Research On The Cost Control In Metallurgical Construction Project Under Fixed Price Contract

In China’s construction industry, fixed price contract has been more widelyadopted. Fixed price contract with the ease settlement, the project amount cost ofprice risk bared by the contractor, less opportunity of contractor claims.The paper explained the cost management of the metallurgical engineeringproject on the fixed total contract price mode by the interpretative structural modeling. Based on description of the interpretive structural model, using the literature search,brainstorming and expert scoring method, list the cost management influence factorsof the metallurgical projects under the fixed price contract. Then apply theinterpretative structural model to analysis the core influencing factors, to find the coreinfluencing factors. Aiming to The core influencing factors in the model, recommendthe technical capabilities of the contractor companies form three aspects:technological innovation, personnel training, equipment upgrades. The principle ofcontrol from the project schedule, content and principles of the three angles to controlthe progress of the project cost management; comparison of prediction methods, tointroduce a Discrete Difference Equation Prediction Model to predict and analyze thecost of the project; from the correction control and project optimization analyzed interms of control measures and means of the construction process of the project.Finally, use the XinYu sheet project to the empirical analysis of the project costmanagement under the fixed-price contract. The empirical analysis of metallurgicalengineering project cost management. Describe the progress of the entire projectprocess on the basis of the cost of the project construction process analysis andforecast, observe that the cost of the project is within the control. Project costs deviatefrom the use of a correction of the method to optimize the project construction processto achieve cost savings and the completion of the project cost management.