Total Cost Management Application In Construction Projects

With the rapid development of economic and social, number and size of the projects are improved, and there are the new challenges to depth and breadth of project management. In order to guarantee the smooth completion and the profit of the project, project cost management has always been the focus of project management. So the emergence of the total project cost management is a necessity.Total cost management theory is put forward by the engineering community of a new type of comprehensive project cost management theory, it is a set of theory system that as activity cased costing and management of the whole process cost management the foundation, and using the method of total factor and total risk to technology management, and use the method of whole team to coordinate the competition and cooperation relationship of the interests related members of the project at the same time. Total cost management get the experts and official organization’s attention as soon as been put forward, And gradually formed the two theoretical systems, one set of Total cost management theory that was proposed by AACE-I is suitable for the engineering project cost management. Another set of Total cost management theory that was put forward by Ernst&young is suitable for the products and services introduced. Then, AACE-I given official detailed definition of Total cost management theory system that was use for engineering projects. But even to this day, engineering project management field still did not give a specific methods system of Total cost management. So we say that the total cost management has deficiency in the aspect of methodology.This paper summarizes the views of the domestic and foreign expert to total cost management methodology, according to the detailed definition of total cost management that was given by AACE-I, and from the start of the four theoretic subsystems of total cost management, discussed the method and process of total cost management in the project of construction engineering, and researched theoretical relation and logic model of whole process, total factor, total risk, and whole team cost management. In the case of library project, clearly how to use the whole process, all elements, total risk, the whole team’s technical methods to achieve cost control at all stages of construction engineering project implementation process, and summarizes the problems requiring attention of total cost management in the practical application in construction projects.