Research On Responsibility Cost Management Of Railway Project

Competitive advantage is the core of business performance for an enterprise,while the law of competition is the average rate of profit for industry tending to zero,so one should generally chooses the cost leadership competitive strategy for choice.In recent years, due to the competition mechanism of construction industry marketbeing improved gradually and the bidding price being more reasonable, profit marginof enterprise becomes narrow. Under the premise of ensuring construction quality,strengthening internal management and compressing controllable cost become aneffective means for improving profits space of an enterprise. For a constructionenterprise, in the case that little differences of technical advantage and constructionability lie between rivals and the products are without competitiveness, onlydeveloping by low cost can one enhance its core competitiveness.The project construction cost management is a practical management work. Bystudying on related literature construction project cost management, the author of thispaper found that the existing literature generally have detailed introduction onmanagement system, rules and regulations, etc. of responsibility cost for constructionenterprise, but little attention is paid on introduction about implementation andoperationre, especially for budgeting of the responsibility cost. In addition, duringmanagement of construction project responsibility cost, confirming responsibility cost(planned cost) requires lots of hard, meticulous and scientific work, as well as highrequirement of business personnel ability and responsibility. So if the projectmanagement department puts directly the contract income (budgeted cost) and actualcost into comparison and analysis without determined target profit, and lack ofpreparation and analysis for responsibility cost, it has gone against the principle andsignificance of construction project cost management and responsibility costmanagement, which may eventually lead to an result that the responsibility costmanagement of construction enterprise becomes formalistic under the circumstancesthat the current cost management and system are relatively completed.Linked on present situation and existence problem of responsibility costmanagement for construction project of some enterprise of CRCC, the paper will putforward methods for solving the current problems on project responsibility costmanagement, and give an implementation plan for the weak link (budgeting ofresponsibility cost) for the enterprise, with an expectation to make a contribution tostrengthen the management level of project cost management of constructionenterprise.