The Whole Process Cost Control In The Residence Development Under The Pricing Mode Based On Bills Of Quantities

As a mainstay industry of China’s economy, real estate industry plays a vital role in the national economy, which is also related to People’s livelihood. To avoid wasting, effective control of real estate investment which is a huge investment, can save valuable development for the state capital. Along with the increasingly stringent of real estate control policy in China this year, the financial pressures and investment risk of the real estate companies are also growing to increase. That is why the control of project costs and the reducing of costs are referred to an unprecedented level in the enterprises.The quotation based on Bill of Quantities (BQ method) is an international valuation methods used commonly for centuries. China began issuing the implementation of the Bill of Quantities on July1,2003and achieved the change of project cost method from the quota valuation mode to Bill of Quantities mode, which is China’s construction cost of a major reform in the area."Bill of Quantities norms"(GB50500-2008)promulgated and implemented in December2008is more comprehensive and more operational, which summarize experience and results achieved form "Bill of Quantities norms"(2003).Our country has promoted valuation with bill quantity from2003. this mode inconformity with market economy puts various factors such as economy, quality, progress under the full consideration in determining the price. And it appears in the form of live unit price", does scientifically and accurately, fundamentally avoids formalist valuation of quota. The Price mechanism of the market is gradually forming in the construction field, which provided a more fair competition environment to every construction enterprise that participates the bidding and the freedom degree of the bidders’bidding consumedly increased.With the issuing and carrying out of "Standard of Construction Pricing Mode Based on Bills of Quantities", a new construction Pricing mode comes into being. The new pricing mode suggests new idea and method for controlling construction cost to owners. From this point, according to the characters of B.Q, it is necessary to build and form new construction cost controlling idea. Construction cost management involves widely. This work is very uncertainty. Some unpredictable items will happen in the course of project. So controlling the cost of whole course is very necessary. Based on the process of the real estate development, this paper analysis the problems and status in cost control of the various stages about the current real estates enterprises in China, comes to the conclusion that the project cost management must change the mind that only focus on the cost of the construction and completion settlement stage, must use the whole process of dynamic cost control methods.The Parlance of Entire Process Management of Construction Project Cost(EPMCPC) is a bran-new ideology in the engineering cost field proposed by Former State planning Commission in No.30file of planning Standard(1988), in the project cost management areas, from the1990s, the project cost at home and abroad circles attach great importance and concern to the theory and methods research of EPMCPC. After years of study, EPMCPC of the basic concept has been established, but under the bill of quality valuation model, there are still many problems in the theory and methods of the whole process of the corresponding specific cost management.This paper stands in the angle of the real estate development companies, under the Bill of Quantities mode, introduces the engineering cost control significance and existing problems in each phase of the commodity residential development project construction, such as the investment decision-making stage, design stage, the bidding stage, construction stage and completion settlement stage. This paper puts forward the method and measures to make reasonable project cost targets and effective control of the project cost, proposed solution and analyzed by real cases at last. This paper comes to a conclusion that project decision-making stage is the basis for project cost control, proposes to base on beforehand control and active control, strengthen the construction project feasibility study, strictly control the investment estimate, scientifically make the project investment financial evaluation, follow that can fundamentally solve construction project investment decision-making errors and cost out of control problem, project design stage is the key to project cost control, proposes to adopt quota design and value engineering theory in the design phase to control the cost of commodity residential design, and through the bidding for the design and BONUS-MALUS measures prompt the design unit to control the engineering cost actively and spontaneously in the design process. Project bidding stage is the focus of Project cost control, points out the tender stage is the complex stage in distribution of interests, easy to produce the unfair competition, cannot choose excellent construction unit, result in cannot reduce project cost. Proposes through the perfect invite tender under the bill of quantities method using the lowest bid reasonable principle can control the cost. And the Project completion stage and closing stage is the chief difficulty point of the construction cost control, pointed out that in the implementation of the project construction cost control, should pay attention to several important segments. Such as the control of the time limit, the cost control of the design change, the cost control of construction site visa, the cost control of checking drawings, the paying control of the total subcontracting fee and the progress payment, and the cost control of the material and equipment procurement. And finally puts forward the influence factors and the specific control measures in each link.Finally, according to the legal person responsibility system of Chinese real estate development enterprise, and the current situation of cost control on commercial residence development, this paper puts forward the idea that setting up a cost control department in real estate development enterprise, and points out that the real estate development enterprise should use cost control department to organize the implementation of the estate enterprise reasonable construction development project, coordinate with construction unit, relate national departments, the construction units, local government departments and many relations, and deal with various kinds of preliminary planning work and to go through various kinds of early days formalities, solve the construction appeared in the process of management, quality, technology, economy and other various things. And this paper gives a detailed description about the cost control system of cost control department.This paper will do some research in the theoretical system from whole process angle in order to provide reference of controlling construction cost for proprietors.