Optimization & Research On MJ Project Cost Management In Malaysia Of SD Electric Power Construction Company

In response to the shrinking domestic market and the increasing competitive pressure, more and more Chinese electrical construction enterprises choose to carry out the "going out" strategy: they enter the world market though they must face the competition from Europe, America and even Japan and South Korea companies. In order to obtain high profits and enhance market competitiveness, during the construction process, cost management should be paid more attention to, and cost management is a key factor which influences the project profit and its sustainable development. In view of this situation, this paper is to introduce how to learn and take advantage of the theory and method of cost management from domestic and foreign scholars, and absorb cost management experience in overseas projects from the world’s leading electrical construction enterprises, to provide the scientific guide for cost control management of overseas projects and optimize cost control management measures of overseas projects and improve enterprise benefit.Firstly, this paper clarifies the background and significance of project management and project cost management research in electric power construction, as well as research methods and research approaches of project cost management, and defines paper topic and direction. Through a comprehensive overview of relevant literature at home and abroad, it generally describes the development process of project management and cost management, analyzes the development status of related theoretical methods of project management and cost management, and explain the project cost management principles and common methods in details, which provides a referential theoretical basis for the following construction project cost management.Secondly, SD Electric Power Construction Company and Malaysia MJ projects are briefly expounded, cost management measures and approaches taken in overseas project of SD Electric Power Construction Company are explained, and the current status of the management cost is analyzed. Through the analysis of cost management factors in Malaysian MJ project construction process, we find that labor costs, mechanical royalties, material costs, measure costs, political environment, safe and civilized construction, finance and schedule are the main factors affecting the project cost. By analyzing the cost management measures taken in MJ project, and assessing and summarizing cost objective, cost management problems and reasons are found out in Malaysia MJ project, to find the source to further enhance the project cost management.Finally, this paper adopts benchmarking, analyzing the good measures of project cost management in domestic and foreign electrical construction industry’s leading enterprises including Shandong Electric Power Construction No.3 Corporation, French Alstom and South Korea Hyundai Engineering Construction Corporation, and identifies the shortcomings and deficiencies of the project cost management, as well as focus and difficulty of cost control. At last, by referring to good practice from the leading companies and the actual conditon of cost control in MJ project, the measures and the proposals of cost management in project construction are optimized and improved, such as establishing a sound system, increasing efforts to train personnel, implementing refined management, and developing prevention policies and measures to treat exchange rates change, and the third-party auditing and other suggestions are introduced, to provide experience for the better implementation of overseas projects and meanwhile, improve the overall cost management capabilities and market comprehensive competitiveness.