Cost Control Management Of Multi-function Training Building Project Of Fengman Training Center

Project cost management and control is implemented throughout the construction process, the project management and control of the whole process which aimed to achieve the cost targets is to manage the payments occurring in a comprehensive system from the start to the end, so as to achieve the purpose of process optimization. The purpose of research on project cost management and control concentrated on economic efficiency, ensure the approved budget and achieve the best results on the duration, quality, cost, etc.With the continuous development of market economy, the construction market with bidding as its main features has been formed, thus industry competition in the market highlighted in the cost. For the construction enterprises attempting to improve the market competitiveness, the most important thing is to minimize the consumption of material and labor to reduce the cost and make every kind of consumption in control. Therefore, the enterprises must strengthen the construction cost management to enhance the market adaptability and competitiveness. The domestic construction market in China is very huge and complex. With the in-depth development of market economy and China's accession to the World Trade Organization, foreign construction enterprises are expected to enter, so the competition in the construction market in China will be increasingly fierce. Project is the cost center of construction enterprises and also the standpoint and set point of construction cost management. The inevitable choice for the construction enterprises to accumulate capital and improve competitiveness is to enhance the cost management. Therefore, this paper select project cost analysis and control as its research content, with important significance for enriching the theory on project cost analysis and control, and the practice of cost management of construction enterprises in China.Taking the cost control process of the multi-functional teaching and training building project of the Northeast China Grid Co., Ltd. full training center for example, this paper provides a brief overview of the project, the project scope, the project structure and allocation of the resource construction production, etc. Besides that, this paper provides specific description of the project from the establishment of project progress schedule, the formulation of the project cost objectives to the cost measurement developed by the Ministry of cost control and the implementation of the whole process of cost control, in addition, based on the entire part of the implementation process, this paper concludes the lesson learned, and puts up with the main issues in the project cost management and revelations on the similar project cost management in China. This paper uses the project management, project cost management, project management, earned value method, bill of quantities and other methods to do a detailed study of the cost of the project management.The multi-functional teaching and training building project of Full training center in Northeast China Grid Co., Ltd. was constructed by the Jilin Petroleum Corporation in the form of tender, which is in the way of tender offer quantities. By summing up the project management experience and find out the advanced methods of cost control in practice for the company, the construction enterprises are able to maximize the benefits of the project implementation, thus enhance competitiveness.With the description profile of Northeast power grid the full multi-functional teaching and training House Training Centre project, including project scope, project structure, construction programs and other content, then outlined the construction schedule of the project preparation. Through the establishment of detailed construction schedule, the cost of each target was decomposed, and determined the final set of objectives of cost control in every professional and periods. The bidding price of the project was 14.9842 million yuan, and the project cost control objectives was 12.5512 million yuan. After deduction of project management costs of the Department, project personnel, including salaries, fees andamortization of fixed costs, the expected profit was 323,300 yuan and profit margin was 2.16%.Cost control objectives defined, the following thing was the specific measures to ensure to achieve the project cost control objectives. First of all, built cost management system, and provided the responsible person with a simple description, carried out the contract management responsibility system, determined the least profit margin to be the 2% of the project settlement account, and elaborated of the specific method of project costs control. The project cost control process is implemented through three stages. The first phase (April 1, 2007 ~ June 30, 2007), the second phase (July 1, 2007 ~ August 31, 2007), the third phase (September 1, 2007 ~ 2007 on November 15), through using earned value method in each stage to gain the calculation of each indicator of project cost / progress to analyze and control, summarized the shortcomings, lessons learned, in the next phase corrected in time to make up and achieved the project cost control objectives in the end. Final settlement amount of this project was 14.3 million yuan, the project cost was 11.98 million yuan, and after deduction of fees should be turned over to the company, project management fees, salaries and expenses shall be borne, the actual profit was 376,100 yuan, the profit margin was 2.63% and exceeded the target of 323,300 yuan.Finally, summarized the project cost management experience of full training center in Northeast Power Multifunctional training building, analyzed several important factors of the impact of the project cost including the benefits of sub-professional models, the impact of materials and labor costs on the project cost control. At the same time proposed several issues during this project management process, that is, lack of cost management system with combination of right, responsibility and interest, ignoring the management of the"period cost", the managers lack of economic sense, etc. In this thesis, through the implementation of the project, it gives some enlightenment to the similar projects. In the future, the cost management process of similar projects should focus on the establishment of cost management system with combination of right, responsibility and interest, follow the principle of democratic centralism and the principles of standardization, and focus on obtaining interest from the cost control of period cost. Using scientific management methods, must strengthen the economic concepts, establish full economic sense, and pay attention to improve the contracts to avoid a legal loss.