Risk Management Of The Cost Control Of Contruction Project Based On Value Chain Theory

Effective cost control, which can reduce costs and increase revenues for construction enterprises, guarantees enterprises to remain invincible in the construction industry. However, there exist numerous risk factors influencing cost control in the practical project cost control. Construction enterprises do not take risk management seriously enough. Consequently, the effectiveness of cost control is reduced greatly. In order to limit cost to the planned budget, cost control and risk management should be combined, and by means of identifying, evaluating and managing the risk of cost control, the goal of cost control can be achieved.Based on a large amount of document literature, the present article carries out an in-depth research on the following aspects:On one hand, value chain theory and risk management theory are combined creatively and adopted in the cost control of construction project. The internal and vertical relationships of value chains are extended, and the construction project risks are classified into three different value chains, namely indirect risk of vertical value, direct risk of vertical value and internal value risk. The combination advantages of these two theories are analyzed. Next, the value risks are analyzed, evaluated and managed to cope with in accordance with their characteristics, and the expert scoring method, analytical hierarchy process and fuzzy integrated estimation are adopted in the evaluation of different value chain risks to obtain different assessment results. Finally, according to their characteristics and the risk managers, different controlling methods are put forward to deal with value chain risks.On the other hand, the characteristics of risk relevance of value chain are studied in depth. The definition and characteristics of risk relevance are analyzed theoretically. Combined with their characteristics, value chain risks are analyzed and evaluated relevantly. The linear regression fitting method and Delphi method are creatively combined and applied to evaluate the risk relevance. MATLAB software is employed to calculate the coefficient of risk relevance and then the weight of risk is modified.