Study On Y Project Cost Control Of The Construction Enterprise

With the rapid development of China’s economy, productivity has been greatly improved, thus the process of urbanization accelerated significantly, which offers great opportunities for China’s real estate industry, optimize the environment of construction enterprises in China. Construction companies have enjoyed great development. However, the prosperity of an industry also means fierce competition. Especially under the circumstance that Chinese economic growth is slowing down, the booming of supply and demand in construction enterprises have been ceased. Thus only if construction enterprises constantly strengthen management, enhance their own strength and control construction costs, can they survive in current competitive construction business environment. Cost control of construction project is a very important part in project management research, it even has an impact on the subsequent development of enterprises and overall efficiency of the construction. An important determinant of the competitiveness of enterprises is the level of cost control. Therefore, the urgent problem to be addressed for current construction enterprises is how to strengthen the control of the construction cost in projects.This paper introduces the research background, significance and status of construction enterprise project cost control at home and abroad, and then elaborates control theory, system theory, project cost control theory and earned value method of construction enterprise project in detail. On this basis, taking Y construction project for an example, it introduces the basic situation of this project, analyzes project cost control with the earned value, and identifies the problems of cost control in first stage of Y project. It shows that investigation is not in place during construction preparation phase, poor geology results in increasing workload and time spent, cost elements control in construction process is not enough, so that the material cost, labor cost, and indirect cost overruns; it lacks incentive mechanism of combining power, responsibilities and profits in construction process and so on. Aiming at the problem above, measures to strengthen the project cost control in stage two of construction firm Y project is pointed out. In this paper, the proposed measures of cost control are practical to general construction companies, which is the purpose of this study.In this paper, the research method combines theory and cases. After the study of cost control of construction firm in Y project, come the conclusions as follows. The implementation of cost control in whole process is the key point for construction project cost control. Practice of Y project proved that earned value method can effectively track project costs and detect deviations in project promptly, strengthening material costs, labor costs and indirect costs control is the emphasis of the construction cost of the project, and establishing incentive mechanism, combining responsibilities, power and profits in construction companies helps to reduce the cost of construction projects.