Longquan Hotel Entire Process Construction Cost Management

Nowadays, China is the country which has the most construction projects and invests the most with construction in the world. She made a 4 trillion yuan investment plan to respond the financial crisis in front of us, and a large part of the investment will be embodied in construction. Therefore, it is of great practical significance to study the construction project cost management. However our theory and concept of this management are bound by the traditional system. We still research the separation of amount and price, dynamic control, quota, market price and the cost of competition,that is lagged behind the market growth. According to the law of market economy, we should do some researches while the construction cost is transformed from unified pricing to firm pricing. First is self-regulating market system, by which the factors in the cost management are positively functional. This system is active, interactive and inherent, so it is a market system which can be self-regulating Permanently and is alien to the mandatory administration. Second is permeation. The cost management should permeate the construction links which impact the cost, rather than reflect the whole process after the construction projects are finished. It means feeding forward control. The third is the risk control in the process. After the risk classification and discrimination, We can build the control model to reduce the indeterminacy of the cost management. The consultant firm X brought its advantages as well as the law and Technique of the whole construction project cost management to he Longquan hotel project. This cost management permeates the demonstration, design, tender, construction, alteration, completion, and balancing of the project. This paper comes to a conclusion by the study of Longquan project: the decision-making will be pertinence and concrete by using the whole construction project process cost management, which is favorable to improve the construction project and make the financial and non financial estimate easy.