A Study On The Change Of Project Cost Control Paradigm In China

As the development of the socialist market economy, the construction industry in the national economy has always played an important role, which directly affects the healthy development of the improvement of employment levels and improve the quality of life.30 years of reform and opening, the construction industry's output grew more than 20 times the proportion in the national economy gradually improved, from the initial 3.8% in 1978 to the current 7%, In addition, more than half of China's investment in fixed assets are formed by the construction of new productivity or use value. This shows that China's construction enterprises are facing unprecedented opportunities for development, but the competition between construction companies are still very intense, demand exceeds supply situation remains unchanged. Therefore, our construction companies to obtain greater development of cost management must be strengthened to enhance market competitiveness.In this paper, the cost of China Railway NO.2 Engineering Group Co.,Ltd's management council, for example, a collection of theory and practice through case study method to investigate the target cost management of construction enterprises in China in the application. Purpose of this study is to explore a set of cost management of construction enterprises in China for the target cost management. Construction enterprises to introduce and implement target cost management at the strategic management of the project cost will help to change thinking, to strengthen the forecast cost of the project objectives and develop and effectively ensure the accurate accounting of project costs; the same time strengthen the tactics of business process engineering optimization. In order to provide theoretical reference for more to solve the problem of cost management of construction enterprises, and promote the entire industry value chain, value-added and production changes in the environment, the target cost management applications to the construction business, you can do before, during and after The whole process control, can promote the entire industry value chain, value-added, to promote changes in industry production environment, thereby increasing the economic benefits of construction enterprises, and enhance its core competitiveness. The introduction of the target cost management to the construction cost management companies, construction enterprises in China to update the traditional concept of cost management, cost management out of the predicament of modern cost management to enhance the level of great theoretical and practical significance.This article is divided into six parts:Introduction, Development of cost management, target cost development, cost accounting and decomposition, analysis and assessment and conclusions.The full-text mainly use the combination of theoretical research and practical case studies analysis. Through quantitative and qualitative analysis of large-scale construction enterprises in the implementation of the use of target cost management to discuss the situation. Target cost management of construction enterprises in the application of the advantages and disadvantages for a more in-depth and detailed analysis, in order to build a large state-owned construction enterprises for the characteristics of target cost management, and through the China Railway Bureau into irrigation.The implementation of the project cost control case, under the law of the use of the project target cost project management to analyze the whole process and achieved the desired results.