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Project construction cost control and management suggestions

Time: September 11, 2018 11:35:53 paper I want to contribute

Project construction cost control and management suggestions

   Abstract: In today's increasingly fierce economic competition in the construction market, construction enterprises must strictly control and manage the construction cost in order to maximize the economic benefits if they want to establish a foundation in the economic market and obtain greater benefits. To provide high quality, low consumption and good safety performance of excellent construction products at low cost.

 Project construction cost control and management suggestions

   key word: Cost control; Cost management; economic performance

With the development of market economy, the competition of construction enterprises is becoming increasingly fierce, which tends to be white hot. In order to strive for projects, enterprises often adopt the strategy of making profits and win the bid at low price in the process of bidding for construction projects. In this way, the economic benefits brought by construction enterprises become thin, which requires the construction enterprises to optimize the cost in the construction process, so as to achieve the maximum economic benefits with the minimum cost. In this way, cost control and management is particularly important, in recent years, enterprises have increasingly attached importance to it. This paper analyzes the status, problems and suggestions of project construction cost control and management.

   The position of cost control and management in project management

The so-called construction project cost management is from the project bidding quotation to the return of project deposit, which runs through the whole process of project implementation, including cost prediction, cost planning, cost control, cost accounting, cost analysis and cost assessment. With the international standards, learn from foreign advanced project management level, the application of project management in the construction process is more and more in-depth, especially the cost management, more and more attention by the enterprise's high-level personnel, become an indispensable part of project management.

1.1 project construction cost management is the core content of project process management

In today's social and economic system, reflecting the level of management of a construction enterprise mainly depends on whether it can complete high-quality, high-quality construction products that satisfy the owners and customers at a lower cost. In other words, the construction enterprise pursues to complete the products satisfying the customers at a level lower than the social average or even lower. This requires construction enterprises to strictly control the cost, make rational use of resources, and save resources, so as to save every brick, every square wood and every tile. Project management focuses on cost management. Once the cost is out of control, it involves many parties, which not only brings benefits to itself, but also creates good sustainable development cooperation among enterprises.

1.2 cost management is an important basis for performance appraisal of project management department

The project management department is an organization set up by the construction enterprise in order to complete the construction task of a certain construction project. It is an organization which is established and led by the project manager under the support of the enterprise, and is a project management team composed of project manager and management personnel of technology, production, materials, cost, etc. The project management department is the direct implementation organization of the construction task of the construction project. The assessment of the project management department involves all aspects, but cost control is an important aspect. The enterprise carries out cost control on the project project through the project management department to obtain the maximum benefits. The implementation of construction project cost management is not only an important basis for the assessment of the project management department, but also conducive to the establishment of a healthy and positive leading group.

   Some problems in cost management

In today's construction environment, there are still many problems in cost management. Now, the main problems are listed to make a brief description.

2.1 the awareness of cost is weak, and there are phenomena that only do not calculate, omit to calculate and increase cost

In the actual construction, the construction enterprises only know how to do things according to the requirements according to the problems, changes and changes raised by the owners, so it is difficult to follow up the increase of costs synchronously, sometimes even do not calculate the costs; In some cases, technology is out of touch with business, technology changes, business is not clear and calculation is omitted; Some of the on-site management personnel have no cost awareness, in order to live well, increase the working face, resulting in increased costs and so on.

2.2 the personnel quality is low and the sense of responsibility to the enterprise is not strong

At this stage, compared with other industries, construction enterprises generally have low education level and low cultural literacy of personnel, which are prone to problems in the process of work, as well as a weak sense of responsibility for the company. Construction enterprises implement the construction tasks of construction projects through the project management department, which is a temporary organization with large flexible changes. The personnel are all assembled from all over the world. Although there are provisions for the project management department to sign the letter of responsibility, in reality, it is often a decoration, which can not be implemented by individuals and can not play a regulatory role, What the staff think in their mind is to work and take money to leave. They don't care about the operation of the project. They don't pay attention to the use of materials and cost control. On the contrary, how to facilitate and how to come about will increase the construction cost virtually.

2.3 the reward and restriction to the project management department is not enough

Nowadays, construction enterprises usually sign the project objective responsibility statement with the project management department to confirm the smooth progress of the construction project. After signing the target responsibility letter, the management of some construction enterprises almost devolves the decision-making power of the whole project to the project manager, which leads to the project manager's excessive power in the project, and even directly confirms the purchase material price, the subcontractor, the project manager and the project manager Labor construction team and so on, appear the phenomenon that the price is too high and the enterprise benefits are lost. What's more, the enterprise's reward for the project management department is not in place, doing more and doing less, doing well in bad, saving and waste, treating equally, and not rewarding individuals, which leads to employees' slack in work and, to a certain extent, unfavourable cost control.

   3. Suggestions for cost management improvement

It is impossible for any enterprise to completely solve the problems existing in cost management. There are too many uncontrollable factors and personnel factors. However, there are still ways to reduce the impact on cost management. The following is a few suggestions on the improvement of cost management combined with practical experience.

3.1 strengthen the concept of cost management

Enterprises should strengthen internal management, strengthen internal training mechanism, and urge all project managers including project managers to have the concept of economy, benefit and cost. They should make an article from the leading group and strengthen the overall awareness of cost management.

3.2 provide technical support and reasonable construction scheme

Before the implementation of the project, the chief technical engineer must go out and improve the reasonable construction scheme, which shall be approved by the owner for future business department to calculate accounts. In view of the uncertain factors in the process, resulting in the increase of project cost, the technical proof data Timely supplement and request the owner for confirmation, so as to be used in the settlement of disputes.

3.3 do a good job in the process of data collection, and do a good job in the business budget personnel and on-site integration

In view of the change and visa in the process, the cost personnel shall timely collect evidence on site, collect data and submit it in time. Site construction management personnel and business budget personnel to achieve seamless docking, strive not to derail.

3.4 establish civilized, safe and orderly site construction system

In order to achieve safety and order in site management, the layout, material stacking, waste pool establishment, etc. must be in accordance with the national requirements for safe and civilized construction and reasonable site construction, so as to reduce the confusion and waste of materials stacking and secondary handling. There are many practical suggestions on cost management control in actual construction. In this paper, the above four suggestions are put forward for reference. Cost management is an all-round management. It can't simply show that it is a calculation of money and accounts. It should be considered comprehensively in advance from the beginning of the project, so as to comprehensively strengthen the cost management awareness of personnel.


Cost is the embodiment of the comprehensive management level of construction enterprises, and it is also the key factor that determines the position and share of construction enterprises in the market economy competition. Only by optimizing the cost can construction enterprises remain invincible in the economic market of socialist system. Therefore, cost management and control is a problem that construction enterprises have to consider in production and construction. In this paper, the construction enterprises in the construction process of cost management problems and several suggestions are briefly discussed for your reference.


[1] Liang Guangrong. Cost control in engineering construction. Shanxi architecture, 2004

[2] Deng Tiejun. Construction project management. Construction economy, 2009

[3] he Chengqi, Ma Weizhou, engineering project cost control, China Construction Industry Press, 2013

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