Responsibility Cost Management And Applied Research Of The Group Large-scale Construction Project

Cost management and control has always played a key role as "bovine nose" in improving enterprise’s comprehensive management capabilities, especially in those construction enterprises which look up on its importance as blood and life. Cost management and control is not only the reality needs for those construction enterprises to get out of the "high production value-low efficiency" trouble, but also the powerful guarantee to meet the market demands and expand the market. At the moment, there are a great number of researches about construction enterprises’responsibility cost management. Undoubtedly, those researches made great contribution to responsibility cost management practices. However, we should pay more attention to the modes and methods of responsibility cost management, because the construction industry has special industry scale, market environment and project character.Under the background of hot investment in construction projects, the original responsibility cost management mode cannot solve the problem that how to reduce cost and how to lower project management cost and avoid risk in project management effectively, especially for those enterprises face new challenges, such as high degree of specialization, dynamic control of the projects, stringent organization, and complicated but time sensitive construction requirement.By investigating the responsibility cost management of HD project in China Railway Erju Co., Ltd (CREC), our research committee successfully comes up with a cost management mode-"Cost dual control and benefit sharing" mode, which can apply in those projects such as China Railway Group as bid winner and CREC as executor, and based on large-scale construction project, this mode emphasizes the double control of the parent company and the subsidiary company; builds guidance on a series of process, e.g., improving regulation, dividing possibility center, and budgeting, breaking down, controlling, measuring and evaluating possibility cost; and distributes the profits among the related participants. This thesis sets forth in great detail the operational procedures and experiences of HD project. It is hoped that the cost management measures proposed in this thesis will act as references to and/or be popularized by enterprises in the same industry with CREC or other large construction enterprises, thus will maximize the profits.This paper includes seven sections, its structure and content as follows:The first section analyzes the research problems, background and reason of writing this paper, the research objective and expected value, the research methods, the framework and main methods.The second section of the dissertation reviews and criticizes the former literatures from two aspects; one is cost management of construction projects and the other one is responsibility cost management, compares with the foreign and domestic research situations so as to find the research empty of responsibility cost management.The third section first gets on the concept of cost from origin in Marxist theory of surplus value of generalized concepts, and it defines responsibility cost management on the basis of a large number of documents. Then this paper recommends the theory of the cost management and the theory of the responsibility cost management, and combining the construction enterprise group medium-large construction project production and management features, it defines the concept and characteristic of the group about the project responsibility cost management.Meanwhile, it condenses the mode of the responsibility cost management of the large-scale construction projects.The Forth section briefly describes the basic situation of large construction projects, then comment on the problems of responsibility cost management of construction project from the perspective of the whole industry, finally analysis and assesses current two patterns of responsibility cost management for the large group construction project.The fifth section submits detailed opinions on making models and establishing management process for large projects’responsibility cost management when we combine with characteristic and the management layer. Then this section illustrates the necessity for group construction companies to establish the "Cost dual control" mode. The sixth section illustrates the adhibition of the" Cost dual control" mode in HD project, and then retrospects its effectiveness.Finally, this paper summarized the full research, forecasts the perspective and future research direction of "Cost dual control and benefit sharing" mode in group construction companies.The main contributions of this paper are as fellows:Firstly, this dissertation conducts a deep and systematic research for the responsibility cost management of large-scale construction projects of an enterprise group to find and establish an effective responsibility cost management pattern. The research has very important effects on promoting the full operation of responsibility cost management in the large-scale construction projects of enterprise groups. In the meanwhile, the dissertation has important utilizing meaningfulness and promotion value for promoting the responsibility cost management of group construction companies.Secondly, this dissertation mostly studies the responsibility cost management mode of the large-scale construction project in the construction group, which called "Cost dual control and benefit sharing" mode. Combining with the passenger special line of Harbin-Dalian project of the responsibility cost management, it expounded the actual situation in this specific application projects, and linking the theory with practice, this paper studies the practical maneuverability of the actual responsibility cost management system.Thirdly, this dissertation studies the main problems which group construction companies will confront when they carry out the responsibility cost management.