Abstract: Currently, the prominent issue in cost management of coal enterprises is background of cost management concept, and lack of professional integration. Exploring an effective cost management model is an important approach for coal industry to discover and enhance value strategies. This paper summarizes and refines a set of contractual cost management model by conducting field research on Chengjiao Coal Mine. By constructing the contractual cost management model, Chengjiao Coal Mine takes “contractualization” as its starting point, dividing and clarifying the responsibilities of various entities based on the fusion of professional systems and functional departments. It establishes contractual cost indicators and incentive measures for each responsible entities, addressing the pain points and challenges of cost management at the pre-event, in-event, and post-event stages. The implementation of this model achieves a transformation of staff from passive cost management to active cost management, stimulating the enthusiasm of all employees to participate in cost management. It involves the participation of professional personnel involved in frontline production in cost management, resolving the issue of a lack of professional integration, and improving economic efficiency.