| The construction industry is an important field of material production of the national economy in China, and it plays an irreplaceable role with the whole country in the development of infrastructure, transportation, and economy since the long-term. The more rapid it develops, the tighter it contact with people's living standard, the development of urbanization. In the next 50 years, the urbanization rate in China will reach beyond 76%. Meanwhile, the contribution of cities will reach to the more than 95 percent of national economy. The development of metropolis circle, urban agglomeration, linear city and the town centre will indicate the arrival of the new urbanization in China. At the same time, it indicates that the severe market competition situation in the building industry, and to secure an invincible position in the market competition, we must update and cultivate our core competitiveness of the construction enterprises to adapt to the growing market competition environment.The construction industry is facing unprecedented competition in China at present:(1)The promulgation of the infrastructure construction scale is getting more widely, and the demand is more higher, so the domestic construction market competition gradually want to broken the area restrictions, or even the industry boundary along with the rapid development of social economy, especially with the four trillion investment plan in our government; (2)According to the promise, the domestic construction market competition becomes more intense for that there had gone 3 years after the entry into WTO of China, and it had been allowed to establish enterprises, project contracting projects with foreign enterprises in domestic construction company since 2006.The overall profitability of construction industry is not up to the mark, the profit rate on funds of the construction enterprises is about 50% less than that of Japanese. The construction enterprise improves the operation condition and takes reform measures in recent years. But overall, the space of profit is rare. Cost control is the core content of the enterprise management, and it directly affects the enterprise profit throughout the whole process of production. If the construction enterprises want to foster their own core competitiveness, they must strengthen the cost control. The cost control of our country construction enterprise has many problems, particularly in the following aspects at present:(1) The consciousness of cost control of the administrator is weak; (2) It is huge of the construction industry construction team, but the employment personnel overall professional quality is not high; (3) The cost control methods have lagged behind; (4) The rights and liabilities are not clear, meanwhile the cost control of construction enterprises of the current responsibilities in engineering project is not perfected, the management level is low, and there are several mismatching problems are ambiguous that the combination of responsibility, right and interest of the departments is not good.In the highly competitive e construction industry, cost reducing is the most effective way to enhance the competitiveness of construction enterprises, a small number of advanced enterprises of our country's construction industry are committed to transform their cost control system from static cost control system, which are traditional, extensive, and do after the event controlling, quota targeting to dynamic cost control system, which are cautious, timeliness and in the entire process. To improve the competitiveness of construction enterprises in China, this view based on the limitations of traditional project cost control, proceed from the characteristics of the modern project itself. This paper chose ZTEJ enterprises, one of the large state-owned construction enterprises, to do case study, then it shows us the experience of ZTEJ through analyzed the challenges of construction enterprises face up in each dynamic cost control stage, To propose the implementation of dynamic control of project cost in China, to cope with the complex of the content of project and environment of project.This paper focus on solving "why" and "how" issues. "Why", that is, Why the current construction project cost control is unreasonable? Why it need to prove? "How", that is how to control the cost should be reasonable and effective.First of all, relying on a fund research group's researching process which the writer participates in, chose one of the large state-owned construction enterprises, ZTEJ enterprises as a typical construction enterprises in China Construction to study, collecting information in multi-channel and interview to it; With the grounded theory method for content analysis of interview data, point out the current cost control inadequacies of ZTEJ enterprise, building a new dynamic cost control system.Then, concluded that with the adequate theoretical argumentum, advanced analytical methods using, advancing by experienced business practitioners, learning from the enterprise with the team, the dynamic cost control system we building is reasonable and effective control system and method, dynamic cost control is efficacious which is in line with the modern features of the project construction production, overcome the limitations of traditional project cost control largely, As a large and representative of the construction enterprises, ZTEJ made useful exploring in this regard and achieved some success to reference for the majority of construction enterprises and to promote.This paper use grounded theory research method; it's a qualitative research method rise in recent years, and in the wider use of management science, the basic purpose is building theory from experience information. The difference between it and other qualitative methods is that, grounded theory method is constructing concepts and theories from a studied area, not verify the theory by collecting data. It is considered as the most scientific method of qualitative research.The paper is organized as follows:The first chapter, it introduced the study background, purpose and meaning, contribution and limitations, content and methods of the research.The second chapter, reviewing the cost control theory and practice literature from both general theory and method of cost control and trouble of project cost control.The third chapter, describing the research process, which is building process of project dynamic cost control system, analyzes interview information with grounded theory research method; obtain the research results through open coding, axial coding and selective coding process.This paper sets up the Dynamic Cost Control System, which includes three subsidiaries:Pilot System, Executive System and Support System. Pilot System is a macro system, which has cost control rules, cost control system and cost control idea, implemented by the group. Executive system is implemented by the subsidiaries or project administration, which includes prior control, a matter of control and subsequent control. The project cost control is dynamic, which requests the administrators working on this according to actual cost of the project with the progression in order to realize the efficient administration and control of the cost, so it is also an interactive control, synthetically control and all participated control. The support system has three parts. First part is the responsibility system, which the company should form the organizations by projects, identify the positions and responsibilities, as well as identified working process. The second part is to build the information system. The third is the data system, which the company should build the database in order to store the useful information for future use.The fourth chapter, elaborating the research findings in the example of dynamic cost control system of ZTEJ.The fifth chapter, conclusion and outlook, the paper summarizes research findings, and the prospect of the follow-up research.From the construction enterprise project management features and cost management of the current situation of China, with the subject resources, obtaining favorable cooperation with ZTEJ, in support of the teachers in subject and managers of ZTEJ, writer obtained research conclusions by the processes of contacting with the subject, field studies in ZTEJ, identifying problems, and analyzing problems with grounded theory during these two years'study. The contribution of this in the following areas:firstly, in the research content, although the domestic and international researchers has do many study on project dynamic cost control, it's hard to get cost data because of the confidentiality of it, cause the cost of dynamic control for a particular company is one of the few in-depth study, This paper fortunate to have the support of the company and research group, get further contacts with corporate executives and get the date for my research; Second, to the method, at present, quantitative research is used widely in project dynamic cost control, though grounded theory is used widely in foreign management, but in our study of management has been less use of, especially in the dynamic control of project cost is rare at, writer do the exploration of the cost control of the construction projects with grounded theory method, strive to make breakthroughs in the method; thirdly, on the result, by up to two years of reading, observation, interviews, internships, analysis, writer have in-depth understanding of construction enterprises cost control, fully solicit suggestions for the practice, get the operable conclusion under the science method, and for business reference, make a certain contribution of project cost control practices.As so far according to the limitation of management of construction companies and capacity of staffs, the control system may not applicable to all construction companies, and also may not totally be implemented, but this system can be used to test the management level of the company and help the administrators to improve as a standard process. This paper uses the qualitative research, which author describes what I have seen, heard, thought during the research and presented my views. This research is the exploration of the cost control of the construction projects.The limitation of this paper mainly lies in the following aspects:First, the result may be affected by a small number of recordings which are destroyed or not clear. Second, we don't have enough time to put the Dynamic Cost Control System set up by field research into practice, which the effectiveness of the system can't be observed. Third, because of the scarcity of prior literatures and also the limitation of author's knowledge and research capacity, there must be some flaws in the paper. |
PDF Full Text Request