Research On Cost Management For Ningxia Engineering And Construction Project Of SH Company

The annual investment in fixed assets of China has reached30.193trillion Yuan until2011, which became an important factor for the economic and social development. The engineering and construction project is the basic unit of Chinese social investment and its scientific cost management is the key link for construction enterprises to improve their production and operation efficiency.Based on the theory of construction management and cost management for engineering and construction project, this thesis focused on cost management of Ningxia engineering and construction project in SH company from the viewpoint of contraction enterprises. On the basis of referring to cost management operating modes of some advanced domestic and foreign construction and petrochemical construction enterprises, While according to many years of experience, the current research illustrated the problems of cost management existed in Ningxia engineering and construction project in SH company comprehensively and systematically, and also discussed more of measures and methods to solve these problems. Specifically, before the project construction and during cost planning, value engineering method was used to analyze the project function as same as the project structure of Ningxia engineering and construction project. Through these analyses, we could clearly know the necessary function of the project and the lowest cost program to achieve it, and then we could determine the lowest cost plan to implement construction program and its functions. In the process of construction work, earned value analysis method was used to measure and calculate the budget costs, actual cost; the planned workload and the actual completed workload within the planned workload of Ningxia engineering and construction project in order to acquire the the implementation progress and cost deviation, which were used to measure the performance power for the project cost. The operating cost analysis was used to perform cost management for the details of the construction work and the owner of the resource, so as to achieve the purpose of managing the entire project cost. Finally, in this research, we draw the improvement program to complete the expected cost control object. Through establishing and improving the cost management systems, formulating the cost management objectives, making clear of the responsibilities of the various management levels and the missions of the different construction phase, and implementing the measures of tracking, inspection, analysis and correction to construction projects, this improvement program was achieved.This research will play an active role to further use the limited resources for the development of construction projects and improve the utilization efficiency of the resources. For construction enterprises, the economic benefits are mainly obtained by strengthening management and controlling the project in order to achieve the purpose of reducing expenses and management costs.