Research On Project Cost Control For Network Reconstruction Of Ba Da Guan Hotel In Qingdao

Cost control is a crucial part in enterprise cost management. It has been a great development to apply theory to cost control in practice. This application is also the symbol and component of modern cost management. Since commodity economy is highly developed today that dominates the market, competition between enterprises is becoming more and more intense, while the incompetence of enterprise management may be very much likely to result in profit loss. In order to survive the competition, a greater importance should be attached to project cost management to save more enterprise profit. Therefore, project cost management is becoming a key issue as well as an indispensable component in project management in a deeper sense. As a new economic growth source, it can also trigger, or lead to the transformation of enterprise management structure.Take the competition in hotel industry as an example. Due to the lack of financial management system, cost budgeting, cost control and other scientific and efficient management measures, some hotels lost their financial balance in the end. On the other hand, the building of cost budgeting system, a strengthened cost management to reduce cost would be much more helpful in raising profit and growing competitiveness. Ba Da Guan Hotel in Qingdao is a five star hotel that provide services for the government. In order to improve the stability and qualify of its network and make the system under management control at the same time, the hotel reconstructs and updates the facilities such as visual monitoring system, electronic voice exchange and network integration. This research is carried out on the above-mentioned network reconstruction project. After elaborating on the theory and method of project cost management, the author does investigation of the management problem throughout the execution, and proposes her solution to the problem at last. The conclusion of this thesis may also serve as a reference for further project on cost management.The analysis is based on the disciplines of project management and project cost control. First, the author analyzes the status in quo of project cost control and its application in hotel industry in China, and elaborates on the significance of the research on cost control theory and method. After comparison, the author summarizes the cost control theory both in China and abroad. Secondly, the author introduces the basic definitions of project construction cost control, as well as the theory and method. The connotation, category, principle, content and method of cost control are specifically expounded in this part. Thirdly, the author investigates the cost control method in Ba Da Guan Hotel Network Reconstruction project according to the cost budgeting, schedule and administrative process etc., and analyzes the deviation and cost control problem during the project by applying earned value analysis. In conclusion, a series of proposals to the problem is specified to control cost in the process of project construction. It might be of some help and reference to the establishment of cost control system and its application in the future.