Research On Implicit Cost Control In Constrution Projects

With the increasingly vigorous market competition in construction engineeringproject and the gradually reduce of the profit space, cost management is playing anincreasingly important role in the project management field. Cost control has becomethe key to decide the cost management performance and the ruler to measure the profitspace, so more and more construction enterprises begin looking for new cost controlmethods currently. In practice, many construction enterprises simply go in forminimizing the cost of the financial accounts, without considering the existence of thebenefit loss “funnel” implicit cost. Obviously, the capability of enterprises in terms ofexplicit cost control is relatively mature and roughly the same, while implicit costcontrol is still in the initial stage. The effective implementation of the implicit costcontrol has become the foundation for enterprises to enhance profitability and theguarantee to gain competitive advantage. The subject, quantitative analysis of implicitcost control in construction project, is of a strong practical necessity.This research is always permeating such a thought, namely “total project cost canbe reduced o saved; the generation of implicit cost can be avoided to some extent”. Themain research work in this ideology is as following:(1) From the current status of theconstruction project cost management, it discusses the cost predicament in constructionenterprises for the moment, and puts forward the importance of implicit cost control;(2)The thesis analyses the intension, the characteristics, the mechanism of production, theinfluence factors and so on, analyzes the relationship between explicit cost and implicitcost, providing reliable theoretical basis for quantitative management and control ofconstruction project implicit cost;(3) Based on analysis of influence factors of theimplicit cost, it introduces BP neural network, factor analysis method and elasticityanalysis theory, and selects appropriate indexes, proposing and constructing the construction project implicit cost dynamic control system;(4) Application and analysisof the model, the practicability of the construction project implicit cost dynamic controlsystem is validated through the simulation study. Finally, it provides corresponding costcontrol countermeasures and measures with the combination of implicit cost factorsquantitative analysis results.The paper’s main contribution this implicit cost study of is as following: itintroduces the Neural Network into construction project implicit cost control tentatively;the construction project implicit cost dynamic control system is built combined withfactor analysis method and elasticity analysis theory, making the implicit cost controlmore scientific.