Research On Project Cost Control Of Construction Enterprise Based On Earned Value Method

Looking at the construction market,the competition among construction enterprises is increasing day by day.There are many factors lead to the continuous compression of the profits of construction enterprises,such as the Poor management of construction companies,the increased cost on labor and material and so on.It undoubtedly puts forward new challenges to the construction enterprises to control the cost of the project.The construction enterprise takes reasonably realizing the profit maximization as the goal.The good cost control can squeeze out more profit space for the enterprise,thus expand the reproduction and improve the market competitiveness of the construction enterprise.Nowadays,most construction enterprises in our country have some problems,such as poor project cost control,low management level and so on.The traditional cost control method cannot satisfy the demands of construction enterprises.It is very significant to use advanced cost control method to control the cost of construction enterprise projects.This paper introduced the concept of construction project cost control and earned value as well as its application process.It is found that there are problems in the cost control of the construction project through carrying out the investigation on the construction project of Z company,among which the primary problem is the lack of advanced cost control methods,it separates the cost control and schedule management of the construction project,it led to a loss on the project in the end.The Earned Value is a more targeted,timely and continuous method,which can combine the duration and cost of the construction project,make it easier for managers to understand the real reasons for the difference when the actual and planned completion of the project is different,so as to adjust and control the remaining tasks in the project.This paper further discusses the cost control principle of Z company which is based on Earned Value,it establishes the organizational reconstruction of Z company which is based on Earned Value.In construction projects,the key path often plays a decisive role in the construction progress.In recent years,experts and scholars at home and abroad have discovered the defects of the traditional Earned Value through the study of the Earned Value.On this basis,it puts forward the distinction between the key routes under the traditional earned value method and the non-key routes,so that the Earned Value can more realistically reflect the actual situation of the project.However,the combination of critical path and earned value method is rarely applied in practical projects.Therefore,taking S project C area project as an example,this paper finds out the key path of the project by drawing the double Code network plan diagram,calculates the Earned Value on the key path and the non-critical path respectively,finds out the real reason of the deviation of cost and progress,puts forward the corresponding improvement plan,it finally perfects the safeguard measure of the Earned Value.On the one hand,it can clearly understand where the advance or delay of the project schedule,cost overruns or savings come from.On the other hand,it is possible to achieve synchronous control in terms of project cost and schedule,while reflecting the difference in key levels between different jobs,avoiding the occurrence of cost control in the implementation of the project because the critical path earned value is obscured by the non-critical path earned value.The overall deviation situation.This paper further proposes the safeguard measures to improve the earned value method.It is proved that when the construction enterprise controls the project cost,it is a feasible cost control method to use the network plan chart to find out the key path and then use the earned value method,which also provides the experience reference for the cost control of other similar construction enterprise projects in our country.However,this method also has certain limitations,such as not taking quality factors into account and this method is difficult to apply to all links of construction projects,which is the direction of future research and efforts.