Research On Project Cost Management Based On The Bill Of Quantity Valuation Model

Project cost management is defined as to employ administrant means, such as scientific and technical theory, economic and legal means to tackle the practical issues during the activity of project construction, including the definition and control of project cost, technology and economy, as well as management, striving for the reasonable employment of manpower, material recourse and financial ability, to reach the aim for the improvement of the benefit on both investment and economy arising from all operations and organizing activities. Project cost management is a extraordinary enormous and complicated systematic engineering. Under the background of marketing economy and integration of world economy, how to further strengthen our project cost management, to reduce the project cost, to increase investment profit, to promote the development of our construction market of health, continuance and stabilization, to establish a project cost management system which not only adapts to the situation of our country but also accords with internation, has been an important issue that architecture industry is discussing .In accordance with our national conditions and the international custom and usage and the advanced experience of project cost management in developed country, this paper brings forward that the Bill of Quantity Valuation Model which is in line with international practice, is the direction and the only way of our country's project cost management system reformation, and it is also the efficient way to form the project cost mechanism which is based on market. Through setting up the theory of Bill of Quantity Valuation Model and the system method of Total Cost Management, the new ideas on Project cost management have been put forward .This paper introduces the concept and basic principle of Bill of Quantity Valuation Model, Total Cost Management, Activity Based Entire Course Cost Management etc., researches the approach to control the project cost on every stage by the theory of Design To Cost , Value Engineering , "ABC'classification figure , PDCA , Earned Value Concept etc...This paper discusses the relevant measurements with the reformation of Bill of Quantity Valuation Model , includes changing the government function, formulating and fine-tuning various laws and regulations, reforming and developing the project cost consultative agency , setting up and perfecting an information system of project cost management etc... Therefore , the project cost management system under Bill of Quantity Valuation Model is established .