Since the implementation of one country's "one belt, one road" initiative, the major construction enterprises in China have been carrying out "going out" as the development goal, and the number of contracted overseas projects has been increasing year by year, which has led to the fierce investment in overseas projects. At present, most of the overseas contracted projects of China's construction enterprises are concentrated in politically unstable areas such as the Middle East or economically underdeveloped areas such as Africa. The project contracting subject has insufficient funds or unstable budget. For the contractor, if he wants to win the bid successfully under this condition and realize the expected income, in addition to the strong project management ability of the enterprise, he also needs to have strong financial strength. Therefore, the Contractor shall make reasonable planning, reduce the cycle from design, procurement to construction, improve work efficiency as much as possible, reduce construction cost and improve the use efficiency of funds.

1、 Importance of fund management of overseas engineering projects

(1) Strengthen fund management and effectively realize "deleveraging" and "cost reduction". When contractors carry out construction projects abroad, due to the lack of funds of the owner and other factors, the construction enterprises have to advance a large amount of funds for the project, and due to other infrastructure projects undertaken by the construction industry, the payment collection cycle is long, Therefore, the contractor may face huge financial pressure, resulting in high financial leverage and greater financial risks. At the same time, the distribution of overseas projects is relatively scattered, and the project management level is high and low, which increases the capital risk faced by enterprises. In order to enable the uncompleted project to be carried out smoothly, the construction enterprise needs to recover the advance funds in time, collect the project deposit, project receivables and quality assurance deposit of the completed project in time, speed up the return of funds, improve the use efficiency of funds and reduce the financial pressure faced by the enterprise. In addition, construction enterprises should make rational use of commercial credit and delay the payment of accounts payable and notes payable as much as possible, so as to make full use of funds and reduce the cost of other financing methods. In addition, the project management team should have the awareness of increasing revenue and reducing expenditure to avoid change claims or secondary operation. In the process of material procurement, we should do a good job in inquiry, reduce material cost while ensuring material quality, improve fund management system from top to bottom, reduce unreasonable and unnecessary fund expenditure, and do a good job in fund planning.

(2) one belt, one road initiative, is needed to strengthen capital management and improve the comprehensive management level of construction enterprises. The competition of overseas project contracting is fierce. All construction enterprises want to increase profits and expand their business scope by opening up overseas markets. A comprehensive management system with high feasibility. In this system, financial management becomes particularly important, because construction projects are inseparable from funds, so fund management occupies a core position in financial management. Funds run through the whole activity of the construction project, involving the cooperation of multiple units and departments. The effective control of funds not only reflects the management ability of enterprise managers, but also a consideration of the comprehensive strength of the enterprise. Therefore, strengthening the fund management of construction enterprises plays a very important role in the long-term and healthy development of enterprises.

2、 Problems in fund management of overseas engineering projects

（1） The stability of long-term project investment budget is insufficient. Most overseas construction projects are relatively large projects, involving the frequent flow of funds. Due to the different systems at home and abroad, there may be inconsistencies in the calculation of various taxes. Therefore, in order to give full play to the maximum efficiency of funds, it is necessary to plan the fund management and taxation in advance. When the enterprise predicts that the project has capital problems, it should be able to take effective measures in time to fill the capital gap in time, so as to ensure the smooth progress of the project. However, due to the inconsistency of relevant policies in different countries, coupled with overseas government intervention and other factors, the contractor may not know enough about the contracted land, resulting in large differences between the project budget and the actual implementation of the project, resulting in the disconnection between budget and implementation; Even the lack of basic materials leads to the deviation of the final budget, which is quite arbitrary, and the extra budgetary funds occur all the time, which eventually leads to the instability of the capital budget.

（2） Financial regulation and exchange rate instability are common in developing countries. Most of the projects undertaken by engineering contractors are in Africa, Southeast Asia and other places, mostly in developing or underdeveloped areas. Most of the contracting places are weak economic strength, unbalanced balance of payments, imperfect policies related to the financial system, and will also face problems such as foreign exchange control. These factors make it impossible for the surplus funds realized by the project to be directly remitted to the domestic account of the enterprise through the financial system, which makes it difficult for the enterprise to recover the funds and poses a great obstacle to other investment projects of the enterprise. In addition, the final settlement of overseas engineering projects is settled in the local functional currency. The implementation cycle of engineering projects is often long, and the currency exchange rate changes from time to time in this cycle. Exchange rate changes are mostly caused by different factors. Exchange rate changes may cause local inflation and increase construction costs. This will have a negative impact on the financial and foreign exchange control policies, and then affect the normal construction of construction enterprises. Therefore, construction enterprises should prepare exchange rate risk response strategies in advance to reduce losses caused by exchange rate.

（3） The use of funds is inefficient and the safety of capital operation is poor. Most construction enterprises are intensive and labor-intensive enterprises, facing a large number of people and involving many projects. Therefore, they have a large demand for funds, and have high requirements for the liquidity and timeliness of funds. However, through the investigation, it can be found that construction enterprises are facing a common problem, It is to manage the funds so as to improve the use efficiency of funds, which is more prominent for overseas construction enterprises. Generally speaking, overseas construction projects involve a wide range of regions and a long battle line, which often makes the distribution of funds more scattered, which is closely related to the effective control of funds and the safety of funds. This is because the excessive dispersion of funds is not conducive to the enterprise headquarters to have a more comprehensive understanding of the situation of funds, and most overseas construction projects are distributed in developing or underdeveloped countries, the economic level and financial supervision and other relevant policies are not perfect, and the personnel and business level of regulators are uneven, or even collude with each other. In addition, the capitalist system is implemented in foreign countries, which is different from China's socialist system. Foreign banks are generally controlled by private consortia, with weak capital level and low business level. They face great risks. Once there is an operation crisis, it will cause losses to the interests of depositors.

3、 Preventive measures for fund management of overseas engineering projects

（1） Strengthen the comprehensive budget management of funds. Overseas construction enterprises should have the awareness of project budget and pay attention to project budget management. Budget large-scale projects contracted by enterprises and large-scale capital expenditures, clarify the expenditure standards of subdivided funds, and reasonably plan the use of funds. Reduce the expenditure of invalid funds, and the funds outside the budget shall not be spent arbitrarily. In addition to doing a good job in the capital budget, we should also broaden the financing channels of enterprises, raise funds in multiple ways and types, uniformly manage and allocate the raised funds, and effectively improve the turnover efficiency of funds. In addition, enterprises should improve the level of capital budget preparation, have a perfect preparation basis before budget preparation, quantify the budget objectives, and strengthen the evaluation of funds; Secondly, we should manage and control the funds, reduce the expenditure behavior outside the capital budget, timely find the budget deviation during the project implementation, timely feed back the existing problems to the relevant business departments, jointly negotiate measures and conduct synchronous supervision.

（2） Accelerate the capital turnover and improve the efficiency of capital use. The construction enterprise needs a large amount of funds for the project, which lasts a long time and the return of funds is slow. Therefore, it is necessary to recover the project funds advanced or completed in time, effectively strengthen the control of project funds and speed up the efficiency of capital turnover. Overseas construction enterprises can speed up capital turnover in the following ways. The first is to effectively manage the guarantee deposit, give full play to the substitution role of guarantee deposit, and reduce the cost of capital occupied by guarantee deposit. Secondly, construction enterprises should recover all kinds of project funds in time, mainly including project advance payment, project progress settlement payment, provisional sum, retention money, claim money, etc.

（3）one belt, one road initiative is being strengthened to strengthen the risk management of project funds. The number of overseas projects contracted by our construction enterprises has been increasing year by year, and the construction sites are mostly concentrated in developing or underdeveloped areas. The economies of these countries are relatively backward, and there are risks such as financial crisis, political instability and policy changes. These factors will lead to exchange rate fluctuations, cause the depreciation of funds, and restrict the free circulation of funds. Therefore, when carrying out projects abroad, construction enterprises should have a high risk awareness, pay high attention to the social, economic and political environment of the project contracting site, and establish an early warning mechanism in advance for the risks caused by various environmental changes, so as to effectively ensure the safety of overseas funds and avoid the loss of funds. Therefore, the construction enterprise can take the following measures: first, reduce the holding of cash on hand and reduce the frequency of cash use. In material procurement, the payment shall be made in the form of check or bill of exchange as much as possible, and the project funds shall be uniformly deposited in the Chinese banks that have business dealings with the group company, so as to facilitate the free flow of funds. Secondly, the functional currency of the construction site shall be used as much as possible when the project funds are paid, and the idle funds shall be timely converted into hedging currencies such as US dollars to reduce exchange losses.

4、 Conclusion capital is the core for enterprises to maintain normal operation. Without capital support, enterprises will lose their vitality. Therefore, it is particularly important to control the funds of overseas construction enterprises. Only by strengthening the management of overseas funds, can overseas projects be promoted smoothly and enterprises develop healthily and permanently.

Source: Nantong going out.