Housing Project Construction Cost Management Research

With the continuous opening up of the construction market and constructionof market competition intensified, it is tend for our business to go to the worldthrough continuous improving out competitiveness. In many constructions offoreign multinational companies, most with advanced management experiencesand models, as opposed to domestic construction companies, have a strongcompetitive edge, which requires our China’s construction enterprises in a higherlevel of project management, that is, the construction industry must seize thecurrent market opportunities, adapting to the highly competitive marketenvironment.At present, the level of China’s construction enterprises in the project costmanagement is generally not high. Construction companies often rely on thepursuit of low prices to get the bid at the tender stage, and increase the cost byincreasing the change during the project implementation process. This viciouscycle mode of competition not only harms the interests of investors, resulting inunnecessary loss of investors, but also undermines the credibilit y of the ir ownconstruction and competitiveness, unfavorable for their long-term development.Therefore, the research of construction enterprises in project cost managementhas important practical significance.In the article, we conduct the research from two aspects by combining thetheory and case. In summary of the theoretical part, we use the mixture of thewhole process of project cost management and goal management as an importantguiding ideology for the study, cost risk assessment methods and a variety ofcost management as a research tool. Then we analyze a variety of factorsimpacting construction project cost. In the case of part, we adopt a variety ofmethods to test and analysis project cost management by using the comprehensivebuilding project with a school as an example, make quantitative analysis with tools such as Excel and Yaahp, and finger out the main problems in project costmanagement, which provides reference for the enterprises in the project costmanagement. Paper is divided into five sect ions, as follows:Chapter1, introduction. We mainly introduce the research and discussion ofdomestic and foreign scholars and practitioners about project cost management,the current research status and research results. By the analysis, we describe theresearch method and content.Chapter2, the theory review of project cost management. This chapter isdivided into three parts: target cost management theory, the whole process ofproject cost, project cost risk management theory. Target cost management is acombination of goal management and cost management. The core idea of costcontrol is,in the course of project implementation, based on the goal cost, toconstruct the management system through a series of activit ies in order to achieveoptimum benefits. The whole process of the construction phase of the project costcontrol is in the entire period of project implementation, to achieve reduce costsand increase profits with controlling the actual cost within the scope of the projectcosts, by the use of scientific and rational management tools and methods. Thewhole process of construction project cost management includes cost projections,planning, control, accounting and analysis of assessment. For constructionenterprises, the project cost risk can be divided into internal and external risks. Ingeneral, all the risk factors except the contractor’s risk factors can be classified asexternal risks.Chapter3, the construction cost of the influencing factors. In this chapter, weanalyze the factors affecting the cost. Ac cording to researching the managementstatus of our project cost, we summarize that there are mainly four influencingpoints: The project construction period, materials management, qualitymanagement and project management level.Chapter4, case analysis. We select a middle school teaching buildingconstruction project cost management as a case study, and analyze the projectcost management in the implementation phase from four aspects of the set target cost, target cost breakdown, cost risk analysis and cost-schedule control. We usethe target cost management and the whole process of thinking as the guidingideology, the whole process of cost management processes as the main line, to dorisk analysis and cost-schedule variance analysis, which can solve practicalproblems encountered in the implementation of the project cost management.Chapter5, conclusions and outlook. We summarize the contents of text,pointing out the inadequacies and outlook the future research directions aboutproject cost management.