Study On The Risk Management Method Of Construction Project Cost

Construction project cost management is an effective method to control project investment and increase income. However, much uncertainty and risk exist in the course of project construction, which brings uncertainties to the project cost. Therefore, construction project cost can be divided into certain cost and risk cost. The risk cost happens randomly, which lies on the occurrence of related risk. Risk cost is the focus of cost management, but current cost management theory fails to provide guaidance in this area. The thesis will focus on the technique research on risk cost management, and propose an resolvent for the wide cost management in China.The thesis first outlines the definitions of construction project cost management and construction project risk management,and studies the relationship between project risk and risk cost, based on which the cost risk management model for construction projects is developed to realize the integrative management of risk and cost. Two sections of the thesis are organized to systematically study this theory. The first one proposes the research method on construction project cost information, and specifies the factors influencing costs. Then the technique of detecting and measuring the cost risk factors is studied, and Monte Carlo Simulation is introduced to calculate the risk cost. The second section investigates the method of controlling construction project risk cost.The thesis proves that Monte Carlo Simulation is an effective cost calculation method, and analyzes the feasibility and necessity of the project cost risk management, which provides the technical and methodological support for the risk management for construction projects.