Cost Management On Building Installation Projects In GXJG Company Based On Total Cost Management

The high profits in the construction and installation projects, have been the same object for industries to pursue. With the gradual improvement of China’s market economy, the competition is more and more fierce, and it is important for project’s cost management which can affect the competitiveness of enterprises directly. And cost management is not only the key to success of the project, make profits for company, but also for the long-term development.This paper takes the Guangxi Construction Engineering Group Second Installation and Construction Co, Ltd.(GXJG Company) as an example, based on the analysis of the mode and method on cost management in existing projects, then to find the problems in cost management. Also I considered the trend of project’s cost management in modern times, moreover, fully apply the theory and method of project’s cost management to GXJG Company, and verified it by the actual project application.Total cost management(TCM) theory has been produced for a long time, but from the time of introducing to domestic, it is rare for us to apply to the construction projects systematically, so this article will focus on the practical application of TCM theory. This article can be divided into two parts, theoretical and empirical. In the theoretical part, firstly elaborated the basic theory of TCM. And analyze the problems and causes of the problems in cost management through the existing situation in GXJG Company, Also I highlight the general idea of applying the theory of TCM into practice at the end of theoretical part. In the empirical part of this article, through a typical project cases, I will introduce the actual process that the theory of TCM applied on projects, I use the three phases of project planning, executing, closeout as the time line, combine with four sub-theories of the whole process, total factor, total risk and total team in TCM, to detail the cost estimating, cost control, cost accounting, cost management.This paper puts a view, which is applying the TCM theory to the construction projects, as well as the actual utilization success case in the GXJG Company, all of that not only can provide a certain theoretical basis for the companies’ cost management, but also offer some new ideas for the industry in the construction and installation projects.