Cost Control Model For International EPC Project

Since the reform and opening up, with the rapid and stable development of China’seconomy, the enterprise’s own management level unceasing enhancement, our countryengineering companies to participate in international project contracting and expandingthe size of the field. The development trend of enterprises in the fierce competition in theinternational market to maintain the development of long-term advantage and maintainstable, the level of cost control is the key, the cost control of engineering project hasalready become an important management an indispensable means of contemporaryinternational engineering contracting enterprises and irreplaceable.This article embarks from the domestic and foreign research present situation of costcontrol, statistics of China’s international engineering contracting enterprises ranking,contract amount and enterprise profit rate data, compared with the advanced internationalengineering contracting business data, the China and advanced foreign enterprises in thecost profit rate of the gap, so that domestic enterprises in the project cost control the levelis still relatively low. In addition, the cost control theory of BIM advanced (BIM),analysis of the current in the international EPC project the cost control mode of domesticenterprises, analysis of the current domestic enterprises to adopt the method of costcontrol, introduces the main contents of the project cost control theory, thus thetheoretical level of the project cost control of our country development level is relativelylow; analysis of target cost method and its application in the international engineeringEPC of general contracting project, points out the target costing in the specificimplementation of the general; through the implementation of target cost method, tosolve in the international engineering contracting companies in cost control aspects of theproblem, do project cost plan, goal, process control based on the cost analysis, moreintuitive, and the cost of area of responsibility clear, easy to implement the responsibilityof cost breakdown and examine the responsibility of the job performance, combined withMalaysia pulp mill project of East Malaysia Co Ltd, analysis the current question ofprojct, analysis of target costing in the specific projects in the application. Introduce the application of earned value management of project performance appraisal, andsuggestions for implementation in a practical project. Based on these theories, in view ofthe current executive East Malaysia Co. Ltd. Malaysia pulp mill project from theorganization structure, design, procurement, construction, human resource management,performance appraisal and so on each link cost control model design, proposed theimplementation of the project began to use the quota design method in the design stage,methods of target cost, the whole and partial cost control project, performance appraisalapplication of earned value management comprehensive means, to achieve effectivecontrol of large scale international EPC project cost.