projects (2020 edition), and evaluate the cost control performance of transportation facility construction projects from the data obtained from questionnaire surveys and field research, combined with the historical data of the Municipal Development and Reform Commission, the Municipal Transportation Commission and the Municipal Finance Bureau, and obtain evaluation conclusions for relevant decision-making.
8. What are the key aspects of performance evaluation of cost control of public hospital construction projects?
(1) The decision-making procedures of public hospital construction projects, focusing on the relationship between the urban master plan, the "14th Five-Year Plan", the capital's health development plan and public hospital construction projects, and comprehensively evaluating investment decisions (goal setting, decision-making process, task implementation, fund allocation), policy implementation (planning, process control, management system), and expected performance of investment decisions (expected output, social benefits, economic benefits, and sustainability).
(2) The cost control of public hospital construction projects in the feasibility study link, budget estimation link, bidding and list link, implementation link, settlement link, and final account approval link shall be sorted out and evaluated, experience shall be summarized, problems shall be found, and the main factors affecting cost control decisions shall be determined, and the deviation and reasons for the estimated and final accounts of the projects that have been settled, the reasons for the pending accounts of the projects, and the cost control performance of the projects put into use, so as to provide basis and methods for further cost control.
(3) Focus on the projects with major design changes, construction changes, over-budget estimates, and over-construction periods in public hospital construction projects, the "one meeting and three letters" projects, and the regular projects that strictly follow the cost control system, and compare and analyze the differences in the cost control performance of different types of projects.
(4) Improve and improve the performance evaluation index system for cost control of municipal government-invested construction projects in Beijing (2020 Edition), and evaluate the cost control performance of public hospital construction projects based on the data obtained from questionnaire surveys and field research, combined with the historical data of the Municipal Development and Reform Commission, the Municipal Health Commission, and the Municipal Finance Bureau, and obtain evaluation conclusions for relevant decision-making.
9. What is the main content of the performance analysis of the cost budget of the government's investment and construction projects?
(1) Nuclear costs. That is, through in-depth interviews with project personnel and on-site inspections, the cost budget performance working group has an in-depth understanding of the cost composition of government investment and construction projects, analyzes and sorts out the project costs, eliminates unreasonable expenditures, approves the cost content that should be included but is not included, and analyzes the key factors and trends that affect the cost.
(2) Performance evaluation. That is, from the three dimensions of input cost, output quality and benefit effect of government investment and construction projects, the budget performance analysis index system of government investment and construction projects is established, and the cost-benefit analysis and evaluation of the project is carried out.
(3) Quotas. That is, through the analysis of the cost of government investment and construction projects, summarize and sort out the major categories of project expenditure, establish or optimize the expenditure cost quota system, and calculate the capital investment required by government investment and construction projects.
(4) Adjustment mechanism. That is, combined with the cost quota and cost-benefit analysis index system and analysis results, clarify the fiscal expenditure standards, and establish a reasonable and effective policy guarantee mechanism.
(5) Promote management. That is, to put forward suggestions for optimizing fiscal policies such as planning and design, organizational arrangements, implementation mode, division of responsibilities, supervision and management of fiscal expenditure.