A Study Of Materials Cost Management Of Construction Enterprises

ABSTRACT:The construction industry is the pillar industry of the national economy, its level of development directly affects the country’s economic development and social stability. The rapid development of economic globalization, the growing internationalization of the construction market for construction enterprises has brought more opportunities, but it also brings more challenges. Although recent years, China’s construction industry has been rapid development, the construction industry, but the competition is more intense, more low profit margins, many companies in order to embrace the project, had to take a low bid approach.For in such a competitive environment can be invincible, construction enterprises gradually from how to make better use of new technology, new equipment to improve labor productivity in the past to change management, to strengthen the management of the project cost up to change. Management to be effective, enterprise growth to become one of the effective ways to profit margins. Construction companies on the individual project cost raw materials, equipment, account for more than60%of the total cost of the construction project, which is considered the most profitable part of the mining potential, it can be said supplies material costs in the cost of living re-engineering projects re-location is the key to project cost management. Construction companies are now concerned about the cost of materials to minimize how to ensure the construction safety, ensure the construction quality of the premise, to improve efficiency in the use of materials, to enable enterprises to gain new profit margins, improve their market competitiveness.Since the construction business is capital-intensive, material consumption-oriented enterprises, the construction process requires a lot of manpower, material and financial resources. In recent years, despite the construction companies have made great progress over the past in terms of construction technology and the introduction of new technology and equipment, but has not changed is the large number of inputs of raw materials during the construction materials, mass consumption goods and materials needed, mechanical a wide range of devices, different models. Faced with such complex materials, equipment, supplies only a scientific and effective cost management, without prejudice to the normal construction of the production costs to a minimum. Based on this, the thesis had worked for A construction company, for example, the combination of theory and case method, material cost control from the perspective of the current situation and problems A construction enterprise cost management to analyze materials, mainly from the materiel procurement and inventory management to study two aspects of the analysis and proposed targeted optimization strategy.