Research On The Whole-process Cost Management Of Construction Projects

With the consummating of the economic system in our country, China has become more open and more international, especially after entering into WTO. With great development of economy, the construction of infrastructure, which is a main part of the investment on fixed assets, has rapidly increased in the past 10 years. It is urgent for us to resolve the problems that how to decrease the cost of project and to save the investment so as to increase the value of money and social efficiency with the unchanged scale and meeting the technical standards for quality, and within the stipulated time. It's said that we must work out a method on cost control through whole processes to use and distribute the investment more efficiently and reasonably. Though the thought of cost control through whole processes has prevailed in our country for a long time, but there are still many problem that are baffling the effective implementation of the method of cost control. Now, there are many phenomenons of failure to keep within the cost budget/ forecast/ estimate/ tender in construction industry. These phenomenons are at least caused in part by the failure to control the cost in specific process. Considering the features of construction such as long investing period, vast and one-off investment, the cost must be controlled through a whole-process and all-around cost management system. The aims of this paper are to work out a method and approach on the cost control through whole processes, by analysis of the prevailing existing problems in cost control, so as to promote the scientific development of cost control and the unification of the cost management with international.In this paper, the author adopts the method of comparative study, and integrates qualitative analysis with quantitative analysis, empirical research with theoretical research. The author analyses the existing conditions and problems of the project cost management in the different stages of project and different aspects, after reviewing the development of the theories and practices of cost management in China and other countries. Then he explains the necessity of controlling cost through whole process, and points out the notion of building the cost management system through whole processes.The following are the main two part of this paper:Firstly, basing on the reviewing of the historical development of the theories and practices of cost management in international and analysing the current condition of it, the author analyses the existing problems of the project cost management. Then the contents and targets of cost management in different stages of project are introduce, and the necessity of cost control through whole processes are explained.On the other hand, the author discusses the measures and approaches of the cost control through whole processes, and points out the opinion of constituting the system of cost management through whole processes. The discussion of the measures and approaches is an emphasis of the paper. The author also analyses the importance of cost management in the investment decision stage and design stage. The emphasis and noticeable issues in other project stage are also introduced, which is stressed by the author.