Study On African X Project’s Construction Cost Controlling Of H Corporation

This paper describes a detail study of X project’s construction cost controlling, which is a highway construction project in West Africa. With the fast growth of China’s economy, economic co-operation between China and Africa is increasing in all areas, alongside the traditional aid programs,such tactics then encourage major players such as H Corporation to pursue internationalization strategy as confidence grows.A large number of Chinese companies take actions to Contracted African projects in infrastructure development, including port, railway, highway and telecommunication networks, In order to achieve their internationalization strategy. Chinese companies have taken a lead on infrastructure development investment. While Chinese companies have invested heavily in Africa, they have not always had a smooth time. According to statistics, only 1/3 projects can profit. Chinese companies have faced criticism for their handling of sustainable development in Africa, and their ability to delivering on earnings expectations in overseas projects. There is inherent attributes like long cycle, large amount of investment, complicated influential international factors and so on in construction projects. As a result, How to control the construction project cost to maximize profit is what earnestly cared by the operators. The domestic researches on the overseas project are focused on the project management system construction, and literature research is still focused on the theoretical exploration. Some researchers choose one project as their research object, but the construction cost controlling of the project is lack of specific and comprehensive feasible measurements. This article takes West African X projects `s construction cost controlling of H Corporations as study object. And supported by datas collected from X projects `s construction site. Firstly introduce H Company `s cost controlling during the development, then analysis some factors that hinder effective construction cost-control of X project, the mainly part of this article uses Work Breakdown Structure and Cost Breakdown Structure to ensure the main factor of the cost& expense, such as laborage, material fee, machine fee, and so on, and study the cost controlling steps of X project, using earned value method to evaluate the effects of cost controlling. Finally summarizes effective experience and give some useful ways to change the negative aspects in cost contorting.