An Elementary Discussion about Construction Enterprises’ Material Cost Management

摘要

Cost management is an important component of the construction enterprises′ project management, Effective cost management plays a significant role in promoting the enterprises′ profit space and even the core competence. In the construction projects, material cost accounts for 60%-70% of the total capital cost. Therefore, Material cost management of construction enterprises is the key to cost control of the Construction Project. The paper analyzes the present situation of material procurement and inventory management of the construction enterprises, Then problems existing in the material cost management are proposed. On the basis, two models for improving the material procurement and inventory management are introduced according to the characteristics of the enterprises′ storehouse capacity and location. They are economic order quantity model and zero inventory management model. And the above-mentioned methods have been applied into empirical study to evaluate the effectiveness which will provide for reference for the construction enterprises′ future material cost management.