Study On Cost Control Of Construction Material

In recent years,with the booming development of domestic construction industry,the construction market is becoming more and more saturated,resulting in increasingly fierce market competition among internal peers and more and more transparent industry profits.Therefor,lowering the bidding price has become the core means for many enterprises to win projects.If construction enterprises want to win projects in the fierce industry competition and improve their profitability,it is urgent to control the total cost of construction projects,as material cost control is at its core position.Relevant literature shows that 60% of the total project cost is material cost.So how to effectively control the material cost of construction projects is a problem that construction enterprises must consider.Generally speaking,there are many kinds of materials to be purchased by construction enterprises,the price gap is large,and the quantity is not uniform.For the same project,some enterprises can get more than their expected profit,some can not achieve the expected income,or even lose money.The difference of construction technology is not very big now.These two different results occur.The main reason is that the enterprise material cost control methods lag behind and pay insufficient attention to them.Based on the theory of purchasing cost control and inventory cost control,this paper clarifies the definition,composition and effective methods of material cost control by consulting a large number of materials cost control related documents at home and abroad,and establishes the cost control system of construction materials.On the basis of fully investigating the problems existing in the cost control of construction materials of H Construction Company,three main factors affecting the cost control of construction materials of H Construction Company are summarized: procurement factor,inventory factor and turnover factor.Through analysis,it is found that the main reasons for the high cost of materials for construction projects of H Construction Company’s are as follows: lack of unified classification standards of procurement materials,inconsistent inventory management standards,unreasonable procurement methods and unscientific inventory management of suppliers,etc.In view of the above problems existing in the cost control of construction materials of H Construction Company,this paper analyzes the causes and puts forward reasonable improvement measures.Based on ABC classification,economic order quantity(EOQ)and other related material cost control theories,this paper puts forward improvement suggestions from the aspects of optimizing procurement material classification and optimizing procurement method,selecting procurement price control,strengthening supplier management and inventory management,etc.to help H company solve the problem of high construction material cost.On the premise of ensuring the quality safety and construction period of H Construction Company,the optimization of material cost control helped H Construction Company reduce the cost of construction materials and achieve the goal of increasing efficiency as well as improving quality.