The project cost is refers to the monetary performance for the realization of project target cost resources. From the financial point of view, the cost is divided into direct cost and indirect cost. Direct costs refer to costs related to the project activities in the consumption of the project outputs direct contribution, including labor costs, material costs, equipment and equipment acquisition costs, site funds etc.. Indirect cost refers to the project output to form the direct quantitative relation of resources, including fixed assets depreciation costs, management costs, marketing costs, financial costs etc.. Project cost reflects all aspects of project work, is a comprehensive index of project quality inspection. A comprehensive system of management of project cost management is the project expenditure, to optimize the project cost. Project cost management process including: resource planning, cost estimating, cost plan and cost control.

　　1, resource planning

　　Resource planning is needed to complete the project resource type, quantity and use plan file. Through the analysis of the work breakdown structure, scope, schedule, resources and reserves, the policy of the organization, the file, can determine the completion of the project resource needs; the project through the internal and external resource analysis, can determine the resource availability, cost and the combination model. According to the different tasks of the resource demand of resource allocation to it, and the quantity, the resources required for the acquisition methods, the use of time aggregation, and optimize and balance resource according to the priority after the formation of a resource plan.

　　2, cost estimation

　　Cost estimating is approximate estimation of each stage of the costs of the resources needed and the total cost. For example, in the engineering construction project, cost estimates can be divided into investment estimation, design budget, construction budget, tender and bidding.

　　3, cost budget

　　Cost budget is refers in the premise of cost estimation, using appropriate methods of the costs assigned to each unit of work up, determine the project the actual implementation of the benchmark. Cost budgeting is an expected or future costs, is the basis of cost control. The most important target decomposition cost expense budgeting and planning process is the content of the project. According to the target and requirements of cost control, cost target decomposition can be divided according to the cost, according to the sub project, according to the time of decomposition of three types. The budget will eventually form the cost budget, time cost accumulative curve or integrated decomposition cost budget table file.

　　4, cost control

　　Cost control, previously established according to a certain period of cost budget target, take on a variety of factors and conditions of cost of a series of prevention and control measures, to ensure that the project final management cost control in the target range. Cost control generally include comparison, analysis, prediction, rectification, check the five steps.

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