Research On Land - Level Development Cost Management

Land is the basis for human survival and development. A distinctive feature of China’s land management system is the separation of ownership and use rights. In late 1990 s, the nation issued series of policies and regulations, established land reserve system, required the land for commercial use must go through the "bidding, auction and listing" procedure in the land market, and officially separated the primary and secondary land developments. The primary land development has been explored and developed for more than ten years. In the operation mode, development process, financial management and other aspects, the government has gathered a lot of practical experience. During the practice of primary land development, cost is the core issue of the operation of primary land development projects. However, there are still a lot of cost management problems that are calling for immediate solutions. Based on the basic understanding of the cost management of primary land development, this paper analyzes the cost management problems of primary development that enterprises encounter and gives advices and solutions accordingly.This paper first described the background of the generation of primary land development, analyzed the primary land development’s patterns, especially described the characters that a enterprise performs under the current pattern, depicted the land development cost structure and its characteristics, briefly explained how a primary development cost management processes, its content, and its features, highlighted the effects of enterprise’s participation in the cost management. Secondly, the paper analyzed and summarized the main issues of cost management that enterprises encounter in primary land development, which mainly represented as lack of overseeing the whole cost management process, formalized cost prediction, lack of enforcement in cost control, etc., and came up with solutions and strategies targeting those issues. Finally, cases are introduced into this paper. With case analysis and study, the author is able to give suggestions and solutions to cost management issues in specific projects, therefore enhances the enterprise’s cost managing ability.