Research On The Cost Management For The Phase ? Construction Of Shimao Wulihe Project,Shenyang

Since the reform and opening-up,Chinese economy has been continuously developing very fast while China's architecture economy which holds a large proportion of the gross national production,especially real estate economy has become the most important factor that has a large influence on Chinese national economy,and has also played a key role in the rapid development of Chinese economy.The architecture economy and the real estate economy in China,have been through a twenty-year history of development.Well,some new requirements are set for the architecture and real estate economies due to lower overall profit margins in the industry in the recent years,manufacturing restructuring as well as the environmental policies strongly advocated by the Chinese government.In this environment,the competition between architecture enterprises is becoming more and more fierce,while at the same time more factors such as higher prices for construction materials,drastic fluctuation in construction worker's wages and a big fall in the labor force in the industry gradually post a threat to the survival of these companies.Up to now,more than ten thousand building enterprises have different levels of cost management.In these two years the market competition has become even more fierce than before,when in order to successfully undertake a major project,a large number of construction units struggle extremely hard to defeat each other,some even by bidding at the lowest possible prices,sometimes the bidding price being even lower than their cost price,which thus causes a lot of difficulty to the cost management work during the subsequent contract fulfillment stage for the successful bidder.Therefore,too many problems including how to reduce construction cost,how to ensure the safety of construction staff,how to guarantee project quality,and how to constantly enhance enterprise capability to make profits in the current market as well will decide the success or failure of a project.As an important aspect of construction project management,the cost management project plays an increasingly important role in the project management.The success or failure of a project depends not only on whether it has a reliable plan,but also on whether its cost is well managed.It has been practically proved that the problems in the construction process do not appear at the technical level,but due to the lack of effective and systematic cost management of the project in the process of implementation.The level of project cost management has a profound impact on the status of project management.The paper,in view of both domestic and foreign research results,is based upon a deep,on-site research over a series of problems,including the project's procedures of cost management,the participants of cost management,the project's risk management as well as some problems with the management of cost factors that the subject project has in cost management.Then,using such theories as the overall cost control theory,earned value theory,and value engineering theory as its theoretical basis,and by means of a deep analysis of these problems as well as an integration of the above-mentioned three theories,it proposes an improvement solution by an integrated use of whole-process,multiple-participant and multi-factor cost management and cost risk management,and then analyzes the implementation and effect of such solution for the cost management of the project.Based on the cost management of construction project as the core,through the total cost management theory,earned value theory,this paper brings up the effective methods to improve the cost management of project.Through the study of this topic,it is of positive practical significance for the enterprises to further improve and standardize the project cost management in the future,and also has important reference value for the project management of similar domestic construction enterprises.