Research On System Construction And Implementation Strategy Of Project Cost Management Of Yu Hai Long Wan Real Estate Project

The real estate industry has come to the era of meager profit and confrontingthe choices of healthily developing or eliminating by market. How to improve theprofit margin through control and reduce cost of construction is the key issue thatcompanies have to solve. The author researched the YULONGHAIWAN projectfrom the aspects of project design, invitation tenders, construction contract, requirelicense and completion settlement, issuing advice for other companies to improveprofit ratio and competitiveness.The paper takes YULONGHAIWAN project as sample, based on the conclusionand analysis of cost management problems, creating the cost management system,which includes target cost, dynamic cost and cost evaluation. Through combinationof management methods and organization methods, issue the improvement advicefor cost control system and the key points should pay attention to.The paper includes five parts as follow:The first part contains the contents of background of the project, structure of thepaper and related theory, analyzing the cost management of real estate industry.The second part takes YULONGHAIWAN project as sample, introducingHONGSHENG company and the project. It also introduces the current condition ofcost management of the project, finding out the problems in project design,invitation tenders, construction contract, require license and completion settlementperiod, and make analysis.Based on the second part, the third parts is to make research and conducttechnical analysis, especially on cost management at designing period, contractmanagement and control at bid invitation period, cost control at construction period,cost management, funds, expenses for the period, financial supervision, expense ofmarketing at completion settlement period. It introduce the whole process of theproject from the beginning of project design to the end of completion settlement,putting forward idea that project design is the key point of cost control, the bidinvitation is the key point of project implementation, contract management iseffective way to lower the cost and control investment. Project construction isprocess to converse the design to buildings and also the phrase of achieving thequality goal and use value. Completion settlement is successful sign of the projectand also the conclusion of all the expenses in contract period. Reasonable capitalcollection and cost control are the core of real estate development.Based on the second part, the fourth parts is to introduce the organizationstructure of project to further explore the organization strategy. It mainly introducethe concept of cost management, proper organization establishment, costmanagement system and measures adoption. It illustrate that the company broughtthe cost management concept, using cost management strategy to improve staff’s concept of cost control, paying attention to information management, riskmanagement, using IT technology. The methods in cost management include targetmanagement, job responsibilities for cost control, project dynamic control andassessment after project.Finally, based on the current theory and problems in YUHAILONGWANproject, combined the knowledge learned in JILIN university and16years’experiences, author makes conclusion as follow.1. Cost management is the most basic guarantee for real estate companies tosurvive and develop.2. To enhance cost control from technical measure and organization are twoeffective ways to increase profit for real estate companies.3. Cost management shall rely on all staff through whole process.4. To pay attention to all aspects in different phrases to reach the target.5. To use proper measures, such as cost target control, job responsibilities,project dynamic management and post evaluation.