After the whole construction project is decomposed into different levels of operation centers, the next step is to set the target cost for each level of operation. The traditional method is to determine the target cost by floating a fixed percentage according to the budget quota, but with the acceleration of the marketization process, this method has lacked rationality. The determination of the target cost can be divided into two methods: top-down or bottom-up. The bottom-up method needs to carefully examine the time and budget of all tasks, and the process is complex and time-consuming. The grass-roots estimator overestimates the target cost to prevent the superior managers from cutting the budget, and the final collected target cost contains a lot of water. In view of the fact that the project managers of A Construction Company go deep into the grassroots, have rich experience and have a deep understanding of the market and construction projects, it is feasible to adopt the top-down method to set the target cost.
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