The Optimization Research On Cost Management Of A Project In Bureau3of CSCEC

Construction industry is the pillar industry of the national economy, it plays animportant role in terms of infrastructure, transportation and economic development. Inrecent years, with the development of China’s economic reform, the constructionindustry has made great progress, construction team has grown, the technicalequipment has gradually increased and construction capacity significantly enhanced.However, the overall profitability of construction enterprises is low, when competingwith foreign construction companies, the lack of technology and project managementis apparent. The development of construction enterprises affects by many factors,especially the cost management.The process cost management theory is a relatively complete management, we canmanage the whole cost by comprehensive analysis of the implementation phase. WBSestimation method uses the decentralized ideology, it divides a project into severalrelatively independent units based on the dendrogram. The estimated cost of theproject can be obtained by aggregating the cost of each unit. Earned value method canachieve real-time dynamic control of the project schedule and cost, it is a commonmethod of project cost control, also an effective mean. The studies and empiricalresearches by domestic and foreign scholars prove that applying activity-basedcosting in construction enterprises is advanced and feasible. By using ratio analysismethod, we can locate the strengths and weaknesses of the project as the lessons ofthe future cost management of the project.A Project in Bureau3of CSCEC is the study of this paper, the main issues in AProject are thorough analyzed. The optimize cost management measures are raisedseparately from the estimating phase, budgeting phase, implementation phase,accounting phase, the analysis phase and assessment phase. Then these measures areimplemented into the appropriate phases.