Research On Cost Management Of Small And Medium-sized Engineering Project

The development of the construction industry has always been an important factor supporting the development of China’s economy.With the deepening of reform and opening up policies,the competition faced by China’s construction enterprises will become fiercer.The further improvement of the overall project management of construction enterprises is more important,and the improvement of project management is often based on the improvement of project cost management.However,at present,only large-scale construction enterprises in China pay more attention to the application of project cost management theory and the improvement of their own project management.Small and medium-sized construction enterprises usually adopt traditional rough management methods with low management level,which makes them fall behind in the long-term.As the market develops,the use of new theories,new technologies and new materials will benefit the construction companies to make huge changes in the cost management of future projects,while traditional project cost management methods will not solve new problems;on the other hand,due to the continuous improvement of environmental protection and building quality requirements,the various expenditures of small and medium-sized construction enterprises will inevitably increase,and the difficulty of cost management will continue to be amplified.Therefore,how to improve the work of cost management of small and medium-sized construction projects is getting more and more important.At present,the conditions of large-scale construction enterprises at home and abroad are relatively mature and the organizational structure is perfect.Such enterprises attach great importance to the research on cost management theory,and the conditions for the transformation of theoretical research results into practical application methods are relatively mature.Domestic and foreign scholars also focus on study the cost management of large-scale construction companies,but there are few studies on the cost management of small and medium-sized construction companies.This paper takes small and medium-sized construction enterprises as the main research object,and combines the common cases of relatively small and medium-sized construction project management,analyzes the problems existing in the case engineering cost management,and proposes measures for optimization in different stages from the perspective of whole process of project operation.The optimization strategy has certain guiding significance for the project cost management of the same type of construction enterprise.This paper is divided into six parts.Based on the background and significance of the topic,the paper summarizes the research ideas of the full text.Then,through studying the current project cost management literature,it sorts out the current mainstream cost management accounting methods at home and abroad as well as domestic and foreign scholars and research status on cost management issues of engineering construction projects.Starting from the third part,the article summarizes the key factors affecting project cost management,and through analysis and arrangement,from the perspective of the whole process cost management of engineering projects,grasps the appropriate cost management theory and believes that the current cost management of small and medium-sized engineering projects should be starting from the whole process of the project,the project cost budget target is determined by the target cost method in the project preparation stage.The cost budget management method is combined with the project schedule management and controlled through the earned value management method during the project implementation phase to achieve effective cost control during the project implementation process.In the later chapters of the paper,a detailed analysis of the Company A’s engineering projects is carried out,and the current cost management status of small and medium-sized construction enterprises is summarized point by point.The cost of the case project is used through the combination of the target cost method and the earned value management method.The management problem has improved and redesigned the management plan,corrected the original unreasonable cost budget target of Company A’s project,and found the management loopholes in the original project that caused cost waste due to poor project management and control,and verified the target cost.The rationality of management and earned value management is used,and the feasibility of its application in the cost management of small and medium-sized engineering projects is analyzed.Finally,the paper summarizes the common problems in project cost management of small and medium-sized construction enterprises,and puts forward the measures that most small and medium-sized construction enterprises should take in cost management,which has general guiding significance for project cost management of such enterprises.Project cost management for construction companies is recommended in areas that are worth exploring in the future.