A Study On Objective Cost Management And Its Process Control In SZ Company's Large Bridge Construction Project

The rapid development of modern society provides construction industry in China with a broad prospect for development, but over the years, low profit rate makes it important for construction enterprises to control the cost. Especially in the situation of global economic integration, to strengthen the cost management of the construction work and to discuss the measures of reducing the costs for enterprise survival is imminent.At present, though there're a great many works on project cost control Management, there's deficiency to implement cost control in construction engineering enterprises in China, as a result, it will seriously affect project cost control.This thesis first introduces the development and the current state on the project cost control, next it expatiates briefly the theory of cost control, features and principle of cost management in construction projects. Then it introduces the Objective Cost management, and exposition on Process Control is supplemented in the thesis in order to make up the imperfection of the Objective Cost management. In addition, it introduces practical steps and measures relating to the Process Control of the Objective Cost managementNext the thesis writer observes the Objective Cost management and the Process Control over one large bridge constructed by a company, the writer looks into its early stage plan, amid-project and post-project control, adopting methods of qualitative analysis and quantitative analysis, and employing the standard study and case analysis as well. The thesis studies intensively about what the Objective Cost management contains, and emphasizes those factors that need controlling, moreover, it analyses measures and methods used to strengthen the control over these factors respectively. And it also discusses how to establish a set of suitable cost control management system, and to apply these into practice to have control over cost management for large bridge construction. The thesis writer believes, implementing conventional Objective Cost management is not adequate to ensure the performance of cost management; Since the target of the cost management is achieved in process gradually, therefore, it is inevitable to introduce the idea of the Process Control, in order to seek an ideal effect of the Objective Cost management.Through this research, we can draw the conclusion:it is an effective method to combine the Objective Cost management with the Process Control, with a purpose of better cost control in construction project.The cost control in construction project must implement systematically dynamic control, requiring the combination of the Objective Cost and the Process Control. Only if the project executive calculates the cost of bidding projects in its early stage, manages the factors which affect the construction project in the implement stage, controls quality, safety, the rate of progress and the contract-management, enhances the data analysis in the stage of post-project cost control, can the transformation be accomplished from the early stage to amid-project, and finally it's possible for the project to reach the goal, cost control.The cost control needs to be extended to the source of the cost management, the post-completion stage, that is to say, the bidding stage, the completion account settling stage and the final payment stage.The reasonable decomposition and correct prediction play an important role for the whole cost control.This thesis puts forward the idea:the Process Control of the Objective Cost management. Meanwhile, it specifically proposes measures of Objective Cost control and cost management on various stages. The project executive should ensure everyone to have a clear goal, fully carry out the methods of cost control, completely realize the organic combination of the project's dynamic cost management with conscious activity. In this way, the concept of the Objective Cost may be running through the engineering project. Construction enterprises should know well the circumstance of the project cost, along with management and target in various stages, to ensure the project cost in the controlled range by formulating and revising the Objective Cost.The thesis has certain guiding value for cost control of the construction project.