A Study On Government Investment Project Cost Management Based On Bounded Rationality

In order to promote the development of national or area economy, meet the needs of society, culture, life, politics or national defense, fundamental engineering project has become one of the important marketing activities. The traditional engineering project cost management is guided by the hypothesis of full rationality person in western economics. Therefore, in the process of carrying out engineering cost management, the common phenomenon in this field presents as purchasing short-term profit maximization or cost minimization partly and ignoring the comprehensive and long-term profit of the principal part. This phenomenon brings quite a lot of mistakes in engineering project cost management. However, as government investment project leads to national wide profit, it becomes the hot point in this field. In the practical issue of government investment project,"problem project"are wildly existing and some serious bribing crime cases are related. But no effective solution has been found to deal with this problem.On the summary of large quantity of practical research, from the theory of bounded rationality, and on the hypothesis of full life cycle cost management, this paper exploringly carries out the study of government investment project cost management based on bounded rationality. By combining qualitative and quantitative methods, using fuzzy evaluation, entropy method, this paper analyses the key contents in different stages of government investment project cost management under bounded rationality and the direct and essential reasons of"decision beyond budget, budget beyond estimation, and estimation beyond evaluation", creatively raises the method combining Earned Value measure and Grey Relation Analysis(GRA) to execute the unite control of procedure and expense in projecting process, discusses how to realize the effective management of government investment project cost in the aspect of mechanism designing, so as to promote and complete management of government investment project cost, to realize the social benefit of government investment and to impulse the quick development of our country's economy.