Research Of Cost Management And Risk Control Of Projects

With rapid socio-economic development in China, increasingly fierce competition between various industries occurs. Meanwhile, with rapid population growth and the growing demand for construction, the pressure and competition of construction enterprises is also increasing. Nowadays, the construction companies suffer from high cost, low profit and high risks since the projects are always complicated and exposed to numerous uncertainties. They need to adapt the risks and control the costs. Clearly,the cost and risk management research of projects is very necessary.This paper aims to conduct detailed research and analysis of construction costand features, and then demonstratethe risk factors that may arise throughout the construction process. The risks are to be analyzed with risk management principles. After that, the process of risk identification, assessment, management and monitoring will be addressed.Firstly, this thesis analyzes the basic theories of cost management. The definition of project cost is discussed and the content and process of cost management is analyzed. Then the prediction methods of project cost is described. Besides, the method of cost planning is also represented. The main process and methods of project cost control is analyzed based on different stages of a project.Moreover, risk evaluation index system is built based on the identification of risks which effect the project cost. A risk evaluation model is also established with AHP.At last, the thesis used a real project to do a case study. Cost management and risk control process is simulated during the stages in which the construction company participated.