The Application Of The Earned Value Method In Real Estate Project Cost Control

The real estate industry is an important pillar industry in China, and it has made great contribution to national economy and social development. In the real estate project management, cost control is extremely important. However, cost control in real estate project is relatively rough, and cost overruns phenomenon often happens. To solve this problem, this paper has introduced the earned value method in order to improve the efficiency and effectiveness and provide theory and method for cost control in real estate industry in China.This paper analyses the typical real estate project management mode and its characteristics. In view of the connotation, characteristics, principles, processes and methods, this paper analyzes the cost control problem in project. The origin, connotation, principles of the earned value method and its relationship with project management are also focused on.This paper introduces the present situation of project management in Shandong Fenghui Group and analyzes the factors that affect cost control of project. On this basis, it puts forward the cost control problems of project such as inadequate overall plan, rough cost accounting, too much project change and neglectful quality cost control. Through the above analysis, the paper puts forward the reasons for this which include non-standard system, weak awareness, imperfect institution, outdated method, unordered change, invalid execution of cost control of project.This paper describes the cost structure and control principle of the real estate project, and its correspondency with the earned value method. Thus it provides the guarantee for the comprehensive application of the earned value method. After expatiating the three basic parameters of earned value, planned value and actual cost, the paper detailedly deduces the progress and effectiveness of using the earned value method in the cost control of real estate project with A project as an example.