Objective Cost Management Method Investigate Of Construction Project

With the globalization of the world economy, the market competition is intensified; the operation condition becomes complicated, leaving the stated-owned construction enterprises under great pressure. In order to make a living and gain sustainable development, the enterprise has to strengthen target cost management, carry a variety of measures to reduce the cost, excavate potential in every step, and then compete in the market with its cost advantage. The price cut is reasonable only on the premise of cost reduction; otherwise, the enterprise will face the risk of being eliminated. China Xinxing Construction & Development General Corporation has already realized the importance of cost management, and formulated target cost management methods, regulations, contract and subcontract principles and detailed rules, according to its own actuality, which have received some effect. However, there are still some oversights and deficiencies in the process because of the dated system and ideas. So it is necessary to make a deeper and more meticulous research into the target cost management models, steps and methods. The article makes a combination of qualitative and quantitative analysis in the target cost management processes in Rita Shang Street Project and Sane Huifuyuan Community Project. By case study and standardized analysis, the author draws an academic conclusion with the data collected either by observing or consulting, and then raises some advices on perfecting and deepening the target cost management in the state-owned construction enterprises. The article is of great practical significance to the state-owned construction enterprises in the intensive competition nowadays.