Study On Project Cost Management Improvement Of Chenguang Construction Company Based On Value Chain

The construction industry is a material production department engaged in the survey,design,and construction of building engineering projects,as well as the maintenance of original buildings.The industry helps the national economy build productive and non-productive fixed assets.Generally,it is listed as the three pillars of the national economy together with the steel industry and the automobile industry.As one of the pillar industries in our country,the construction industry has developed rapidly since 1978 and has become an important force driving the rapid growth of the national economy.In the past few decades,China has promoted the urbanization process at an unprecedented speed.The continuous progress of that process also indicates a broader market prospect for the construction industry.After years of market rectification,system construction and strong supervision,the Chinese construction market has begun to enter a healthy development track.However,the continuous increase in the number of construction companies has made market competition increasingly fierce,forcing companies to adopt ways of reducing profits to maintain their survival,and thus the industry’s profit rate has been maintained at a low level.The construction industry is a traditional industry with a relatively high proportion of cost expenditures.Therefore,having a low-cost advantage can make it easier for companies to obtain long-term value appreciation.In the fierce market competition,only by adhering to a scientific and reasonable cost management strategy can companies establish a competitive advantage and seek space for survival and development.It can be seen that the study of cost management activities is of great significance to the development of Chinese construction enterprises and industries.This thesis selects Hunan Chenguang Construction Engineering Co.,Ltd.as the research object,uses value chain,cost management and other theories,and adopts methods of literature research,case analysis,investigation research and comparative analysis to study its project cost management.After fully collecting relevant information about the project management through field inspections and conversation investigations,this paper uses value chain tools to sort out the current status of project cost management,and finds out three problems in project cost management,such as disconnection of cost management,unclear responsibility subject,and lack of supplier and customer management.Then,the thesis analyzes several reasons such as neglecting the impact of value chain activities on cost management,lack of cost performance appraisal system,and weak cost control awareness of employees.Furthermore,it proposes targeted improvement measures from the aspects of management process,organization,management system and awareness training,and provides support and guarantee through smooth internal information exchange channels and strengthen contract management.This thesis believes that from the perspective of the value chain,the cost management of construction companies can re-allocate internal resources,and jointly improve the connection between the basic activities and auxiliary activities in the value chain from internal and external.It has practical significance for the development of project cost management in domestic construction companies.The thesis applies value chain ideas to the actual cost management process of specific construction companies,which not only enriches the literature,but also provides a useful reference for similar companies to improve their cost management.