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Analysis of project cost control in construction project based on the law of value analysis

Author(s): Yonggang Bao

With the development of society, the internal situation of construction project has change a lot. The separation of technology and economy is becoming more and more obvious, which makes it difficult to control the project cost reasonably and effectively, resulting in the phenomenon of out of control. So, at present, the control of project cost is an important problem in construction project management. The theory of value engineering is a modern management technology produces along with the demand of society and it is an economic analysis method. The introduction of the value engineering theory into project can make the use of resources reasonably to achieve the maximum value. The value engineering theory introduced in the design stage of construction project can control the project cost and ensure the optimization of construction investment and resource utilization. This study introduces the basic theory of project cost management and value engineering and it analyzes the development situation of engineering project cost management at home and abroad as well as the research status of the application of value engineering in the design phase. For the problem that the investment to the construction project is out of control in China, the paper carries out the analysis of project cost controlled by construction project based on the value engineering. It compares the foundation engineering of a construction project to research on the value coefficient of the original foundation engineering scheme and the engineering scheme optimized by the value engineering. The result shows that the value coefficient of the engineering scheme optimized by the value engineering is much larger than the original scheme which illustrates that the optimized scheme realizes the same function with the original scheme with less project cost and improve the economic benefits of enterprises better than before.

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