Research On The Cost Management System Of Consruction Project Based On Target Cost Contract

As the continual development of the theoretical and practical methods of contruction projects, the partnering, which intiates trust and cooperation between parties, is subjected to more attention and application. The Target Cost Contract is the mostly used payment in partnering, reseach of the cost management system under the Target Cost Contract can promote the successful implementaion effectively, and help onwer and contractor obtain ecnomic benefits from projects.Chapter I of this dissertation summarizes the application of TCC in contrucion projects, analyses the commonly used target cost management method, points out the significances of reseach on cost management system under TCC.Chapter II discusses the basic theory of contract management knowlegdes of contruction project, which includes parties, models of management and payment of the contract, then introduces the characters and application scope of the different contracts. The partnering and cost reimbursement models are mainly discussed, and introduce the standards of choosing an appropriate contract model.Chapter III generally discusses the Target Cost Contract, and mainly analyses the operation mechanism, risk management, advantages and disadvantages of TCC. The key points of how to run a TCC lies of setting the target cost and the contractor's sharing fractions properly, and strengthen the management of risks.Chapter IV firstly introduces the basic theroy of cost management of construction project, then establish the cost management system based on TCC, which focus on the implementation procedure of the owner and contractor seperately. The owner should do well the cost management of the different stages during the project, just like disign, procurement, construction and settlement. The contractor has to implement the target cost management on enterprise management level and project management department, in order to realise the target cost of the project.Chapter V uses a case of a real estate development project to analyse the experience of the application of target cost contract, which practically studies the theroy reseach of this subject.