In the first step, the project manager determines cost control objectives and cost reduction objectives based on the project's cost contract objectives, which should be lower than the latter." The second step is to break down the cost control objectives and cost reduction objectives of the construction project according to the sub-projects to determine the target cost of each sub-project. The third step is to implement the internal cost contract according to the target cost of the construction project, so as to determine the cost contract responsibility system of each contractor. "In the fourth step, the project manager organizes the teams of contractors to identify technical organizational measures to reduce costs, simulates the effectiveness of calculating cost reductions, and develops a cost reduction plan that compares with the project manager's cost reduction objectives before making a final decision to modify the cost reduction plan after repeated cost reduction measures." The fifth step is to prepare a cost reduction technical organization action plan, a cost reduction plan and a construction project cost plan.