China International Engineering Contracting Project Cost Management Performance Evaluation Model Research

With the development of economic globalization， the competition inInternational engineering contracting market become fierce Increasingly. Althoughforeign engineering contracting enterprises in our country have achieved somesuccess, compared to foreign competitors, there is a large gap. The level of projectcost management makes a direct impact on the profits of the foreign engineeringcontracting enterprises, thus affecting their competitiveness. Therefore, how toimprove the level of project cost management, and then increase project benefits, hasbecome a urgent problem of foreign engineering contracting enterprises in ourcountry.By studying the current situation of foreign project contracting enterprises’ costmanagement and its performance evaluation in our country, I found that most of theengineering contracting enterprises only concerned about cost reduction, notconcerned about the impacts of the cost, such as manpower, technology, culture andother factors. And they only attach importance to the construction cost while ignoringquality, schedule, procurement, environmental and other costs, also lacking a set ofcomprehensive and scientific cost management performance evaluation model.Firstly，this paper establishes project cost management performance evaluation modelfor our foreign project contracting enterprises based on Balanced Scorecard in fivedimensions: finance, owner satisfaction, project operation, innovation and learning,cultural adaptation. Secondly, this paper determines the weight of each index in theperformance evaluation model built by the method of Analytic Hierarchy Process.Thirdly, this paper evaluates the performance of cost management by using FuzzyComprehensive Evaluation method. Finally, by analyzing the case of the M-countryRL Hydropower Station Project, the paper did not get the same results with thetraditional method, thus it examined the practicality of the established costmanagement performance evaluation model. Engineering contracting enterprises canactively improve based on the evaluation results to improve the level of cost management, thereby increase the competitiveness.According to the research, the performance evaluation established in this paper ismore scientific and comprehensive in evaluating the performance of our foreignproject contracting enterprises’ cost management. It has a certain sense of guidanceand reference.