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Research into Cost Control Strategy in Engineering Construction Project.doc
Research into Cost Control Strategy in Engineering Construction Project
(Yancheng Institute of Technology, Jiangsu Yancheng 224000)
Abstract. Cost control of engineering construction project is to make guidance, monitoring, adjustment and restriction on all kinds of resources and expenses consumed in engineering construction during the formation of the project costs. In this way, it can get rid of the possibly occurred errors in time and control the actual amount of all expenses within the plan cost so as to realize the target of lowering the cost. It aims to reasonably use human resources, materials and finance, to lower the cost and to increase the revenue. It endeavors to improve the management level of engineering project cost and create relatively good economic benefits. This paper takes the improvement of work as the methods and lowering the costs as the target. Through strengthening the cost control, the enterprise management level can be promoted and get comprehensive improvement.
Key words: Engineering construction; cost management; construction project
1.Function of Engineering Cost Control
1)The implementation of cost control is an important method to ensure the enterprise has finished the set cost target. Cost control is a broad set of cost accounting methods and management techniques with the common goal of improving business cost-efficiency by reducing costs, or at least restricting their rate of growth. Businesses use cost control methods to monitor, evaluate, and ultimately enhance the efficiency of specific areas, such as departments, divisions, or product lines, within their operations.
2)The implementation of cost control is to lower the product costs, to increase benefits and to improve the economic efficiency. The objective was often to be the low-cost producer in a given industry, which would typically allow the company to take a greater profit per unit of sales than its competitors at a given price level.
3)The impleme
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