Study On Application Of Responsibility Cost Management In Municipal Engineering Project

The continuously advancing urbanization offers a particularly rare opportunity for the infrastructure construction of municipal administration. However, as the bidding mechanism of the municipal engineering project keeps improving and the price competition becomes more and more rational, the benefit room for municipal engineering project has been squeezed. The project cost management mode relying merely on the tradition extensive type cannot meet the demands of the increasing competitive market any more. As a result, it has become an urgent task to improve and solve the problem in the extensive type of the municipal project cost management.Even though the overseas and domestic theories and studies in engineering project have been abundant, few theories and studies in the responsibility cost management of municipal engineering project are comprehensive and systematic. Thus the paper aims to enrich the theory and study in the municipal engineering project, improve the cost management level in the municipal engineering project and construct a new, simple and easily-operating project responsibility cost management system.The overall design of the paper falls into three parts:Basic Theories ——System Construction——Case study, which can be further divided in the following parts:Part1. A summary and study on the overseas and domestic survey in the background, purposes, and meanings of the study in project cost management as well as concepts like project cost management and responsibility cost management. Part2. The construction of a responsibility cost management system from five aspects including the organization construction, responsibility budget construction and so on. Part3. An application study in project cost management by taking Kunming’s Chenggong New Area’s NO.151planning Ring Road Project as the study case.By having a comprehensive analysis and summary in the mature overseas and domestic study of theories and practices in project cost management, taking into consideration in the enterprises’problems and common failings in the cost management of municipal engineering project, and using the principals and methods in relevant cost management, this papers aims to construct a new responsibility cost management system. This new mode is expected to be applied to the practice of cost management of Chenggong New Area’s NO.151planning Ring Road Project, expecting to regulate the cost management of the implementation enterprises, lower its project cost, increase its economic benefit, and offers referential and effective project cost management. From the perspective of project responsibility cost management, the papers focuses on the problem of the optimization and upgrading of the project responsibility cost management in some municipal enterprises. This paper is also expected to provide a referential experience in the field of responsibility cost management in the municipal engineering project and offers a reference for the implementation enterprises to improve its project cost management.The study is creative. It adopts many study methods including literature review, field investigation, cost benefit and case study. It conducts a comprehensive study in the theories, principles, methods and measures concerning project cost management. Taking organization system and the institutional system as its framework, the paper takes "Project Organization Mode——Project Responsibility Budget——Controlling the Procedures of Project Responsibility Management——Project Responsibility Cost Accounting" as its main content, which hopes to construct a Responsibility Cost Center, and takes responsibility decomposition as its means to optimize the control settings in the direct responsibility cost, indirect responsibility cost and variations and claims in the municipal project, aiming to make the project cost management controllable within the original target scope, improve and perfect the problem of the extensive management in municipal project and finally construct a new system of project responsibility cost management.