Research On Cost Control Of Construction Engineering By Earned Value Method

The profit and long-term business of enterprise are determined by successful project cost control directly. The method of project cost control is not only one of the most important scholars in the field of research, but also is an urgent need to be used in practice by construction enterprises. Therefore, the researches in this paper on using the earned value method to control the cost of construction project as the follows:First of all, the paper introduces the composition of engineering cost and the theory and method of the cost control, and the earned value method is one of those methods which is commonly and widely used. Then the basic parameters and the scope of application of the earned value method are summarized which expounded as a theoretical foundation for the application of the earned value method in the later article.Secondly, the paper put forwards the earned value parameters that can reflect the resource cost, engineering changes and quality levels changes. Obtaining earned value parameters and indexes that reflect the artificial, material and machinery costs and engineering changes through logic reasoning. Calculating engineering quality level through method of fuzzy comprehensive evaluation, therefore obtaining the quality earned value parameter. Making analysis that combining new parameters with the traditional parameters can reflect the situation of engineering cost accurately, and will be easy to find the main factors affect the cost so that corrective measures can take appropriately.Finally, applying the earned value method combined with the new parameters to an engineering example, for the analysis and control of project cost. A separate settlement construction project is taken as an example to do the earned value analysis. In this example, the earned value parameters and indexes that represent resources cost, engineering changes and the relationship between quality and cost are calculated. In every examination point, cost condition and the main factors that cause the cost fluctuation are worked out through analyzing the new parameters and the traditional parameters, in order to provide the basis for rectification. The final cost deviation rate of the construction project is 7.29%, which is in the allowable deviation range, therefore, the project cost control in construction stage is successful. Through this case can be proved that the new parameters in combination with the traditional parameters can reflect the cost of the project more effectively, which will help project managers to take correct measures on cost management.