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Study on Construction Cost Management of Beiyuan Residence Project

Author: ZhenJingXin
Tutor: ChaiGuoRong
School: Lanzhou University
Course: Business Administration
Keywords: Cost management Earned value Variance analysis Dynamic control
CLC: F285
Type: Master's thesis
Year: 2011
Downloads: 385
Quote: 1
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Abstract


After decades of development, Chinese construction enterprises have greatly improved in all aspects. Construction technology and mechanism level have appeared qualitative leap in the past, which are not still the major difficulty in engineering. However, there still is a long distance from international project management. If construction enterprises want to play a role in competitive market, they have to minimize the construction cost under the basis of quality and procedure of the project, which determines enterprises to change traditional management mode. In order to maximize the profit, foreign cost management methods need to be adopted and implemented.The thesis firstly stated the relevant theories about project cost management and PDCA cycle theory, as well as Earned-Value theory, which is commonly-used in cost data analysis. Then, the dynamic cost control principle was introduced. After theory statement, the thesis focuses on the current situation of Beiyuan Residence Project, including current cost plan, procedure plan as well as the cost management approach adopted at present. Afterward, according to PDCA cycle theory and dynamic cost control principle, together with Earned-Value theory, the cost management situation of Beiyuan Residence Project is deeply investigated.The thesis analyzes the data add up to 6 weeks of project. To begin with, the thesis takes advantage of traditional data statistic method, on the basis of one month as a stage, the cost variance within the first 4 weeks is analyzed. After this, on the basis of 2 weeks as a stage, the cost variance of each 2 weeks is respectively analyzed. Two analytical results are compared with each other after analyzed. Next, according to the engineering design change, the cost variance within the last 2 weeks is analyzed. From the above analyses, the thesis points out the problems in current cost management and analyzes the causes of these problems.The next, a new scheme about cost management for Beiyuan Residence Project is redesigned. For the problems of disordered cost control, unclear emphasis of cost control, out-dated management methods, certain approaches are put forward. First, Pareto principle is used for a qualitative analysis in current cost management, as well as Experts Grading Method is used for a quantitative analysis, which helps to make clear about the emphasis of cost control. Second, the present approach was analyzed according to labor, material and mechanism, resulting in the newly designed scheme. Then, a series of scientific cost control system is established, including standard system, obligation system, and method system. A reasonable cost control system was designed for the project. Finally, the thesis introduced the implementation ways from 4 aspects and talk about the content, conclusion and outlook of the paper.The thesis adapted theoretical introduction and data analysis, with international commonly-used cost control theory, the shortcomings of traditional cost control management were pointed out, which made great significance in reality. After decades of development, Chinese construction enterprises have greatly improved in all aspects. Construction technology and mechanism level have appeared qualitative leap in the past, which are not still the major difficulty in engineering. However, there still is a long distance from international project management. If construction enterprises want to play a role in competitive market, they have to minimize the construction cost under the basis of quality and procedure of the project, which determines enterprises to change traditional management mode. In order to maximize the profit, foreign cost management methods need to be adopted and implemented.The thesis firstly stated the relevant theories about project cost management and PDCA cycle theory, as well as Earned-Value theory, which is commonly-used in cost data analysis. Then, the dynamic cost control principle was introduced. After theory statement, the thesis focuses on the current situation of Beiyuan Residence Project, including current cost plan, procedure plan as well as the cost management approach adopted at present. Afterward, according to PDCA cycle theory and dynamic cost control principle, together with Earned-Value theory, the cost management situation of Beiyuan Residence Project is deeply investigated.The thesis analyzes the data add up to 6 weeks of project. To begin with, the thesis takes advantage of traditional data statistic method, on the basis of one month as a stage, the cost variance within the first 4 weeks is analyzed. After this, on the basis of 2 weeks as a stage, the cost variance of each 2 weeks is respectively analyzed. Two analytical results are compared with each other after analyzed. Next, according to the engineering design change, the cost variance within the last 2 weeks is analyzed. From the above analyses, the thesis points out the problems in current cost management and analyzes the causes of these problems.The next, a new scheme about cost management for Beiyuan Residence Project is redesigned. For the problems of disordered cost control, unclear emphasis of cost control, out-dated management methods, certain approaches are put forward. First, Pareto principle is used for a qualitative analysis in current cost management, as well as Experts Grading Method is used for a quantitative analysis, which helps to make clear about the emphasis of cost control. Second, the present approach was analyzed according to labor, material and mechanism, resulting in the newly designed scheme. Then, a series of scientific cost control system is established, including standard system, obligation system, and method system. A reasonable cost control system was designed for the project. Finally, the thesis introduced the implementation ways from 4 aspects and talk about the content, conclusion and outlook of the paper.The thesis adapted theoretical introduction and data analysis, with international commonly-used cost control theory, the shortcomings of traditional cost control management were pointed out, which made great significance in reality.

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CLC: > Economic > Economic planning and management > Infrastructure the economy > Basic Development Finance Company ( construction unit Finance)
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