The Whole Process Cost Management Research Of Michelin Shenyang G Project

As our country’s backbone industry, the construction industry has a vital important role in the development of Chinese economy. With the deepening of Chinese reform, the status of construction in the national economic construction has gradually improve, how to reasonably and effectively manage the construction cost, guarantee the right use of construction funds, become a very important issue. Formerly, our country only payed attention to the budget management of the construction process and the final estimate management work. As a result, this caused the design estimate exceeds investment estimate, the budget estimate exceeds design estimate, the final estimate exceed the budget estimate. This phenomenon common occurrenced. Due to the construction funds’s incorrect use, capital chain’s rupture, project’s midway shutdown, the construction projects formed lousy buildings. The two sides of construction teams did not reach a agreement about the construction process payment and then caused a long-term defaults of the migrant workers’salaries. The migrant workers suffer from this, did not have place to complain, and lead to violence events. These phenomenons cause the misunderstanding of the outside world, affect the image of the whole construction industry, cause a very bad effect, and do not reach accordance with the harmony society, hamper the development of the construction industry.This paper with Michelin Shenyang G project as an example puts forward the idea of the whole process construction management. According to the construction of the project itself, procedured the various stages of cost management, namely:the investment estimate of the investment phase, the design estimate of the design phase, the contract price and the management of the bidding phase, the budget management of the construction phase, the progress payment and the claim, the completion final estimate of the completion phase. The cost managements of all phases organically connect, each phase of the cost management is no longer simple pendulum put aside but effective interaction, restricting each other. Through the timely and effective follow-up cost management of the, entire construction projects, the construction funds ensures the sufficient and reasonable use reduces the economic disputes of the cost management problems ensures the smooth completion of the project, and promotes national building industry thriving and sustainable development, provides a strong security.