Research On Project Cost Management Of CZ Municipal Engineering Company

With the rapid economic development and the acceleration of the urbanization process,the Chinese government has increased investment in municipal engineering construction projects in recent years,and strongly supported the reconstruction and expansion of urban roads.However,the prosperity of the industry has brought increasingly fierce competition between enterprises.In order to survive and obtain a larger profit margin,cost control is extremely important for municipal companies.Firstly,based on a literature survey of the development of construction project cost management,management models,factors affecting construction project costs and the cost management status of enterprises in the same industry,the dissertation outlined the theories of construction project cost management in detail,and put forward three cost control methods used in the study as follows: whole-process cost control,target cost management,and earned value method.Secondly,using questionnaire surveys and field surveys,the status of construction projects cost control and the factors affecting cost overruns in CZ Municipal Engineering company were investigated.The analysis found that the company’s cost management has the following problems: determining cost targets based on experience,lack of material cost control,inaccurate cost analysis,and lack of cost assessment mechanism.Finally,based on the principle of full process cost control and important factors affecting construction project costs,plans were formulated for the problems in cost control of CZ Municipal Engineering Company and project A was taken as a case.The dissertation determined target cost scientifically through target cost management,and refined it to individual and various operations to enhance the guidance of the cost plan.It also researched material procurement cost and material consumption to strengthen the effectiveness of material cost control.It combined earned value method with target cost management to accurate cost analysis.Based on the target cost and cost analysis results,established an evaluation system for cost management,designed key performance indicators for each position to standardize cost management.It is hoped that the research could provide some reference for construction enterprises of the same type.