Studied On The Cost Management Of Construction Enterprise Based On Value Chain Theory

Construction industry as a pillar industry in China, it is linked to the economy of the country. However, in recent years, a growing number of international construction units join into the country with the increasingly fierce global competition, so that our construction enterprises are facing economic and social environment has changed greatly. Then in order to make themselves invincible, the enterprises must be committed to enhance their core competitiveness, improve cost management, reduce engineering costs. It is an inevitable choice to become the construction enterprises subsistence and timely development.The cost management theory based on the value chain to solve the construction of enterprise cost management provides a new idea. Combining value chain theory and the construction business processes and characteristics, we summarized the cost constitute factors of construction enterprises, and divided them into internal operating costs and external strategic cost. Based on these costs constitute factors, the index system which affecting the cost was constructed. Eight key factors which influences the cost of construction enterprises was extracted with the use of principal component analysis.The cost control strategies was given for these key factors. Finally, combining a Chinese state-owned construction enterprise of architecture, we carried out its cost analysis based on the value chain theory, and gave out the strategy of company’s cost management in order to verify the effectiveness of the cost control methods.From the results of this paper, the method of cost management based on the theory of value chain can be used to every link of the value chain activities, which makes it easier to catch the essence of cost management cost. Through increating activities of creative value, the non-value activities was evaded. So that we not only achieved thepurpose of cost control, but also improved the benefit of enterprise cost.