Research On The Responsibility Cost Management Of Lawu C1 Road Project

Presently, the competition is quite fierce in the construction market, especially when some large-scale construction enterprises employ the strategy of choosing the lowest bid.However, under the background of decreasing profits, they are faced up with the danger of decreasing profits of each project, even zero profit or loss. What they have to do is to strengthen the cost management and improve the project cost management by a series of efficient means like the establishment of responsibility cost management and responsibility object management system. Responsibility cost management catching more and more attention of domestic scholars, derived from the theory of Objective Cost Management System, has been applied in varies fields, especially in engineering in recent years.Identifying the target cost, dividing the responsibility, making sure of the responsibility cost for assessment and review, and strengthening the check and cost veto are the fundamental processes of responsibility cost management. Lalin-Wuchang C1 Highway Project utilizes the responsibility cost management, including the above-mentioned fundamental processes to improve its internal management.To sum up, responsibility cost management efficiently implements the cost objective,utilizes Activity-based Costing to measure the target cost of the project, employs Earned Value Analysis to realize process control, and distributes the cost saved to people involved in the management of responsibility management, which can stimulate the people’s initiative,help realize the unification of responsibility, power, and benefit of cost management, and achieve the purpose of improving the efficiency of the enterprise and increasing the income of its staff. Meanwhile, the application of Activity-based costing and earned value analysis in the study will provide a useful reference for the responsibility cost management of the project.