Study On The Current-State Analysis And Improvement Measures For Project Cost Controlling Of Tianjin H Company

With the continued development of Chinese architectural decoration industry, the market is divided more detailed and more professionally, it is also increasingly competitive. However, due to the lack of differences in management between enterprises, the price is still the primary means of competition, the lowest bid has been quite common, making the profits of the enterprises getting smaller and smaller, architectural decoration companies have felt unprecedented challenges and pressures. How to make the price advantage, how to strengthen project management, how to improve economic efficiency, is the key issue of the architectural decoration company's development. So project cost control has become the most important issue of architectural decoration company's project management.The rapid developing of Tianjin city offers a large market and development space .for architectural decoration companies. Along the situation, the output value of Tianjin H Company has grown rapidly with the increase of contracted projects, it's a good result. But, it's found through the investigation that the company's profits are not increased with the value. The reason is that the company paid more attention to quality and safety then cost control and management, and lack of appropriate cost control management system. However, the company proposed goals to achieve industrialization, making the company bigger and stronger, and then developed out of Tianjin, to the whole country and even to the world. So, to achieve this goal, it's the fundamental way to strengthen project management and improve economic efficiency. Therefore, the company must pay more efforts to project management, try to accumulate aftereffects to maintain sustained and healthy development. To this end, strengthening project cost control has become a serious problem for the company.This paper based on the theory of project cost control, beginning from the present situation analysis of Tianjin H Company's project cost control, analyzed the problems in areas, such as cost control performance, organizational systems and management rules, etc. To deal with these problems, put forward the corresponding optimal design safeguards, so that the company can realize its project cost control in the whole process and by all staffs. The paper is divided into five parts:The first part is the introduction. This part explained the background of the main study, the purpose and significance of research and major research contents.The second part outlines the theories of project cost control. Include the concept, the significance, the principals, the procedures and the methods of project cost control, in order to provide a theoretical basis for later part.The third part, the analysis of Tianjin H Company's project cost control. First, the main performance analysis of its project cost control by year, by project type, by project size and by project cost components, the result is that the company's profit rate is very low, about 2%, and there is also a downward trend, some projects still at a loss state; And then followed by the analysis of the organizational system and management system about project cost control, and it's still found that there are many imperfections in these systems, and the causes in detail are also analyzed so that it can provide improved measures for the next part.The forth Part is the improved design and implementation security measures for the project cost control system.First, proposed improved design and recommendations for organization system. Including the optimization of project cost control organizational structure, clarifying the responsibilities of company, the project manager and all the staffs; and then progressively broken down cost targets, clearing all staffs'responsibilities; finally signing responsibility contracts for project cost control.Secondly, the paper improved design and recommendations for control processes and management rules in the whole process of cost control, including pre-period, mid-period and after-period. During the pre-period, the company should pay more attention to the forecast of cost, the establishment of project objective cost, and the break down of responsibilities; During the mid-period, the paper highlighted recommendations for the cost control of human resources, materials, financial costs and contract management, and also should try to deal with the relationships between quality, duration, safety and cost; During the after-period, proposed improved design for strengthen the control of final accounts of the project and accounts receivable, and how to do the cost-offset correction timely. To improve the feasibility of the design, the paper gave a case analysis. In addition, the cost control performance appraisal system and incentive system design has also improved and with the feasibility analysis.Finally, the corresponding implementation of the safeguard measures improved, such as enhancing training, strengthening company's culture, full use of advanced information methods and ways to increase capital investment, etc.The fifth part is conclusion and outlook. To achieve the goal of bigger and stronger, Tianjin H Company will have a long way to go through in the project cost control. This paper try to find the company's leak and lack of cost control, and explore the corresponding optimal design, the company's project cost control management will be promoted, and then goes gradually along a correct path.