Cost Management In Waterpower Constructing Building Project

As China applying the West Development Strategy, the projects of water conservancy and water power construction are facing a new building climax because of the Plan of "West-to-east Transportation of Electricity". Nevertheless, competition among the enterprises under taking water conservancy and water power construction projects reveals a more and more intensive tendency. State-owned water conservancy and waterpower construction companies must discard the old system as soon as possible and old way of "waiting for,depending on,and asking for from government" resolutely. They should promote their ability to compete through the way of enhancing project management ability and reducing the operating costs. This paper mainly studies the cost management in project management.Firstly, this article introduces the basic conception about project, project management and building costs and analyses the feature of water conservancy and waterpower construction building projects cost and the situation of building companies' cost management and clarifies the necessity of cost management innovation and the problem that need to solve.Then, after analysis the project cots management model based on the use of project management theory, control theory and institutional economics theory and learning from the experience of corporate governance in the United States, the thesis introduces the concept of the overall project cost management system. It also builds a comprehensive costs management system from the overall project cost management functions, elements, process and the integration of the information technology, and makes people understand the principle of operation of the system. The costs of the scheme, costs control, costs accounting and costs analysis of this comprehensive costs management process as the main line were used to analysis the dynamic process of the overall project cost management system.Finally, one water conservancy and waterpower constructing project was used to be a case to do the empirical study of a complete project management costs, especially, detailing analysis the project costs and system costs. Analysis the dynamic control process from the eight aspects of the project cost, as the construction design, labor costs, materials, machinery and equipment costs, time costs, quality costs, security costs, the cost of capital. How the institutional cost effective management and control from the arrangement, and control measures, the system obstacles to the negative effect on the cost of the project were described.