Study On The Entire Process Of Construction Cost Management Applications

With the consummating of the socialist market economic system in our country, the deepening of opening-up,the expediting of the international process,especially after entering into WTO,economic construction in China has developed rapidly.With great development of economy,the construction of infrastructure,which is a main part of the investment on fixed assets,has rapidly increased in the past 10 years.As a developing country,it is urgent for us to resolve the problems that how to decrease the cost of project and save the investment so as to increase the value of money and social efficiency with unchanging the scale and meeting the technical standards for quality, and within the stipulated time.It's said that we must work out a method on cost control through whole processes to use and distribute the investment more efficiently and reasonably.There are many problems that are baffling the effective implementation of the method of cost control.These phenomenons are inevitably caused by the failure to control the cost in specific process.The characteristics of investment to a project,such as the large investment volume,the long investment cycle and the one-off investment, determine a complete and omni-directional system in the entire process of construction cost management.Considering the features of construction such as long investing period,vast and one-off investment,the cost must be controlled through a whole-process and all-around cost management system.The aims of this paper are to work out a method and approach on the cost control through whole processes,by analysis of the prevailing existing problems in cost control,so as to promote the scientific development of cost control and the unification of the cost management with international practice.Therefore,basing on the reviewing of the historical development of the theories and practices of cost management at home and abroad and analysing the current situation of it,the author analyses the existing problems of the project cost management.Then the contents and targets of cost management in different stages of project are introduced,and the necessity of cost control through whole processes is explained.On the above basis,the author discusses the measures and approaches of the cost control through whole processes and puts forward the building of the cost management through whole processes.This paper places emphasis on the main points of the cost control in decision-making,designing,bidding,constructing,completing and auditing of the investment in a project;and also gives much importance to the discussion of the measures and approaches and the points of attention of the cost management during different stages.The findings of this paper are listed as follows:First,there is a disjunction between different stages of the entire process of construction cost management.Second,there is a deficiency in the participation of the third party - owners who have experience in construction management and practice-during the entire process of construction cost management.Third,the management system in which the investor plays a leading role and the third party participates through the whole processes must be established in order to bring into full as regards attaching the importance to the entire process of construction cost management.The author cites cases to make a further discussion on the measures and approaches of the cost control through whole processes and affirm the necessity of it.