Research On The Cost Control Process And Application Of Real Estate Development Projects

“In the internal of an enterprise, there are only the costs.” This classic phrasewhat was said by the father of modern management Peter Drucker is for the currentdirection of the real estate companies to make a footnote. Real estate companies mustchange the past land benefit model into the management benefit model, and need tostrengthen internal management, so as to the path of the fine cost management.Based on the cost control theories and methods of real estate projects and theexperience of real estate project cost management, this thesis studies the real estateprojects in the process to implement dynamic cost control by application examples.The thesis presents ideas for a focused point of the whole process of cost control,contrary to the problems in the project, to build an effective strategy in the process ofcost management and control points completely, in order to achieve effective costmanagement control of key sectors of the real estate development projects. The thesisestablishes and improves a modern cost control system for the domestic real estatedevelopment enterprises,so that the companies achieve the purpose of enhancing thecore competitiveness.The thesis highlights the practice of real estate cost control, closely combinedwith the Taihu Jinyuan project. Real estate companies should establish real estatemanagement model which is based on the whole process of cost control and targetcost management, then optimizing gradually in the establishment of cost controlinstitution, system and process. In the stage of the whole process such as findinginvestment opportunities to the new project, screening investment opportunities, thefeasibility of study, obtaining land use rights, design and program approval, signingthe cooperation agreement, construction of the building and final acceptance,marketing and property management, the thesis makes recommendations on thecontrol points and strategies of cost control, especially on seven key aspects of theinvestment decision-making,the design, the bidding, the purchasing, theconstruction,the marketing and the delivery. Real estate companies should give fullplay to the subjective dynamic cost management features, to strengthen the advanceplanning, during the process and ex-post evaluation, thus contributing to the fullimplementation of cost management objectives. The thesis on analysis of the cost control process and application of real estatedevelopment projects has the theoretical and practical value for enterprises to do thefurther refinement of cost management and improve the control ability.