Research On Dynamic Cost Control Of Construction Enterprises Based On Earned Value Management

Currently,the market environment construction enterprises are facing is undergoing tremendous changes with fiercer market competition;the owner's demands are increasingly stringent,quality requirements are unceasingly improving;the constant shortening of construction period and the compressed net profits of construction enterprises poses a threat to the profitability of the construction industry.In this kind of adverse circumstances,construction enterprises must more emphasis on the importance of the cost.Cost control of engineering project has always been a significant task project managers should take into special consideration,which directly affects the success or failure of the construction project.Therefore,for the large construction enterprises,adopting effective project cost control methods is no longer a new concept,but a vital link.The research purpose of the thesis is to explore what kinds of cost control method the construction enterprises adopt can more fit in the industry characteristics and more effectively conduct cost control.The study finds that the traditional cost control methods in some aspects is not very suitable for the construction industry,because the construction project is a special product with time-consuming operation and large amount of money,the work of which cannot be repeated,and therefore it is necessary to find out the problems in the shortest time and immediately correct them.While the traditional cost method more focus on the post-action control,and therefore it cannot achieve the dynamic control,easily causing large deviations of construction project cost in the construction process which cannot be recovered.Therefore,the thesis introduces the basic concept of earned value theory in the construction project cost control,elaborates earned value method and its theory,and compares with the traditional cost method,highlighting the advantages of earned value method focusing on the in-process control and dynamic control.At the same time,the thesis points out the current defects of earned value method,and optimizes the earned value theory through the improvement analysis of non-data factors.In addition,the paper also applies earned value method to Z project of HX company for experiments,and taking the application of actual data of the Z project of HX company as material,divides the work of Z project several steps to analyze three parameters and four indexes of earned value method each working phase of Z project utilizes,and applies the analysis results of the previous phase to the next phase and timely adjusts cost or time in the next phase in order to reverse deviations.Through the application of earned value method in the actual project,the thesis improves the orderliness,controllability,scientificalness and practicability of project cost control.Mass data shows that earned value method is a management tool suitable for construction project cost control.Meanwhile,the study extends the application range of the earned value method from the original application in the electric power and water conservancy project to the construction industry,which has certain reference and enlightenment for domestic related building enterprises to utilize project cost control to promote the earned value method.It is the reality demand for the construction enterprises which are in low profit operation to implement the projectcost control based on the earned value method,and thus enterprises should continuously explore in practice,summarize in exploration,choose the project cost control mode suitable for enterprises and improve the method of earned value management system,and thus the them can improve the level of cost control and enhance competition ability,so as to promote the benign development of the enterprise.