Research Of Cost Control For Hunan-Guangxi Railway Nanning Pivotal Project

The cost of large and medium-sized construction projects is easy to lose control in the actual operation. In the railway construction industry, the high construction cost of railway projects has been suffered to query from outside. Especially several illegal incidents of railway project construction audited by the National Audit Office recently push the railway project construction to the forefront. Facing so huge railway project construction but with many problems, the solution of cost control problems in railway project construction is related to the quality of railway project construction and the healthy development of railway construction in future.The author thinks that the main reason for these phenomena is related to focusing only on its own management of cost target but ignoring the relationship between cost target management and other target management in cost control of railway construction in China for a long time. In fact, not only weak management of cost for labor, materials and machines results in increased cost, and low level of quality management, no effective implementation of safety management, no effective management of schedule goals, environmental destruction and technological backwardness also are the major cause which cost is out of control. Cost, quality, safety, schedule, environmental protection and technological innovation are six major elements of management in large-scale railway construction. These various elements are interrelated, interact on each other and promote each other at the same time. Focusing only on its own management of cost target but ignoring the internal relationship between cost and other elements inevitably causes endless problems of project construction and difficulty of project cost control.From the cost control theory, this paper combining with the characteristics of Hunan-Guangxi railway Nanning pivotal project, analyzes existing problems and its cause of cost control for Hunan-Guangxi railway Nanning pivotal project that weak management of cost for labor, materials and machines, low level of quality management, no effective implementation of safety management, no effective management of schedule goals, environmental destruction and technological backwardness lead cost control to be out of control. In order to effectively control the cost of Hunan-Guangxi railway Nanning pivotal project, combining with’Six in One’management mechanism, from the point of view of cost, quality, safety, schedule, environmental protection and technological innovation the author proposes management appraisal measure for them. By organic integration and analysis of the appraisal results, the problems of cost control for Hunan-Guangxi railway Nanning pivotal project are solved well, and the construction cost for this project is controlled effectively.