STUDY ON COST CONTROL IN THE CONSTRUCTION INDUSTRY BASED ON VALUE CHAIN THEORY - TAKE CHANG'AN CONSTRUCTION COMPANY AS AN EXAMPLE

Abstract

In the face of scarce resources and the law of competition for survival of the fittest, cost control is an eternal topic for enterprises. In traditional accounting, people tend to pay too much attention to the cost of product production. The control of cost is concentrated on the manufacturing cost within the enterprise, and only a single driving factor is the cause of the cost. This causes the traditional cost control to be more and more unable to adapt to the development of modern enterprises. 
 The research objectives of this paper were: 
 
 To analyze the structure of Chang'an Construction Company's value chain.
 To analyze the cost control of Chang'an Construction Company when doing a project based on its value chain structure.
 
 This paper adopts the case study method, starting from the theoretical foundation of value chain cost control, to study the cost control system based on the value chain of Chang'an Construction Company. It seeks to gain relevant insights and draw conclusions from the analysis. 
 Through the in-depth study of value chain cost control in Chang'an Construction Company, several important conclusions have been drawn. A professional bidding process lays the foundation for cost-effectiveness and project profitability. The region-specific strategy adopted by Chang'an Construction makes bid preparation relevant and effective. The division of cost management into preparation and construction phases is critical. Careful cost planning, based on comprehensive site analysis, guides spending during the construction phase. Ongoing monitoring and timely adjustments are critical to align with that plan. Post-completion is not only an end point but also a phase of reflection and optimization of strategy. Efficient resource allocation and regular stakeholder engagement at the end of a project not only reduce future costs but also enhance a company's reputation.