Research On Project Cost Control Of MQ Highway Engineering Company Based On Earned Value Method

The rapid development of my country’s economy has promoted the rapid and rapid development of the transportation industry,the number of road construction companies has increased significantly,and the market competition has become increasingly fierce.In this economic environment,road construction companies must improve their core competitiveness if they want to gain a foothold in the market.The key to improving market competitiveness lies in improving profitability,which is mainly achieved through two aspects: improving technology and controlling costs.The former is difficult to achieve major innovations due to the level of technological development.Therefore,road construction companies have to improve management methods and improve Own cost control level to obtain higher profits,so as to gain an advantage in the competition.At present,most domestic road construction companies generally use target cost method and standard cost method in the process of project cost control.The construction unit often thinks that the cost is not linked to the schedule plan,so the cost and schedule are usually controlled separately,but it is actually difficult to pass individual control of costs and schedules to achieve the purpose of dynamic evaluation,poor timeliness,one-sidedness,and even affect the overall benefits of the enterprise.In cost control,project cost and project schedule are interrelated,and both are equally important.Therefore,overall management of schedules and costs can actually have a direct impact on the achievement of project objectives and can also affect the economic benefits of the business.Earned value method is a method to comprehensively control project cost and plan based on data and information in the process of time control,cost control and quality control.Traditional cost control methods often analyze cost and schedule separately,while earned value method combines the two and displays them in the form of data and graphics.This analysis links cost overruns or savings with project progress,and analyzes the relationship between the two to make it more convincing.In addition,the earned value method is also a dynamic management method,which has the advantages of truthfulness,reliability,and timeliness when evaluating project progress,and can accurately evaluate the progress of construction projects.This article takes MQ highway engineering company as an example,selects the most representative R project in MQ company,and applies the earned value method to the R project by collecting the three basic parameters of the budget cost of planned construction,finished work and the actual cost of finished work,as well as a series of calculations,you can get four valuation indices of the following indices.Cost execution,schedule execution index,cost deviation and schedule deviation,and conduct cost deviation analysis.The principle of using the earned value method to comprehensively control the cost and schedule of the project,by comparing the difference between the actual project and the plan,and predicting,adjusting and controlling the remaining tasks of the project based on the difference.It was found that the construction personnel and management personnel of the project had weak awareness of cost control,the ability of cost control personnel needed to be improved,and the cost control system of the project was imperfect;at the same time,there was a lack of joint control of cost and schedule during the construction of the project.Based on the above problems,the corresponding reasonable improvement countermeasures and improvement opinions were put forward for the MQ company R project.Through the application of the earned value method,the feasibility of achieving synchronous control of project schedule and cost is further explained,and the problem of separation of cost and schedule in the past construction projects of MQ company has been improved.On the one hand,the cost management control of the R project was further improved,which greatly reduced the operating costs of the MQ company,and significantly improved the company’s comprehensive benefits.The improvement of MQ’s cost control management level can also bring a virtuous circle to the company and improve the company’s market competitiveness.On the other hand,it can summarize examples and experience for MQ company,so that other similar construction projects have a reference,and it also has a very important reference meaning for improving the comprehensive level of project cost management of construction units in the construction industry.