Research methods: Through researching and analyzing the prediction of engineering project cost, cost control, cost analysis, the effective ways of reduction of cost, examining measures of cost, etc, explaining the definite principles of cost goal and making reasonable analysis, judgement and appraising to the cost change of project, the paper confirms the advanced, economical and reasonable cost management model. According to the author's experiences of construction management for many years, the author proposes some new ideas and new thinking of engineering cost management, which achieved very good effect through practice.
Research conclusions: The cost management of project is a dynamic management. We must catch each link influencing costs to take place tightly and take some measures, such as, decomposing responsibility, controlling goal, encouraging examining, etc. We must improve work efficiency and strengthen the dynamical control of engineering cost. Thus the goal of increasing economic benefit can be come true.