The Necessity And Viability Of The Application Of Whole Life Cycle Cost Management Model

The project cost management model that we're applying now is Whole Process Cost Management model using the ration as the pricing basis. This model has showed its apparent inadaptability mainly in the following three aspects: Ⅰ. Implementation phase is regarded as the key stage in Project Cost Management. It gives no prominence to decision-making stage and engineering or designing stage. Ⅱ. It focuses more on construction cost and gives little or no consideration to the succedent operating cost and maintenance cost. Ⅲ. The static project cost management model that we're applying is not closely related with major project elements' market price. It cannot reflect the real project price and it's not in line with the international dynamic cost management.Guided by domestic and international cost management theories and the related theories in economics, architecture and systematology, referring to the latest research results in related field and the current situation of domestic project cost management, this thesis made comparison between the characteristics and advantages of the Whole Process Cost Management model and the Whole Life Cycle Cost Management model. Based on the comparison result and project -speciality-analysis, the author thinks that the Whole Life Cycle Cost Management model covers the whole project life cycles and targets on the whole cycle cost including the construction cost and thus it's very suitable for the high-investment-risk, long-project-cycle project in which the project owner is responsible for both the construction and the operating & maintenance.Based on the study and his working experience, the author made theoretical analysis and case studies. This thesis illustrates the necessity and viability of the application of Whole Life Cycle Cost Management model into petroleum exploration & production projects. The author also made some suggestions on the...