Construction enterprise is the pillar industry of the national economy, with the integration of the world economy, operation conditions are increasingly complex. Construction enterprises are faced with the pressure of competition from international and domestic enterprises. In order to survival and development, Construction companies must strengthen cost management. Target cost method is one of the main methods of cost management, which has been widely adopted by the Japanese and the European enterprises, the domestic manufacturing and many other companies also begin to roll in the implementation, but for the domestic construction contracting enterprise, as construction product is single and various conditions change in the implementation of projects, which lead that the target cost of construction project is difficult to determine. The urgent task of modern construction enterprises is how to adapt to the characteristics of current era, using target cost method in order to effectively control cost and enhance the competitive ability and economic benefits of enterprises.
