Changsha National Food Reserve Storehouse Relocation Project Cost Management Research

With the boost of China's construction industry, the focus of production andoperations management mechanism in engineering construction companies hasgradually been shifted to project management, whose core is the project costmanagement. It is a key point which matters to the survival of engineering constructioncompanies and also its sustainable development as well as an eternal topic forconstruction company's operation and management, as to how engineeringconstruction companies, based on the project management, and on the ground of highproject quality and guaranteed construction safety make high profits in such ascientific and efficient cost management.This paper will have a detailed research and discussion on project costmanagement theory by both theoretical and practical methods, with the research objectthe relocation project of Changsha National Food Storehouse, bid by ForeignConstruction Co., Ltd. This paper firstly by analyzing the contemporary situation oncost management in the relocation project of Changsha National Food Storehouse,reveals some problems, such as, the one-sidedness of project cost management, itsinappropriate methods, and its out-dated styles, lack of scientific grounds on costcontrol, poor cost control, ignorance of management and control to time limit cost andquality cost and so on. Then, a thorough analysis is made to the leading factor of theproblem that is a lack of systematic cost management concept and of improvement tothe “responsibility-right-profit” cost management system, with its weak infrastructureand inadequate internal control system. Therefore the last of the paper raises a projectof responsibility cost management to above problems, which is focused on cost control,including cost predication, cost accounting, cost analysis and examination.Implementation of the project cost management scheme mainly includes costmanagements before, during and after the project, as well as management of time limitcost and of quality cost during project. Its safeguard methods include innovation andimprovement of project management system, improvement of project cost system withproject manager as the heart and establishment of training system for staff,enforcement to the informationization of project cost management, and other plan'ssuccessful measures.