Study On Construction Cost Management Control Of A Highway Reconstruction And Extension Project

The competition in road construction market has been becoming fierce with the continuing development of market economy and increasing scale of investment in construction industry by the country.It demands solutions for how a road construction enterprises effectively cope with the challenges caused by high competition,convert it to a chance of development,maintain the sustainable development and meanwhile elevate its own competition advantage.Cost management of road construction projects is one of the core elements of project management and an integrated performance of the enterprise management.Through cost management,enterprises are able to complete construction projects in minimized cost at assured quality and timing while improving the economic benefits and competitive advantage.First,this article summarizes the basic theories of construction cost management,introduces the basic concepts,contents,structures,categories,key processes and control procedures of construction project cost management.Second,it analyses the problems existing in the cost management of road construction projects including:insufficient attention,unsuitable organizational structure design,insufficient implementation of key cost management process,inadequate cost control,outdated cost management methods and the consequent problems in cost control and management caused by abovementioned reasons;Third,against the problems,according to the ideology that enterprises must strength the compilation of ration,procedures control,project cycles and control elements to establish organization,and complete the cost management institutions from vertical and horizontal management,proposes an integrated systematic strategy.The cost management system is established on the mechanism that the project manager takes major responsibilities,in four stages including biding,construction preparation,construction execution and completion,and employed the analyses of regression analysis,cost analysis,and earned value method etc.to control cost.Finally,through the theoretical analysis of case of the highway reconstruction and expansion project which from Gaofeng through Huolong to the county boundary in Gui’an New District,referring to the completion degree and profitability,with the combination of theory and practice,judge the effectiveness of cost management application,test the operability of the system.Conclusion: cost management system with emphasis of management principles,new structure of organization,grasping key steps of cost management,can improve cost management performance at certain degree in the future road construction project.