Case Study On Cost Control Of TY Highway Project

With the increasing attention of the country to the construction industry,the standard of engineering construction is more and more strict,and the competition in the construction industry market is fierce.While ensuring the safety and quality of the project,the price should not be too high,which is undoubtedly a huge challenge for the construction industry.There are no doubt two ways for enterprises to increase profits: open source or reduce expenditure.For the project,open source is more difficult,mainly to reduce expenditure,so we should focus on the cost control of the project.There are many literatures on the cost control of construction projects in China,but few of them use the earned value method to control the project cost,and most of them are real estate,highway and railway projects,and few of them use the earned value method to rural highway projects.In this paper,the earned value method is used to monitor the project cost and project progress.The reason for the cost deviation is that the actual unit price or the progress is not the same.Then the reasons are found in detail,the deficiencies and their causes are analyzed,the deficiencies are corrected,and the improvement scheme is put forward.Through this example,the enlightenment for the industry is put forward.At the beginning of this paper,the current domestic situation of the construction industry is introduced.The construction industry is facing huge challenges.In order to stand out in the market competition,the cost must be reduced.Cost control is an important way for road and bridge enterprises at present,and it is also a direction that needs continuous research in the future.Secondly,through the research of various researchers at home and abroad,the earned value method was proposed in the 1960 s.Because it can monitor the progress and cost at the same time,the earned value method has been widely spread and used by many advanced construction companies.In China,the earned value method was introduced in the 1980 s.Now there are few literatures on the earned value method in China,and there is no research on the application of the earned value method to rural roads.Then it analyzes the current situation and advantages of earned value method,three basic parameters and four evaluation indexes.In this paper,the use of a county rural highway TY project as an example,first briefly introduces the basic situation of S company and s company’s cost control,as well as the use of earned value method to calculate parameters and evaluation indicators,based on the earned value method for deviation evaluation analysis,analysis of its cost deviation reasons,and based on the deviation reasons to give corrective measures.Then it analyzes the deficiencies and reasons of TY project,and puts forward suggestions for improvement,mainly in improving the cost control system,strengthening the management of raw materials,machinery and equipment,and setting the correct cost control cycle.Through the example of ty project,it also gives some enlightenment to the cost control of the same industry.Finally,it points out the shortcomings of this study,as well as future prospects,hoping that future researchers can continue to dig in this field.