Research On Target Cost Management Of Construction Projects

With Context gradually toward opening up in China’s construction market, construction market competition becomes steadily more intense, which requires Chinese enterprises to continuously improve their competitiveness in order to meet the development trend of the world situation. Compared with the domestic construction enterprises, foreign multinational construction engineering companies have great advantages, they have advanced management experience and management mode, and highly competitive. This is a challenge for Chinese construction enterprises Chinese construction enterprises must have a higher level of project management, a keen eye to seize market opportunities to win their own development and growth. A widespread problem in Chinese construction enterprises is the low level of the project cost management. Mainly, win a bid at a low price, after win the bid, with a variety of ways to increase the implementation process cost. This vicious competition mode do more harm than good, this made an injury to the interests of investors and construction enterprises. This vicious competition mode can cause unnecessary losses to investors, hurt the credibility of the construction enterprises; reduce the competitiveness of construction enterprises. In a long-term view, this model of enterprise development is greatly detrimental. In this context, the research in project cost management of construction enterprises has important practical significance. This paper first discusses the goal of management, cost management and the basic theory of target cost management, divide them into the meaning, classification and characteristics; to have the preliminary understanding to the theory, combined with the characteristics of construction projects, management by objectives of construction project cost theory, discusses the model and framework of target cost management of the construction project; and then, the article discusses the cost management of construction project objectives met during the construction problems, and put forward countermeasures; finally, under the background of the study, the real case of Shenzhen a construction project target cost management are analyzed.