EPC General Contract Project Cost Control Research

With the continuous development of today's economic globalization,the deepening of China's market economy,the frnction and the combination of the two make the project's competitive on more fierce.How to control costs more effectively in order to protect their own interests becomes the top priority of the enterprise.Because of fierce competition in the market,the profit space narrower and narrower and the demands for low-cost increased,Low cost gradually becomes the main competitive strategy of the companies.In order to survive in the narrow profit margins,making profits,beating the competitor,the most critical and most pressing thing the enterprises should do is to control the cost of the project.Thus,as a project driven engineering company project manager,through cost control to achieve the maximum economic benefits has become one of the most important management tasks.From the point of view of the project contractor,on the condition of meeting the tender commitment and contract cases,making as much profit as possible has become the standard whether a project is success.From the project's preliminary design,cost estimates,the overall offer in the process of bidding to the implementation of the project cost management and cost control,cost control are inseparable.Due to general contracting company's overall responsibility for contracting projects,quality,safety,cost and other aspects of the overall management of the project design,procurement,construction,commissioning stage work,compared with other traditional project contracting model,now project contracting has more features,and is confronted with more challenges.EPC general contracting projects as a project mode reflecting the economic characteristics of the market,compared with other traditional project model,is more conducive to the realization of high-efficiency design,manufacturing and construction,with a specialization and standardization.EPC is widely used in western developed countries and is one of the mainstream mode of modern project management.With 20 years of engineering construction contracting market development,the maturity of the owners' management behavior,the challenges of the globalization of the international EPC project general contracting market competition becomes increasingly fierce.In view of this paper to gain sustainable competitive advantage,the engineering company begun to respond to the demand and varying degrees,to introduce and absorb advanced project cost management theory and methods EPC contracting projects important means of control is deemed.As the key functions of project management of the EPC contracting,project cost control directly determines project company's survival and development in the fierce competition of the market as a general contractor.But the major companies have mis-understanding of the EPC project general contracting project cost management theory.They are lack of scientific,planned and systematic views in specific practical application.The application of project cost management theory in EPC cont:racting practice becomes a major problem for project companies.This paper from the theory,using the normative research reviews the research the Status and theoretical framework of the project cost management and control of,summarizes the characteristics and cost structure of the EPC contracting project cost control,and analyzis the EPC project cost control workflow and the main content.And case analysis method cost control,work flow,and in-depth explores the WBS work breakdown structure building,the design of organizational structure,responsibility cost management system to establish and limit design including the EPC contracting project cost control the overall program.And the it employs and case analysis method,taking china Chengda Engineering Co.,Ltd.(hereinafter referred to "as the company")Indonesian LABUAN Bay 2*300MW coal-fired power station project management as an example,a detailed analysis to problems and causes in LABUAN Bay 2*300MW coal-fired power station project cost management and control process and makes constructive comments and suggestions.Depth of built WBS work breakdown structure,the overall program,including the design of organizational structure,responsibility cost management system and limits design EPC contracting project cost control and improve the company's cost management system management mode.