Research On Cost Control Of Construction Project

Construction industry plays a very critical part in national economy material manufacturing. Recently the construction industry becomes more and more important to our national economy life. The growth rate of construction industry of China has slowed down rapidly since2012, take year2013for example, the growth rate of construction industry output value is16.1%, which hit the bottom since2003. With the economy development phase line of China passing through Lewis Turning Point, the phenomenon of materials price level upsurge is aggravated day by day. As a result, the raise of row material cost and labor cost further squeezes the benefit space of construction industry enterprises. In order to pursue survival and developing to adapt to the changing economic environment, construction enterprises ought to replace the old extensive operation model with lean management to reduce project cost, cost control is just the key way of lean management. However, in social practice, the measures of construction project cost control are limited to superficial level. Based on their experience, each department takes its own responsibilities of fulfilling cost budget, cost controlling, cost supervision, and cost calculation during the construction phase. In practice, the financial management strategies are rarely used in cost control. In academic researches, there is seldom systematic study of construction industry enterprises cost control in terms of financial management. Taking all the above condition into consideration, this paper tries to study construction enterprises cost control in view of financial management. This paper takes advantage of theory analysis research method, interviewing method and case study method to investigate the case of A construction company. Through the revaluation of cost control quality of A construction company, this paper puts forward improvement proposal and reconstruct the comprehensive system of cost control in A company. After all, this paper is valued in both social practice and academic study.The conclusions of this paper shows as below. Firstly, it is meaningful and feasible to apply financial management theory in the field of cost control. By collecting and transferring cost information timely, this application promotes the scientific level of decision making and cash management of project, making dynamic cost control available. What’s more, for now the construction company cost control work faces lots of problems just like A construction company. To elevate the constantly development ability and core competitiveness of construction companies, they must pay more attention to cost control. Last but not least, combining the financial management theory and the specific case of A company, this paper builds a comprehensive cost control system in view of financial management, covering the whole life circle of construction projects. This paper is meant to provide some useful enlightenment for similar companies.