Research On The Cost Of The Life Cycle In Real Estate Projeces

China is experiencing rapid urbanization, in which real estate industry plays a significantpart. As a lucrative business with various players, real estate industry in China is nowdeveloping rapidly, leading to increasingly fierce market competition. It is, however, facinggreater development pressure than in the past, due to economic globalization, thestandardization of real estate market and the macro-economic regulation policies implementedby Chinese government in recent years. Under the circumstance of limited market resources,effective control of management cost in real estate project management is of paramountimportance. Recently, the theory of Life Cycle Cost (LCC) Control, including its concepts,has attracted greater attention. Many Chinese scholars and real estate enterprises are nowactively engaged in the study and application of this theory of comprehensive cost control.This paper conducts a comparatively systematic study on the components of the LLC ofreal estate project. By using the method of systematic analysis and drawing on relatedliterature, it analyzes the main contents of LLC control of real estate project, the priorities andmethods of cost control at every stage and procedures and targets of cost control; at the sametime, it analyzes the application of value engineering in the control of LLC. Finally, this paperstudies the control methods of LLC in real estate industry with cases in real practice.By discussing the application of LLC control of real estate project, this paper proposesfeasible control methods of LLC, which is of practical and reference value to real estateenterprises in respect of their project cost control. Hopefully, this paper can be used asreference for real estate enterprises in their practice.