Research On Cost Management Of BT Company’s Substation Reconstruction Project Based On Earned Value Method

In the development of modern economy and society,the engineering construction industry plays a very important role in economic development,but competition between the engineering construction industries is also becoming increasingly fierce.For engineering construction companies,good project cost management lays a solid foundation for them to excel in competition.The earned value method plays a very positive role in project cost management,which can greatly improve the efficiency of project cost management.The thesis applies the earned value method in the BT company’s substation renovation project,while controlling the cost and progress of the project.It also proposes that the earned value method can be applied to BT company’s project cost management,enabling BT company to develop steadily in the competition of the engineering construction industry.Starting from the research background and significance,the thesis identifies the advantages of the earned value method in project cost management.Next,the overview of BT Company and the substation renovation project were introduced.The current situation of project cost management was described from four aspects: project cost management system,project cost management methods,project cost management implementation,and project cost management effectiveness.It was pointed out that BT Company failed to adopt appropriate project cost management methods,cost and schedule management was extensive,cost deviation sources were unclear,and corrective measures were taken improperly.Applying the earned value method to BT Company’s substation renovation project,by establishing a work breakdown structure for BT Company’s substation renovation project,establishing a responsibility allocation matrix for BT Company’s substation renovation project,preparing a schedule for BT Company’s substation renovation project,preparing a target cost table for the substation renovation project,and calculating cost parameters for BT Company’s substation renovation project by establishing earned value parameters,Identify the main sources and reasons for deviations in BT Company’s substation renovation project,propose effective corrective measures,and compare the project cost before and after the implementation of the earned value method in BT Company’s substation renovation project.Finally,based on the application process of the earned value method in substation renovation projects,the guarantee measures for establishing the earned value method were proposed for BT company.The thesis provides effective assistance for BT Company to solve project cost management problems and establish a comprehensive cost management system,providing reference for similar projects.