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Research on cost control of engineering project based on critical path earned value method

Author(s): Li Chen, Yibo He

With development of market economy and progress of building construction technology in our country, more and more importance and affirmations are attached to the cost control of construction project which is also viewed as a hot issue in the construction field. Various forecasting analysis methods appear in the research course. The earned value method discussed in this paper is a outstanding one. It should be recognized that compared to other projects, the construction project is characterized by large scale, long cycle and significant external influence, so the whole earnings of project and the core competitiveness of enterprises will be profoundly impacted by the specific management process. The cost and progress are two core objectives in the management process of engineering projects. The earned value management method studied in this paper is a cost control and management method that has been widely accepted throughout the world at present. The introduction of this method in the cost control will not only effectively improve the management efficiency of engineering project, but also has an important practical significance to guarantee the economic profits of construction enterprises. The earned value method is actually a conventional method for controlling and supervising the “cost—progress” of the construction projects and can assure the successful completion of construction projects by cost control and time limit control.

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