Research On The Dynamic Management Of Project Cost And Its Application Of Construction Enterprises

Most construction enterprises in today's world adopt a static management method in which they barely attach enough importance to the Cost Management except in the phase of account settlement. To optimize enterprise internal management, maintain marketing partnership, and enhance enterprise competitiveness, a dynamic model of management of project cost throughout the whole process needs to be established. Based on the relevant theory, the paper makes some explorations of the establishment of the dynamic model.Firstly, after the analysis of relevant theories, management models and current study concerning project cost both domestically and internationally, the paper comes up with the concept that the cost management of construction enterprises should last the phase of tender and contract, construction, and account settlement.Secondly, the paper studies and explores the concept and contents of five dynamic elements:price factor, quantitative element, contract management, information management and team building.Thirdly, based on the study of the five dynamic elements and the exploration of such calculation and analysis methods as the methods of Unbalanced Biding, Value Index, Earned Value, and Decision Tree, the paper comes up with a dynamic cost management called the model of "11252"---one goal, one main line, three phase, five elements, two roles. The goal refers to lower input costs, increase profits and improve enterprise competitiveness, and maximize enterprise value. The main line means that the project cost management personnel is responsible for the whole process of the program. The three stages and five elements mean that the program should be divided into three stages:tender and contract, construction, and account settlement and during each respective stage the following five dynamic elements should receive full consideration:price factor, quantitative element, contract management, information management and team building. "Two roles" means that the above-mentioned measures will provide important information for the optimization and decision-making of the program and the cost forecast and control.At last, taking the 500,000 lighting production line as an example, the paper gives empirical analysis of the above-mentioned dynamic cost management:the model of "11252". During the phase of tender and contract, the paper, through the employment of unbalanced biding, taps the inherent potentials, and enhances the competitiveness of enterprises. During the construction phase, the paper, through the methods of Value Index, Earned Value, and Decision Tree, implements the decision-making, deviation correction and analysis on the construction scheme and makes comprehensive analysis of engineering changes and relevant claims. In the phase of account settlement, the paper mainly involves the update of information and a summary of the engineering data indicators.