Present Situation And The Improvement Research On Target Cost Management At The Design Stage Of China’s Real Estate Development Company

The design phase of China’s real estate development project which only cost lessthan1%effect on investment effect more than75%in the Life Cycle Cost (LCC).Design phase is an important part of real estate development project cost management,in this stage, the economy and rationality of the design and the design quality meet thestandard or not have a great influence on the cost and the performance of the wholeproject in LCC. Therefore, cost control and management at this stage, will produce verysignificant benefits. Because the Design-limited is one of the effective means of the costmanagement in design phase, it is necessary to promote the Design-limited andcomplete the management of Design-limited in design phase, and it is also hasimportant implications.By using questionnaire, this article investigated status of implementation of thedesign-limits in five aspects, including how widely the use of design-limits, themanagement consciousness of design-limits, design-limits management organization,the management effect of design-limits. According to the findings of questionnaire, weknow that the cognitive degree of design-limits management still need to be improved,real estate enterprises need to take the initiative to stimulate the economy consciousnessof designers and architectural design institute,and real estate enterprises also need guidetheir awareness of design-limits.we also know related system about the management ofdesign-limits have not developed, and that most of the time, people are using to setdesign-limits indicator to design-limits management, which has certain limitations.Overall, this work focus only on a few points, not to pay attention to a whole areaAt the same time, thesis identified, analyzed, extracted several factors that influencethe implementation of target cost management at the design stage on the basis ofliterature, interviews with professionals and personal learning experience. And thesissummarized the factors of the implementation of target cost management at the designstage into three main factors: the organization and management regulation of target costmanagement at the design stage, the process management and methods of target costmanagement at the design stage and the conscious of design companies of target costmanagement at the design stage.According to the results of survey and analysis, this paper presented themanagement responsibilities and corresponding regulations from four aspects: the organization of target cost management at the design stage, the process management andmethods, the management of design companies and the post evaluation of target costmanagement at the design stage.