Case Study On The Cost Management Of FGD Project In LHOF RDC Factory

China is a coal-dominated energy structure nation. With the growing consumption of coal, So2 emissions from coal are increasing, which has become a focus concern for Chinese government. How to control So2 emissions imperatively has become an urgent requirement for the social and economic sustainable development. Therefore it is inevitable for power plants to response to the national policy and, to take responsibilities and obligations to reduce the emission. However, power plants need bear the high cost of construction investment, daily operation and maintenance expenses, management fees and so on when they launch a desulfurization project. But it is difficult to obtain the direct economic benefits. Scientific and effective cost management is the fundamental way to improve enterprise management level and economic benefits, and also is an important source and assurance of sustainable competitiveness. So power plants need to combine the practical characteristics of desulfurization project in order to search for a scientific and reasonable cost management method. For every power plant, it s an important issue that how to use the cost management theory and method to control and manage the Flue Gas Desulphurization project cost effectively.This paper studies the modern cost management theory and method on the basis of reading a large number of related references and the LHOF FGD project-related documents, and introduces the situations of the LHOF FGD project cost management. Besides it summaries and analyses the problems occurred in the course of the project cost management. With the support of modern cost management theories and methods, this paper mainly studies the major control points and measures for desulfurization project cost management at different phases including the preparation phase, designing phase, equipment procurement phase, construction and installation phase, commissioning and operation phase. By combining the whole process, the life cycle and the total cost management mode with the cost management practices of LHOF FGD project, this paper summarizes some recommendations and measures for cost management of FGD project in China. The aim of this paper is to improve the level of FGD project cost management in China and to make some practical significance.By combining the theory with the practice, the qualitative analysis with the quantitative analysis, this paper not only studies and analyses the cost management of LHOF FGD project systematically, but also proposes FGD project phase cost management methods, recommendations and countermeasures with the support of the modern cost management theories and methods, which is hoped to be helpful for improving the level of FGD project cost management in China.