| Along with the rapid development of global economic integration, China is also gradually speeding up its pace of implementation of "going out" development strategy. As a large scale state-owned construction enterprise, China Railway No.10 Engineering Group Co., Ltd (hereinafter called "China Railway No.10"), bearing its responsibility and adhering to its pioneering spirit of "Pursuit of Excellence, braveness to stride leap", has successfully entered into South American market and undertaken such projects as North Plain Railway project, Iron Ore Trade project and FMO railway project. FMO is a project with largest contract amount that China Railway No.10 has ever got in Foreign market. High quality management on the project, expenditure control in success, making excellent project, setting up CREC brand and further expending the adjacent market in South America, holding new areas in construction are all important part of China Railway No.10 overseas development strategy. Therefore, how to develop and promote expenditure in FMO project plays an very important role in the process of implementing the Nation’s "going out" strategy.Taking FMO project cost control problem of Venezuelan Branch Company of China Railway No.10 as its actual study background, this paper conducts in-depth study on project cost control and management with main study contents as follows:Firstly, based on project management theory, this paper mainly reviews project cost theory and cost control contents and methods and analyzes the current status of international project management.Secondly, based on the review of project cost control and management theory, this paper focuses on the study of FMO project cost control and risk analysis, deeply analyzes the project’s current status and such management elements as design, labor service, goods and materials, construction machinery, engineering subcontract, inflation, and finally finds currently existing problems and risk points.Finally, based on cost control and management theory, aiming to the deep analysis of FMO project cost control and risk and combing the national status of Venezuela, this paper conducts the cost control of FMO project from the aspects of duty cost management, Venezuelan labor recruitment management, subcontract management, goods and materials management, in order to obtain optimal cost control measures.Through deep study on FMO project’s cost control risks, this paper proposes corresponding countermeasures. By applying cost control strategies, FMO project department acquires obvious effects on economic benefits, talent training, corporation image and market development, which has provided referable experience in project management especially that abroad. |
