Application Of Earned Value Concept In The Dynamic Control Of Construction Cost

In the socialistic market-directed economy, the success of construction cost management is critical to the benefit of a project. Now in our country the construction cost management reformation is ongoing such as pushing the Bill of Quantity mode. At the same time, the cost control is also an important content of cost management because a sound control method can make the cost management more effective. Therefore the research on the scientific and practical cost control methods is important and can promote the cost management.This paper discusses the primary work and basic methods of the construction cost control in the three periods of a project, outlining the process of alltime cost dynamic control for cost control agency. According to the analysis of the current control methods, the writer finds that the current control of cost and schedule is separate. It is necessary to apply an integral control of the cost and schedule of a project. So this paper introduces the Earned Value Concept in dynamic cost control of a project in its operating period and establishes the applying steps.This writer introduces a numeric analysis method to convert the schedule variance based on cost variance to a real time variance so that the analysis outcome becomes more directive. To make the control more dynamic, the writer establishes a costs and schedule forecast model based on the Grey Dynamic Model GM(1,1) to enhance the approach's forecasting function.A sound method should be banausic to facilitate the actual work, therefore the writer designs an application based on the MATLAB program so that the dynamic control of construction cost becomes convenient and prompt.