Construction Projects Cost Management In Construction Phase

With the continuous opening up of the construction market and construction of market competition intensified, it is tend for our business to go to the world through continuous improving out competitiveness. In many construction of foreign multinational companies, most with advanced management experiences and models, as opposed to domestic construction companies, have a strong competitive edge, which requires our China's construction enterprises in a higher level of project management, that is, the construction industry must seize the current market opportunities, adapting to the highly competitive market environment.At present, the level of China's construction enterprises in the project cost management is generally not high. Construction companies often rely on the pursuit of low prices to get the bid at the tender stage, and increase the cost by increasing the change during the project implementation process. This vicious cycle mode of competition not only harms the interests of investors, resulting in unnecessary loss of investors, but also undermines the credibility of their own construction and competitiveness, unfavorable for their long-term development. Therefore, the research of construction enterprises in project cost management has important practical significance.In the article, we conduct the research from two aspects by combining the theory and case. In summary of the theoretical part, we use the mixture of the whole process of project cost management and goal management as an important guiding ideology for the study, cost risk assessment methods and a variety of cost management as a research tool. Then we analyze a variety of factors impacting construction project cost. In the case of part, we adopt a variety of methods to test and analysis project cost management by using the comprehensive building project with a school as an example, make quantitative analysis with tools such as Excel and Yaahp, and finger out the main problems in project cost management, which provides reference for the enterprises in the project cost management. Paper is divided into five sections, as follows:Chapter 1, introduction. We mainly introduces the research and discussion of domestic and foreign scholars and practitioners about project cost management, the current research status and research results. By the analysis, we describe the research method and content.Chapter 2, the theory review of project cost management. This chapter is divided into three parts: target cost management theory, the whole process of project cost, project cost risk management theory. Target cost management is a combination of goal management and cost management. The core idea of cost control is , in the course of project implementation, based on the goal cost, to construct the management system through a series of activities in order to achieve optimum benefits. The whole process of the construction phase of the project cost control is in the entire period of project implementation, to achieve reduce costs and increase profits with controlling the actual cost within the scope of the project costs, by the use of scientific and rational management tools and methods. The whole process of construction project cost management includes cost projections, planning, control, accounting and analysis of assessment. For construction enterprises, the project cost risk can be divided into internal and external risks. In general, all the risk factors except the contractor's risk factors can be classified as external risks.Chapter 3, the construction cost of the influencing factors. In this chapter, we analyze the factors affecting the cost. According to researching the management status of our project cost, we summarize that there are mainly four influencing points : The project construction period, materials management, quality management and project management level.Chapter 4, case analysis. We Select a middle school teaching building construction project cost management as a case study, and analyze the project cost management in the implementation phase from four aspects of the set target cost, target cost breakdown, cost risk analysis and cost - schedule control. We use the target cost management and the whole process of thinking as the guiding ideology, the whole process of cost management processes as the main line, to do risk analysis and cost - schedule variance analysis , which can solve practical problems encountered in the implementation of the project cost management.Chapter 5, conclusions and outlook. We summarize the contents of text, pointing out the inadequacies and outlook the future research directions about project cost management.Through the full research and analysis in this text, we can conclude as follows: through the construction project cost management theories, we consider that it can improve the level of project cost management through using the combination of the whole process of and cost management and the objectives of the project cost management as the important guiding ideology; combining the risk management and cost management, we introduce the AHP to do the quantitative analysis of the cost of the risk factors, which shows that it is more helpful for managers to identify risks and prevention of risks if we use the AHP in the cost risk analysis to give a detailed evaluation of each risk factor; after a detailed analysis of the cost control by applying earned value method, value engineering, and target costing, we can overcome the defects of fees and costs previously separated by introducing these methods in project cost and process control .Finally, on the prospects of cost management research, we suggest that informationalized and modelized cost management will be a major research direction. It has the far-reaching practical significance for the control model to build control system platform and the dynamic control model suitable for our building construction enterprises'cost management by introducing the combination of the Costing process and cost planning, the computer and network technology and system dynamics methods into the project cost management.