The Research On LOFCC Project Cost Management

As the market economy develops by leaps and bounds in China, enterprises' production and operation are more subject to market fluctuation. Large-scale state-owned enterprises are also gradually moving away from state planned investment and into fierce market competition. For construction projects as a major form for state-owned construction enterprises to carry out work, one of major methods for enterprises to create profits is to strengthen project costs management. In the field of costs management of construction projects, it is still an urgent problem for enterprises to improve project costs management and create the maximum profits, based on the current management systems.Based on relevant literature and documents, the article describe the formulation of target costs management system by LiaoHe Oilfield First Construction Company for construction projects, summarizes three stages in the implementation of the target costs management system and analyze the problems in the current costs management system. A work breakdown structure (WBS) adopted in the work of engineering projects is used to break down and specify the features of various management targets. In integration of actual situation of these enterprises, the article probes into the establishment of an operable costs management system that can improve the effects of project costs control and management.By integrating with the management practice of LiaoHe Oilfield First Construction Company, the article brings forth highly targeted improvement methods and proposals, in expectation of providing some reference value for improving the costs management level of engineering projects of LiaoHe Oilfield First Construction Company.