Construction Project Cost Management Research

Since the economic revolution in Mainland China, Chinese economy has being developed.Construction industries have been developed as well. However, the construction consumed the resourcesnot very effectively and the profitability of construction enterprises were low at all. It affected developmentof construction enterprises and competitiveness in the future. It also wasted the resources of the country.Therefore, to control the costs and expenses of project is the most important duty for the constructionindustries in Mainland China.Meanwhile, in Hong Kong, construction industry has been diminishing since 2000. Under the exceedsupply and keen competition environment, enterprises must have not only cost management but effectivelycost management.This research focused to project cost management. The construction projects were huge and variety. Itmade cost control more complicated and synthetic. To achieve the goal and cost control, it should integratetender preparation work, quality control, progress control and effectiveness.Cost management includes cost estimated, cost budget, cost control, cost audit, cost analysis, costreview. Project cost management is a recycle system. Steps are inter affected. Every step is very critical tomaximize the profitability.First of all, this dissertation will review the existing construction cost management in Mainland Chinaand Hong Kong. Afterwards, it will describe the how management by objective in project costmanagement been organized and implemented using PDCA approach. At last, it will further illustrate theeffectiveness of PDCA model and showed how to apply the model by using two examples.