Research On Cost Management Of Real Estate Projects

The high prices and excess profits era of real estate industry has largely weakened thefocus on cost management of Chinese real estate enterprises, spawned the short-term ideas,"valuing source (ie. value marketing), contempting throttle (ie. contempt costs)" of anumber of real estate companies and led to the current overall backward cost management ofreal estate enterprises. However, the advent of little profit era and Red Sea competition haslargely contributed to the concern and attention domestic real estate enterprises paid to costmanagement.In this paper, X Company A project is selected for the study to research and analyze thedeficiencies of cost management in the course of the project. Then according to the author’swork experience and combined with cost management theory, this paper proposesappropriate methods to improve cost management. Study found that A project uses costmanagement mode and doesn’t locate well. What’s more, there is no standardization forcontract management, which led to a substantial increase in cost and low yields of theproject.Then this paper combines the cost management theory of real estate. In the planningand designing stage," designer bidding system ",""set standards for cost,"" plan aheadcontracts " and other ways can be used to improve cost management; in the constructionphase," increase alternative unit in mining trick "," strengthen contract management"and " dynamic cost " and other ways can be used to improve cost management;in the finalacceptance stage, third-party inspection and other ways can be used to ensure the quality ofthe project and help to achieve improvements in cost management.