Dalian Hui Heng Building Decoration Engineering Co., LTD. Project Cost Management Case Study

In recent years, as China's industrial structure adjustment and the speeding up of urbanization, the construction industry, real estate industry and related industries to rapid development, gradually out of the building of specialization, construction decoration industry has experienced from scratch, since the childhood, from weak to strong development course. Architectural decoration industry in China during the period of "11th five-year plan", healthy and rapid development, in the national economy and social development has played an important role, and presents the development faster, better quality, the characteristic of the large development. For the development of the architectural decoration industry in our country at the same time, because of the lack of differentiation between enterprises, make the price is still the main means of competition. With the increasingly fierce competition in architectural decoration industry, the cost of project management, especially in project management becomes the key to building decoration enterprise survival and development.Using case study method, the paper describes the process of real Xishan delicate renovation project, the cost of project management to conduct a comprehensive analysis and discussion. Firstly, the paper describes the background of the case and focuses on the potential risks of projects phase and question constantly changing project the problem about the land construction phase of the potential pitfalls and analysis the reasons of project cost. Thereafter, the paper uses the theory of project cost management, project cost management model improvements from the perspective of cost forecasting, aims, project control, ensure the implementation of countermeasures proposes four aspects, and discusses three process of the design, bidding, construction and settlement and propose the system solutions.Building decoration companies use project management mode, the more the project profit is the main source of business profits, also is the main body of total corporate profits. Project management has become the core of building decoration enterprise management, and project cost management is the starting point and the ultimate aim of the project management. Due to the labor cost and energy, materials prices rose sharply, coupled with high taxes, engineering high margin and withhold, settlement cycle is long for a long time, often face embezzled, default of owners, low price winning factors, such as enterprise declining profitability of the project. In this case, how has the superior price, establish reasonable cost control mechanism is enterprise development bottlenecks, increase market share, the only way to keep the sustainable and healthy development. Therefore, the construction decoration enterprise's rise and fall success or failure is closely related to the project cost management. How to scientifically to the implementation of the project cost management, it is a central issue in the development of architectural decoration enterprise.