Research Of Shaybah Project’s Cost Control In Saudi Arabia

Because of the Oil is called by the "black gold" in the world, as well with the improvement of life level of modern people’s, the oil is closely relating to everyone’s life. The petrochemical project’s construction always becomes an focus, but degree of the international petrochemical project construction market rises higher and higher. Due to information transfer become more convenient and rapid, it leads to transparency and intensified competition on prices in international market. With the profit declining and the lower tender price, the cost of project is increasing with the higher cost of labor and materials, shortage cash flow and the other factors like currency, policy and war problems. We lose our advantage. It makes the cost large. So the price negotiation of construction is much more intense.At the same time, the requirement of Civilization construction and construction quality in international engineering construction enhances unceasingly, it causes cost of the project’s quality higher and the survival environment pressure increasing. In order to have a stable position in the market, it is necessary to strengthen management of project cost. The low cost is an obvious advantage in competition, power of enterprise and a essential survival conditions for us. To follow management mode on the scientific cost, clear the contents of cost management, understand the key of cost management, optimize and take effective measures to implement effective management for project cost.This analyzes the structure of project cost and study the detail of the cost controlling methods, such as direct costs and indirect costs. To find out the factors which influence the cost, such as labor, material, contract and so on. According to different circumstances we make the corresponding measures for cost control. To use the effective measures to control the cost within plan. It Increases the success rate of the project, also achieves maximum economic benefits.