Real Estate Project Life Cycle Cost Management Theory And Applications

The cost management is the foundermental content of the management of the real estate projects. The cost management is to achieve scientific management, effective use of funds and standardize the market order, and ensure the quality and safety, and promote an important means of technological progress. At the same time , cost management of real estate projects runs through the processes of investment decision-making, survey, design, bidding, construction, inspection and maintenance .Therefore, investment in real estate projects increase its efficiency and management level plays an important role in promoting cost management. Practice has proved that the rational use of funds and strengthened cost management are important for the fundamental interests of the developers and investors and for the operation and the improvement of quality of the sustainable development of real estate projects.The entire project life cycle cost management theory developed more popular a project cost management theory in developed countries, and is widely used in project management practice. In recent years China began a full life-cycle project cost management theory research, but had not real applications in practice .This paper aims to draw recognition of international and domestic experts to study the life cycle project cost management theory and methods to the entire life cycle of real estate projects at all stages of the main line, explore how to conduct a comprehensive cost management for project developers to ensure that the limited resources are fully used to achieve the objective of maximizing returns on investment.Under the direction of the international and domestic project cost theory the paper make use of systems theory, project management theory, construction management theory, and other modern economic theory, based on the previous period of real estate projects (investment decision-making stage),the preparation period (design phase, bidding stage) and the implementation period (construction phase), project acceptance period (the completion of stage and evaluation phase), operating and maintenance period ,begin with the practices of cost management of the silver soho town project invested by China Minmetals Corporation, develop real estate projects cost management theory and application of research, explore effective management methods and improve investment returns.This paper has great theoretical and practical significance for systematical real estate project life cycle cost management and investment control, also it has some reference value for the various sides of real estate projects on the main responsibility.