Application of Construction Phase Process Cost Management in Nuclear Power Projects

Abstract

For a very long time, the cost recovery period of nuclear electric power generation kept being too long due to its large construction investment and lengthy construction period, under the condition of relatively fixed nuclear electric power price, and the situation of exceeding the budget occurred occasionally. The nuclear power industry’s competition has increased as a result of the progressive deepening of the nuclear power formation mechanism reform on grid price. As a result, the relevant businesses must raise their technological standards and ensure their competitive advantage by cutting costs. Because it is based on the VVER nuclear power unit construction project, named AST and it beginning in 2021.Which it differs from the earlier completion settlement model for nuclear power construction projects by adopting Total Budget Management. The economic performance of the construction process is evaluated using quota design and quota engineering change in accordance with design change and material change in the process. This strengthens the relationship between engineering design, material standard requirements, and overall investment control and, in the end, realizes the combination of rational progress payment and reduced cost risk. Through the analysis of actual project management, this paper proposes recommended measures for the standardization of nuclear power construction and the cost management of nuclear power construction. At the same time, the necessity of building a standardized information system for the cost management of nuclear power construction is also elaborated. On the one hand, Total Budget Management, based on mastering static investment data, can help investors minimize dynamic investment expenses and improve the economy of project building. On the other hand, the establishment of the project construction database in nuclear electric power projects is made possible by the long-term monitoring of the project cost during the construction period. By using data analysis, it is also possible to estimate the project’s profitability, which will help nuclear electric power generation become more profitable and competitive. The examination of many construction-related challenges and the design of practical solutions in this paper are based on the construction phase cost management, which is an important stage in total budget management.