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With the ceaselessly increases of investment on enclosure of mudflat at Shanghai, both government and the owners wish to use construction funds highly efficiently, to ensure optimum use of capital and successful project completion according to the owner’s high quality cost control and management. Compared with general water conservancy project, poor construction condition, long period, easily affected by hydrological, meteorological, topographical, geological factors are outstanding feature of mudflat enclosure. As the affection of the external policy constraints, the internal poor construction conditions, the owners must constantly update and innovate the project cost management system to reduce costs and save investment.This topic will adopt research framework of theoretical research-specific countermeasures -- empirical analysis. By using the method of literature interview, summary analysis and related technical analysis, based on the significance of researching the cost management optimize in mudflat enclosure project, through cost management basic theory research, combined with the present situation of owner’s cost management in mudflat enclosure project, this article will analyze the problems and reasons of project cost management methods of the owners. And then, put forward the optimization opinion on establishing a rational cost management system, cost management on other important node point in the construction cycle and risk control. Finally, analyze the AB project, promote suggestions on cost optimization of owners’in mudflat project.
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