Research Of Cost Management Of Construction Enterprise Based On Value Chain Theory

In China, construction enterprises are in a perfectly competitive industry, the traditionallabor-intensive industries, both to improve economic efficiency, and improve the quality ofdevelopment, a good cost management system is essential.This article studies on cost management of construction enterprises at the view of theperspective of the value chain. First of all, through the vertical and horizontal value chainanalysis outside the enterprise, the enterprise was in the middle of the construction industry,from a strategic perspective we studies on the transaction costs and management of the membersof the inter-enterprise in Value Chain, we find cost reduction opportunities for all aspects of theexternal value chain in view of lower transaction costs, enhance competitive advantage of theenterprise. Secondly, through the analysis of Enterprise Value Chain, we firstly determine theactivities of project value chain in the whole process, so we analysis the operating levels of thebasis of projects, according to the method of work motivation we operate project costs andreasonable imputation and allocation of the cost of the project calculation more reasonable forthe company’s tender offer follow-up project to provide basis for decision making. Finally, withthe construction company example, the analysis is based on the value chain cost managementsystem in the building business applications; from external transaction costs and the cost of theproject both reduce operating costs, the cost advantage that enterprises enhance their corecompetitiveness.In this paper, the author was in the application of cost management based on value chaintheory in the construction business, from the view of corporate strategy point to in-depth projectlevel within the enterprise, it can be said that the cost management of enterprise conducted acomprehensive study, we hope that through of the analysis of the example, the constructioncompanies can have some help.