Abstract:
With ongoing societal and economic development, electronic information has become increasingly valuable and influential. As engineering cost management continues to improve, information technology is now a vital management tool. Traditional approaches to engineering cost management are no longer sufficient for current demands. In today’s era, which emphasizes efficiency, people-oriented management, and sustainable economic growth, electronic information is receiving more attention in engineering cost management. This article discusses the application of electronic information in engineering cost management.
Keywords: Electronic Information, Engineering Cost Management, Application
0. Introduction
The 21st century is marked by rapid development and widespread adoption of computers and information technology. Information management based on IT has become a modern and advanced management approach for enterprises. Recent advancements in software and network technologies related to engineering costs have greatly enhanced information accessibility and utilization, especially with the rise of Internet technology, enabling global information resource sharing. The use of IT in engineering cost management is becoming increasingly prevalent.
1. Engineering Cost
1.1 Definition of Engineering Cost
Engineering cost refers to the total expenses incurred in the execution of a construction project. It serves as a key indicator for assessing investment benefits and plays a crucial role in the quality and safety of engineering projects. Engineering cost management is not merely an economic concern; it is a multidisciplinary field integrating economics, technology, and management. The level of engineering cost directly impacts investment returns and reflects both the work quality and management standards of the construction entity.
1.2 Informationization of Engineering Cost Management
Informationization in engineering cost management involves applying electronic information technology—primarily communication and software technologies—to improve efficiency and reduce expenses. As information technology advances, traditional management methods have become outdated. Informationization is thus an essential component of modern construction management, increasingly important in engineering cost activities.
The Necessity of Informationization in Engineering Cost Management
The growth of information technology makes informationization in engineering cost management inevitable. Currently, computer and network technologies are widely used in enterprise management, introducing many new developments to engineering cost management. As we move further into the information age, engineering cost management and computer technology are becoming inseparable, driving significant changes in the field. Developed Western countries have already implemented computer network technology throughout engineering cost management—from design to execution and maintenance—achieving fast, paperless processes. Engineering cost management software has also facilitated more scientific and rational cost analysis.
The evolution of management models demands informationization in engineering cost management. The introduction of new concepts (such as Six Sigma, proposed by former GE CEO Welch) has increased market demand for information technology in cost management. As a result, construction and improvement of informationized engineering cost management have become necessary.
Reducing engineering costs is a fundamental requirement that makes informationization essential. The ultimate goal is to minimize costs and enhance quality. Informationization supports this by enabling rational control over material prices, which account for approximately 60% of construction costs and are continuously rising. Thus, managing material prices is vital for reducing overall engineering costs.
3. Challenges in Informationization of Engineering Cost Management
With ongoing reform, engineering cost management mechanisms shaped by market competition are improving, and the field is adapting to market demands. Years of effort have established a basic framework for informationization in engineering cost management. Sophisticated engineering cost calculation software is now available, and the number of websites offering information and services for cost management is steadily increasing. While there is a solid foundation for informationization, several issues remain.
Currently, management of engineering cost information resources lacks systematic planning. There is no unified approach for collection, coding, and classification of engineering cost information. Information systems and resource ownership remain fragmented and isolated, preventing effective sharing. Many managers rely on paper-based information and overlook deeper information processing.
Methods for collecting and processing engineering cost information are outdated. Collection technologies are obsolete, classification standards are inconsistent, and data formats and access methods vary, making remote transmission and processing difficult. The quality of information resources is hard to improve, and information maintenance and updates are slow, failing to meet market needs and lagging behind societal requirements.
The construction of information networks also requires improvement. Most engineering cost networks are built by quota stations or consulting companies. Website content mainly includes quota publications, price information, document forwarding, bidding information, and company introductions. However, these sites often simply display cost information without organizing or analyzing it.
4. Implementation and Limitations of Informationization in Engineering Cost Management
Although information technology adoption in China began relatively late, and engineering cost management informationization was further delayed, recent years have seen the establishment of a basic framework. Engineering cost calculation software has become more advanced, and websites offering information and services are increasingly common. While the foundation is set, several challenges persist.
4.1 Implementation of Informationization in Engineering Cost Management
First, informationization streamlines the engineering cost management process. By adopting management methods and computer technology, concise and efficient processes can be developed, reducing labor, material, and financial costs. For example, centralizing procurement of raw materials can lower material expenses, and scientific management can eliminate unnecessary steps, reducing labor costs.
Second, informationization improves engineering design. Information technology allows simulation of construction plans, early detection of issues, and better preparation. Areas prone to resource waste can be identified in advance, enabling targeted improvements and cost reduction. Establishing a feedback mechanism through IT ensures timely adjustments in management methods and processes to enhance safety and reduce costs.
Finally, informationization aids cost verification. Quality inspection requires accurate calculation and simulation of costs, which can be facilitated by information technology.
4.2 Limitations of Informationization in Engineering Cost Management
Management of engineering cost information resources remains unsystematic. Information is often arranged only by date or name, making it difficult to identify hidden issues in project costs. From a holistic perspective, costs could be further reduced through interdepartmental cooperation and resource optimization, but many managers still rely on paper-based information and neglect deeper processing.
Collection and processing methods are outdated, focusing mainly on project data and market prices. Problems such as inconsistent classification standards, delayed updates, incompatible formats, and inconsistent access hinder remote processing and information quality improvement. Maintenance and updates are slow, failing to meet the needs of the information market.
The information network infrastructure is incomplete. Many engineering cost-related websites are poorly designed, cluttered with excessive advertising, and dominated by reposted content rather than original material. Some sites repost articles from others, with repost rates over 90%, undermining their service function. Furthermore, some professional websites sacrifice quality for higher click-through rates, publishing irrelevant content and losing focus on engineering cost management.
5. Conclusion
As electronic information technology continues to advance, its application in engineering cost management will become increasingly significant. These technologies not only help reduce engineering costs and save resources, but also enhance efficiency and guarantee quality. The prospects for application are broad. With deeper understanding and accumulated experience, information technology’s role in engineering cost management will expand. As China has joined the WTO and the construction market opens up, fully leveraging information technology will help the country integrate with the international construction market and strengthen its competitiveness.
References:
- Report on the Role of Informationization in China’s Industry – AI_ST-SC_1_. IT Manager World. 2008 (09)
- AI_T_SC_1_National Informationization Leadership Group National Information Technology Development Strategy (2006-2020). 2005, (11)
- AI_T_SC_3_ Enterprise Informatization Standard Working Group of the Ministry of Information Industry Enterprise Information Technology Specification (Draft for Comments). 2004 (11)
- AI_T_SC_4_National Development and Reform Commission, Ministry of Information Industry Special Plan for Information Technology Application during the Eleventh Five Year Plan Period (Draft for Comments). 2005 (11)
Source: Star Paper Network
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