Research On Cost Control Of Company Z’s Decoration Project Based On Critical Path Earned Value Method

In recent years,as the level of the national economy has been improved continuously,people have higher and higher requirements for decoration and renovation projects.China’s decoration industry has also ushered in a rapid development.More architectural decoration companies have appeared,bringing in intense competition.The labor cost,the decoration material expense and the mechanical equipment rental fee intend to increase year by year.Various factors have caused the profit margin of decoration enterprises to be gradually compressed.For decoration companies,the cost control management of engineering projects is the core of construction project,and the scientific,reasonable and accurate control of engineering project costs will become the key to project profitability.Only by controlling costs,creating absolute advantage in the project price,and achieving the Profits Maximization,can the company stand out in the fierce competition and develop continuously.As a medium-sized decoration company,company Z faces common problems in cost control: careless management of construction projects,antiquated cost management concepts and old-fashioned cost control methods.Serious material waste,unreasonable worker management and imbalanced project arrangement caused mismatch between cost control and schedule control of the project.As a result,the project might spent much more expense than expected but the decoration quality could not meet the target requirements,ultimately resulting in project losses.At this time,Company Z urgently needs to introduce new management methods to reduce costs and improve construction efficiency in order to maximize the company’s benefits.After a large number of literature research,field investigation and data collection of company Z’s decoration projects,the problems of cost control management in enterprise decoration projects were analyzed in detail.The main problems in the cost control management of decoration projects were also explained.This paper will take project F as an example,to implement cost monitoring and management into the project,by using of critical path earned value method.The implementation effect will be monitored.Based on this,new methods for the cost control of the decoration project will be proposed,in order to improve the cost control management of Company Z.This case study showed that critical path earned value method can overcome the disconnection between schedule management and cost control,coordinate the schedule and cost control dynamically and improve the company’s cost management system.These will further ensure the project’s quality,progress and cost,achieve the optimal cost and maximization profit,and eventually enhance the competitive ability of the company.This research proves that the critical path earned value method is a feasible cost control method for decoration enterprises and provides valuable reference for other decoration enterprises to control the cost.