Cost Control Study Of The Small Construction Projects

Malpractices are commonplace in small construction projects which are closed related to social well-being. For instance, many projects are implemented by self-employed constructors which are affiliated with qualified construction enterprises or relevant professionals with license to meet the requirement for qualification while qualified construction enterprises charge those self-employed constructors for affiliation as the enterprises lend the license to them.The root cause of these malpractices is the loss of competitiveness for officially-registered construction companies. To ultimately change such situation, it is quite necessary to review the costs of small construction projects for different construction companies and find out the key cost factors which lead to construction enterprises’failure to compete with self-employed constructors.It is found through review that the major cost factors include huge human resource costs of the head office and managerial staff (including technical staff) of the construction companies, inability to further reduce costs involving the procurement of labor, materials and equipment and to narrow the gap in competition with self-employers in spite of the companies good reputation. Construction companies need to re-adjust their thinking of project monitoring to find out more cost-effective way of project monitoring.To ultimately solve the problem of costs for construction companies, efforts should be made in six aspects, namely,○1Innovative organizational structure.○2Integrated management system○3Cost control○4Human resource management○5Procurement management○6Risk management. Measures in these six aspects should be taken side by side to promote and complement each other and in the end they would be woven into a web of cost control.Such a web would increase management efficiency, reduce in-direct management costs and finally great improve construction enterprises’ overall ability to make profit.On the whole, construction enterprises are fully able to resolve their weaknesses in cost controlthrough self-improvement and hence exert their strengths to take lead in future competition with self-employed constructors.