Cost Management Research Of Oversea EPC Power Station Project

With the development of economic globalization, the EPC general contracting project mode gradually held the dominant position of the engineering construction in the world. Under the pressure of domestic market saturation, more and more Chinese enterprises gradually go abroad to rob the international market, and successfully occupy a certain market share. However, comparing to the international famous contractors, there is still a certain gap. During the executing process of EPC general contracting project, domestic enterprises focus on how to use a more effective cost management to reduce the project cost and improve the competitiveness of the enterprises in the global market. Especially how to use cost management to improve market competitiveness and the profit of enterprise economic benefits becomes to consensus. Therefore, the paper takes oversea power station of X chemical design institution as an example to research related problems about how to strengthen the project cost management. Therefore, as an international engineering company, how to use cost management to improve the market competition, occupy the market share and maximize economic benefits, has become one of the most important management work.First of all, the paper reviews the history of cost management theory and introduced the present situation of the project cost management theory. Secondly, the paper demonstrates project management mode of the X chemical design institution and cost management contents through investigation and study. Through efficient project team operation mode, a chemical design institution establishes the matrix mode of project management, making the project cost management concretely implement the four stages into the process of project implementation. Then, using Bangladesh Chandpur power station project in the X chemical design institution as an example, lists the project finance income and cost data, and deeply analyzes the component of each project cost in order to find out the advantages and disadvantages in the process of the project execution. The advantage of project management includes:give full advantages of design institution, that is design to optimize global; Procurement stage of formal management through detailed rules and regulations process to plan procurement process in order to improve efficiency and avoid risk cost; Cost budget of the project management by project management expenses budget before the project execution; Strictly control the cost of the project management to achieve maximum elastic compression project cost target; The standardization of the project payment process through strict examination and approval process to increase the rationality and normalization about the use of funds. The weaknesses are that traditional project management lacks the experience of professional construction management and bad supervision to construction subcontractors. As a result, construction cost increases and project schedules lag. Finally, the paper uses five aspects to further strengthen the project cost management work in order to lay a solid foundation for improving corporate profits.The main contribution of the paper via the combination of literature review, case study method gradually introduces the theory of project cost management into the enterprise actual operation. Through concrete elaboration and analysis of project about overseas power station in the chemical design institution, summarizes the advantages and disadvantages in the process of project implementation, brings a proposal about the current situation of enterprise project execution plan to optimize enterprise project cost management model and expects to help domestic enterprises better implement the strategy of "going out" on the road. However, because of the limited theoretical level and practical method, solutions still have shortcomings. How to practically apply the project cost management theory to the current overseas EPC power plant project is a huge job.