Cost Control Model For Iran ARFA Steel Making Project Of China 22nd Mcc Group Corp

EPC project cost control means in a certain project duration, to ensure the achievement of the planned target of the project, the different effective management measures taken to all the costs incurred to the project. Through project cost control, the project is ensured to be completed with due quality and quantity, and the pre-set control target is achieved. Project cost control is one of the key components in EPC project management, which has a direct influence on the economic performance of an enterprise. To improve the cost control ability of international engineering contracting enterprises, the following studies were carried out:First, successful experience was pointed out by analyzing the current cost control situation of international EPC projects. Valuable suggestions were revealed for EPC project cost control for Chinese international engineering contracting enterprises, and important reference was provided for establishment of a more scientific control method in the aspect of cost control of international engineering contracting enterprises.Second, Chinese international engineering contracting enterprises’ current EPC project cost control situation is analyzed with an empirical approach; Existing problems and the reasons for existence of such problems were exposed; useful experience was given for improvement of the control method for project control of Chinese international engineering contracting enterprises.Third, with qualitative and quantitative method, the Arfa Steel-making Project in Iran which was executed by China 22 MCC Construction Corporation Ltd., was analyzed. The problems in cost control of this project, as well as the reasons for the existence of these problems were exposed, which laid the foundation for the improvement of the mode of cost control.Fourth, based on the experience and enlightenment obtained from analysis of international EPC project cost control, and combining 22MCC’s actual situation in international project cost control, a model of cost control for international EPC projects is established based on the target-cost method; on the basis of the improved cost control requirements, a systematic cost control policy was formulated.