A Study On Improving The Whole Process Cost Management Of KC Company's Foundation Engineering Projects

As an advanced cost management theory,life cycle cost management theory,which includes the project decision-making,design and construction,completion,operating phase,has been applied in the world for decades.The whole process cost management,based on life cycle cost management and project management theory,has been improved by Chinese scholars over 20 years of practice.However,nowadays,most enterprises in our country still lag behind in the cost management,featured by blind-bidding,lack of progress control,short of files and data management,resulting in cost overruns,loss of risk control,settlement dispute.For the differences of the construction cost management scope between the construction enterprises and engineering enterprises,there can't be a classic whole process cost management or life cycle cost management in engineering enterprise.This paper aims to fulfill the following three tasks: First,to make an analysis on conditions of enterprise itself.The KC company that is in the transition from public institution to SOE has to become more competitive by improving management,furthermore,they should choose the foundation engineering projects as the typical cases to improve their cost management.Second,based on the analysis on Life Cycle Cost Management,Whole Process Cost Management,Total Cost Management,to determine the most appropriate Whole Process Cost Management and apply it in engineering projects.Third,to propose improvement methods according to engineering projects of KC company.In addition,this paper extends the application of the theory from construction to cost management regarding to tendering strategy,risk control,contract management,management of materials,labor,data,project schedule,project completion and maintenance and their corresponding regulated prices,tendering prices,contracted prices,construction budget,the application and payoff of interim payments of relating work of the bidding and tendering,contract signing,construction preparation,actual,construction,so as to help KC company to improve cost management efficiency,and to realize the maintenance and appreciation of state-owned assets by establishing the whole process cost management mechanism.