Cost Control And Management Countermeasures Of Huigu Company

In recent years, the construction industry continues to expand their scales, and accelerate the pace of structural adjustment. The changes of production mode are carrying out step by step, and the market competition is still fierce. Based on the national key project construction, city public traffic infrastructure construction, real estate development, transport energy construction, the development of modern manufacturing industry, the construction of new socialist countryside, the construction market is showing vitality. The large and medium-sized construction enterprises are making further structure adjustment. The foreign construction markets are rapid developing. The levels and regional scopes of market are becoming more and more optimization. At the same time, private capital is very active, and the private enterprises grow rapidly. But on the other hand, the economic benefits of state-owned large construction enterprises are still low, and profits continue to decline. In recent years, the bidding is not standard and disorderly competition increased the investment risk for the formal enterprises. More serious is, after entering the WTO, the barriers in international trade has disappeared, and the major foreign enterprises are entering the domestic market, which will aggravate the competition and elimination for the domestic enterprises.The project cost management is the main way to increase profits, expand accumulation, and is the key of project management. So holding the cost control, we can find and solve the problems in the production and management, and ensure production and management always subject to engineering quality and reduce the cost of the project. We use Huigu engineering construction company as a typical case to analyze the problems and the countermeasures in the project cost control and management issues.Based on the domestic and international research, we summarize the concept of cost, and summarize the theory of cost control and cost management. Considering the problems in cost management of construction enterprises, we construct the conceptual framework of cost control and management. For the cost management of construction enterprise, there exists the problems of cost accounting system can not meet the needs of the market economy, the cost management is not a correct understanding, method is backward, obsolete management idea, divorced from the economic and technological analysis, lack of cost competitive, weak market adaptability. We analyze the connotation of the cost management from the enterprise management level and project management level.Combined with the actual case, we analyze the problems on cost control and management of Huigu engineering construction company. The prominent problems are the awareness of cost control and management is still weak for the manager, neglect the cost plan and cost analysis, not exact understanding on quality cost and period cost. We suggest firmly insisting the modern concept of cost control and management, and establishing perfect cost management system and the quality cost management system, and strengthen the construction responsibility system of safety management, and establish the information system of project cost management.