The Application Research Of Earned Value Method Based On The Pony Garden Project

With the development of the construction industry, construction enterprises are faced with fiercer competition environment. This requires construction enterprises to enhance their core competitiveness as soon as possible. Meanwhile, construction project cost control in the construction stage is the principal approach to increasing profit. It is of great significance for improving the comprehensive cost management of construction enterprises. However, most construction enterprises use simple and rough cost control method. The outcome is not ideal. As a result, profits are compromised and economic benefits are lost because of rampant cost. In order to enhance the core competitiveness of construction enterprises and to improve the profitability of construction projects, the priority for construction enterprises is to find an effective, advanced and scientific method to guide the cost control in the construction stage.This paper first introduces the related theory in construction project cost control, followed by the analysis of the principal, content, rules and basis of construction project cost control. With the analysis of factors affecting the cost control in the construction stage, this paper describes the main content and process of construction project cost control and finds out the major approach and scientific method of cost control in the construction stage.Secondly, the paper introduces the basic theory of Earned Value Method(EVM). In addition, the paper elaborates the application principals and theory basis of the advanced project management method by analyzing the application significance, the advantages and disadvantages, and the parameter analysis of Earned Value Method. The paper also conducts earned value analysis on construction project costs while introducing the content of a baseline plan and the reasons for cost control deviation. At the end, this paper focuses on the prospects of Earned Value Method in construction project cost control.Lastly, the paper combined the theory with the example of the Pony Garden Project and applied Earned Value Method to the construction cost control process. The project example demonstrates the process of cost monitoring and proposes the application countermeasures of cost control based on Earned Value Method.Along with the increase of overseas construction projects in Chinese construction enterprises, the core competitiveness in the global market is mainly embodied in the ability of cost control. At present, there is a huge gap between the Chinese construction enterprises’ cost control and the advanced international levels. The application of Earned Value Method will help construction enterprises carry out the effective cost control in the construction stage and realize the joint dynamic cost-schedule control. Meanwhile, the method uses scientific measurement, corrects the deviation of cost timely and provides reasonable basis for effective cost control.