Accuracy Cost Management Research Of Railway Construction Project

In the year 2014, the average operation scale of China Railway Engineering Corporation and China Railway Construction Corporation had been attained to,or even exceed the business scale of international advanced enterprises. Even so,the rate of profit is low, and their asset-liability ratio keeps rising. Besides,benefit and scale doesn’t achieve a balance. All of these restrict the survival and growth of the inland construction enterprises. The main reason of these is that the main business of these two railway construction enterprises both are railway construction projects management. Railway construction projects are all extensive management, which is short of cost management consciousness,standardization and system execution. To improve the profit margins and comprehensive strength, the railway construction enterprises must change the extensive management to accuracy cost management.This paper took the railway construction projects as example. Aimed at the problems existed in railway construction projects cost management, it introduced the accuracy management, ideology and structured the accuracy cost management system. Main research conclusions as follows:(1) Analyze the main problems existed in railway construction project cost management. Construction projects usually took the extensive management pattern and didn’t pay much attention to cost control. The organization structure of cost management was complex, the management chain was too long and they were short of effective cooperation. All of these leaded to low management efficiency. The inaccuracy of target cost data resulted in a low maneuverability of cost management. The responsibility system and the mechanism of supervision and appraisal were imperfect. Cost management system wasn’t really implemented. Cost data weren’t precise. Cost management means lagging.(2) Structured accuracy cost management system of railway construction projects. Aimed at the trait of the railway construction projects and the problems existed in cost management, this paper optimized the four levels institutional framework to be three levels flatten matrix institutional framework adapted to the accuracy cost management with the aspects of institutional framework,(3) management mode, cost management system, cost management function, target cost analyze, cost control measure, process management and accuracy cost management. All of these reduced the management chain; lay the foundation of improving cost management efficiency. Established the accuracy cost management system. Detailing the cost management measures of every link from construction preparation to completion acceptance. Divided the accuracy cost management function of the three levels flatten matrix institutional framework. Present a target cost computing method which directed by the market value and the enterprise quota and target cost decomposition method based on WBS. Proposed that the cost precontrol should be realized by construction drawing optimization and strengthen budget management before win the bidding. Take the measures such as equalization construction, technical innovation, modification and claim and strength subcontract management to control the cost during the construction. Take the steps of separation of volume and price, quota for material and money for things to control the element of cost management. Divided the management process with the aspects of cost plan,cost accounting and cost analysis to structure a impeccable accuracy cost management system.(4) Taking the part DK0+000~DK30+000 of the TP railway project as an example, verified the effectiveness of the accuracy cost management system.Analyzed the deficit reason in the extensive management mode at the project beginning and development measures of correction deviation. The accuracy cost management system and measures were implemented at the project final to compress the institutional framework and save the administration expense.Detailing the cost management responsibility and setting a logical cost goal to reduce the management cost from 6.8% to 0.85%. Reduce the loss 7,097 thousand by variation and claim and reduce the amount of loss from 8,000 thousand to 1,100 thousand. All of these brought great economic benefit and demonstrated the effectiveness and operability of the accuracy cost management system and manage method that this paper structured.