1. Application of construction cost management

Cost management is the core content of project management.

(1) Construction cost management organization and methods

The following principles should be followed when selecting construction cost management methods:

1. Principle of practicality 2. Principle of flexibility 3. Principle of firmness 4. Principle of pioneering

(2) Basic work of construction cost management

1. Construction cost management measures

Things during project construction Timely, complete and accurate original records of work, materials, machines and expenses must be kept in compliance with the format requirements of cost management. A dedicated person shall be responsible for recording and statistics.

2. Basic principles of cost management

(1) The principle of cost minimization; (2) The principle of comprehensive cost management - comprehensive cost management is for the whole enterprise, all employees and the whole process Management, also known as "three complete" management.

(3) Principle of cost responsibility system

The key to cost responsibility system is to clearly define responsibilities and link them to the reward and punishment system.

(4) Principle of effective cost management

The so-called effective cost management mainly has two meanings. First, the construction project management department obtains maximum output with the least investment; second, it uses the least human and financial resources to complete more management work.

(5) Scientific principles of cost management

Forecasting and decision-making methods, target management methods, quantity-cost-profit analysis methods and value engineering methods can be used.

II. Measures for target control of construction cost

(1) Basic principles that should be followed for target control of construction cost

1. The principle of lowest cost; 2. Comprehensive Employee cost principle; 3. Target decomposition principle; 4. Dynamic control principle; 5. Principle of combining responsibilities, rights and interests

(2) Main basis for construction cost target control

1. Project contract; 2. Construction cost plan; 3. Progress report; 4. Project changes

(3) Methods of construction cost target control

1. Theoretical methods: system , quotas, indicators, price engineering, earned value method.

2. Adopt construction drawing budget control

1. Control of labor costs; 2. Control of material costs - first control material procurement costs at budget prices. The control of material consumption quantity should be implemented through the "limit requisition list". It is necessary for material managers to constantly pay attention to changes in material prices and accumulate systematic market information. When an enterprise has the conditions or funds, it can purchase a certain number of "futures" to balance the demand time difference and price difference between projects.

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