Research On Methods And Applications Of Construction Project Cost Control

For the construction enterprises, cost control is the core content of project management,and it is important for them to enhance market competitive power by means of cost control. Asthe construction process of the construction project is complicate and fussy, project cost ischanging all the time during the project tendering stage, the material purchasing stage and theproject construction stage. It can’t meet the needs of the current cost management to control thecost only using the traditional method. By using the modern cost management theory andcombining the theory with practical application of construction project, this paper puts forwardthe model of cost control in different stages, aiming to provide reference for cost control in theprocess of the actual project practice.In Chapter2, the paper introduces the principle of cost control including the description ofthe cost control principle, program, requirements and steps of construction project. Then, itmakes a systematical description of grey prediction theory, control theory of dynamicinput-output and earned value analysis, which is the theoretical base of the following research.In Chapter3, the paper establishes the model of cost control during the project tenderingstage using the basic principle of grey prediction theory and gives a detailed description of itssolution method. Grey prediction theory is based on the system, containing both known andunknown information. The establishment of the prediction model is based on the past andpresent, certain or uncertain information, which gives a prediction of the actual cost and aims toachieve the purpose of the project cost control. It takes the second-stage project of the5thAcademy of Space Technology of the3rd Bureau of CSCEC as an example, predicts the laborcost during the tendering stage and compares the predicted cost with the actual cost. Tested bypractice, it finally puts forward corresponding improvement suggestions.In Chapter4, the paper establishes the model of cost control during the materialpurchasing stage using the basic principle of dynamic input-output model and gives adescription of its solution method. Introducing the elements of investment and time, dynamicinput-output model links the initial investment with the economic growth in the later periodthrough the Inspection of the development of all the items or the same department at differenttimes, which is a kind of mathematical methods researching the interaction principle betweendevelopment and investment. And as above, it takes the second-stage project of the5thAcademy of Space Technology of the3rd Bureau of CSCEC as an example, predicts thematerial cost in tendering stage and compares the predicted cost with the actual cost. Tested bypractice, it puts forward some notable problems during the material purchasing stage.In Chapter5, the paper applies earned value analysis indicator system to the cost controlduring the project construction stage using the basic principle of earned value analysis theory. It is a kind of evaluation method for construction performance which is based on the overallmeasure of cost and implementation progress. It compares the actual cost with the expected costalong with the progress of the construction project So as to achieve the purpose of thesupervision and the feedback of cost budget and implementation progress, and finally achievean effective cost control. Tested by practical project, the model shows is shown its practicalmaneuverability.In conclusion, based on the cost control principle during the whole process, according tothe cost characters of the project tendering phase the material purchasing stage and the projectconstruction stage,this paper respectively provides designs and applications of cost controlmodels using different theories and methods.It can not only improve efficiency of theconstruction cost control, but also reduce the total cost of construction projecteffectively,aiming to provide theoretical guidance and practical reference for project costcontrol management in our country.