Research On Cost Control Of Construction Engineering

Construction industry is one of the three pillar industries of the national economy, it isa very important material department of national economy, and it is related to the wholecountry’s economic development and the improvement of people’s living standards. Atpresent, our country is in economic transition period; construction is also developingrapidly, and makes huge contribution to the country’s economic growth. Currently, ourcountry’s construction market has become saturated increasingly, the margins do notincrease with the profit and production, construction is facing the increasingly fiercecompetition both from home and foreign market. At the same time, the constructionenterprises want to be in invincible position in the new round of competition, then theyhave to have the ability to adapt to market changes and cultivate their own corecompetitiveness, however the core competitiveness for them is the low cost strategy. Whenwe proceed the general analysis of the construction project, we found many problems inthe construction project; cost control becomes the most critical problem, if we cannotcontrol the cost effectively in time, the prospect of the construction enterprise will be moreworrying.The theoretical basis of this paper is cost control and construction project cost control,on this basis, we selected the company S project A as the case to study. First of all, wemake overall introduction of the company S project A, then we analyze the original costcontrol system of project A. we use earned value method to analyze the effectiveness of thecost control. Using this method, we found problems in the project cost control anddiscussed the reason of the problems, thus we find the main problems in the project A costcontrol system are: there is no whole process control, cost control concept is out of time,no informatization applied for management, the project cost control planning and systemare not complete and so on. To the problems mentioned above, this article carried on athorough research. The study focuses on how to carry out the construction project costcontrol process and the specific improvement measures. Change from the concept of costcontrol, improve the quality of foundation work, improve the control system, andstrengthen information construction in order to propose specific measures of improving thecost control system.In the background of building construction, this paper selected the A project ofcompany S as case to study, starting from the actual situation of A project, probes into the problems in A project cost control, combine with other factors in the actual constructionproject cost control, explore a scientific, effective method which can reduce the cost ofconstruction, so as to ensure the project carried out in accordance with the value of theexpected costs and within the time plan of construction, complete the project Aconstruction smoothly through cost control route and progress control. Improve theeconomic benefit of this project and to put forward a set of feasible and perfect cost controlsystem for the future project of the company S.