Project Cost Management Research On The Construction Project Of Domestic Service Portal Website Of FUYIN

The FUYIN Network Company engaged in site construction and site promotionrank for nearly10years, has completed many projects, and accumulated richexperience. In recent years, the company scale has expanded rapidly. Its websitedevelopment and construction project also increased year by year. On the contrary,the company’s business profit is constant or even decline. Through the study of itsincome and cost, we found that the high level of project cost is the main influencefactors of the company profits. The management mode in the past of FUYINCompany cannot adapt to the rapid growth of business scope and the fiercecompetition environment any more. Strengthening project cost management hasbecome an important content of FUYIN Company’s daily management.FUYIN Company, like most of the small and medium-sized software enterprisesin China, is lack of cost management consciousness. Its Evaluation of theperformance is focused on the business and income level. In the past project, costoverruns phenomenon is very common; few projects can achieve predetermined profitmargins. There is a lot of problems, such as a widespread cost estimate, the budget isnot accurate, the cost control is not comprehensive.This project begins in November2014, time limit for the project is20days andits contract price is21300RMB. Its target profit margin is15%. The project inaccordance with the project life cycle can be divided into four stages: project phase,project execution phase, the end of the project phase and maintenance phase project,and its cost management is mainly focused on the first three stages. According to thedefinition of the Project Management Institute, project cost management should include four aspects of content: the project resource planning, project cost estimation,project cost budget and cost control.Project resource planning scheme is a process of determining the resource typeand quantity according to the WBS. Project cost estimation needs to calculate the costestimate with Analogous estimating method. As for labor costs, we first classifydevelop technical personnel according to their title and working years. Then we workout the cost quota. Lastly, we use cost quota multiplied by works hours to get the totallabor cost. Project cost budget decomposes the target cost to various tasks and workpackage, and develop responsibility cost system. Cost control work requiressupervision of project cost finds problems and solves problems timely.This cost management plan of the project of Domestic Service Portal Websitenot only hope to be able to reduce the project cost overruns, and project cost controlwithin the target range, also hope to provide reference for the cost management of thefollow-up project in FUYIN Company. In addition, we suggest FUYIN Company tocomplete the project cost management process, form special department of projectcost management, and strengthen the supervision mechanism of project cost, in orderto ensure that the follow-up project implemented smoothly.