Supply Chain Based House-Building Cost Management

In order to survive and develop in vehement industry competition, most of house-building companies adopt cost-leading strategies under the focus of strengthening cost management.The definition, characteristics, research objects, contents and research methodology of construction supply chain is discussed in detail after the introduction of supply chain management which got successful use in manufacturing industries in foreign countries.Secondly, based on the discussion of modern engineering cost theoretical framework, it defines the house-building cost by syncretizing the company's strategy cost, object cost and activity-based cost.Thirdly, a hypothesis to analyze supply chain function factors in house-building cost is given and tested through analyzing statistical data which came from interviews and questionnaires to the inner persons. It's an important and influential factor when discussing supply chain in house-building, although it's not the only one.Considering the culture environment and the construction company's controlling abilities to all the found factors, good relationships between house-building companies, customers and suppliers is necessary and house-building companies should apply customer relationship management to it's vital stakeholders without emphasizing consolidated strategic alliance for the lack of mature relevant legal support; The traits and further detailed hierarchy of information platform to house-building companies is also presented; finally, a model & algorithm based on the best value for critical path and the second distribution of the materials on site is given as for the inner factors.Compared with the traditional comprehension about engineering cost, the introduction of supply chain management into house-building industry can help the construction companies initially realize the inner integration and reduce the inner trade cost, so the efficiencies are boosted.Construction industry in China is the type of capital & labor force double intensive one with low technical content as well as productivities. It's hard to acquire satisfied performance for the reason of adversarial relationships under the rigid contracts between the suppliers, main contractors, designers and clients; it's also for the reasons of malicious competitions, lowest price criterion for the contractor's selection, limitations for the scope of contracts, maybe occurring alterations and inappropriate risk avoiding measures.