Study On Cost Management Of China Railway Tunnel Group Construction Project

Great changes have taken place in the China construction industry since the reform andopening policy. The construction market competition is becoming increasingly fierce. Thetraditional cost management method is difficult to meet the need of cost management,resulting in the extremely compressed economic benefits space of the enterprise, and it hasseriously endangered the survival and development of the construction enterprises. Enhancingthe construction project cost management is the core issue for the construction enterprises.Therefor，study on construction project cost management has very strong theoretical andpractical significance.Under the condition of construction industry increasingly fierce competition, toimplement the construction project cost management effectively, and realize the goal of profit,the construction enterprises must establish the consciousness of cost in the enterprise. Makingusing of the modern management means, the enterprises can determine the suitable costmanagement method, to enhance the profitability of enterprises, and improve the competitivepower of enterprises. Thus, the paper chooses the China Railway Tunnel Group as the studyobject. The paper starts from the comprehensive analysis on the current situation ofconstruction project cost management for the China Railway Tunnel Group, focusing on theanalysis of the existing problems in the construction project cost management process, andmakes a thorough analysis on the reasons. On the basis of the analysis, combined withfeatures of the construction enterprises and the practical need for the cost management ofconstruction project, the paper employs the methods of fine cost management theory, strategicpositioning analysis, driving factors analysis method, and value chain analysis, to establishthe fine cost management system for the construction project. Finally, the paper carries outdetailed and deep analysis on the case on the BAOLIN railroad TJ-D project, to determine the feasibility and applicability of the proposed method. In the increasingly competitiveenvironment of Chines construction market, the fine cost management system for constructionprojects is feasible and practical, and it is an effective method to solve the existing problems,improve the economic benefit, and cultivate the kernel competitive power of the constructionenterprises in China.On the basis of using predecessors’ research achievements for reference, the paper makesthe research and investigation for the China Railway Tunnel Group, proposing the suitablecost management system to meet the need of the China Railway Tunnel Group and theEffective measures. It is hoped that this paper can offer some reference to the constructionproject cost management of the other construction enterprises.