Research On Cost Control Of Construction Enterprises

Nowadays, international competitions are very fierce, which brings challenges to the development of our country's modern enterprises from all directions. In order to get success, enterprises have to work out strategies that can run for a long time, manage the cost effectively, and establish its own competitive advantages. Cost control occupies an important position in the management of cost. The qualitative change of the competition environment requires that the enterprise's cost control closely cooperate with its competition strategies. It should be considered from the enterprise's value chain, concerning with the productive process, as well as creation, after-sale service. It should pay attention to the relationship with suppliers, customers and sellers, so to create various opportunities and obtain the competitive edge.Construction industry is one of our country's prop industries, and it plays an important role in the country's economy. At present, with the overall improvement in security, technology, and quality of construction enterprises, the level of cost control has already become the most important factor to measure the key competitive ability of a construction enterprise. Our research on its cost control has always followed the method to that on traditional industries for a long time. But actually under the market economy, many construction enterprises are a kind of suppliers of comprehensive services, including both productive activities and designing, consulting, circulating funds. Only if cost control of construction industry is in line with characteristics of the industry can it plays positive effects. As a result, it is significant to seek the right way of cost control that is in accordance with its characteristics.The cost control method based on the value chain theory provides a way to solve the problem in the construction industry. This paper is exactly an initiative research on the new topic. Firstly, we have a review on value chain and relative theories of cost control, and analyze the emergence and development of them. Secondly, on the basis of the theory of value chain and cost control, it put forwards the concept of cost and cost control based on value chain, so to provide the theoretical basis for the cost control on value chain. Finally, by analyzing the actual situation of the China Three Building company, a famous construction company in China, the thesis tries to testify that the method of cost control based on vale chain is correct and effective.