Research On The Cost Management Optimization For YataiLan-Mansion Project

Abstract:As the real estate industry in has a short history and the management of the real estate corporation is still relatively extensive, the real estate corporation in China has its own unique process and characteristics in its development and growth. Along with the increasing maturity of the real estate market development and the rising competitiveness in market competition, real estate enterprises focus much more heavily on the cost management and control capabilities. If Tianjin Yatai-Lanhai Investment Co.Ltd. wants to achieve the transformation from extensive management to intensive management, it should pay high attention to the cost management which is a key part of the company management. In order to gain an advantage in the competition, Tianjin Yatai must find a suitable way of cost management and take cost management capability as a part its core competitiveness.This paper takes Lan-mansion project of Tianjin Yatai-Lanhai Investment Co.Ltd. as an example. Firstly, it introduces the background of Chinese real estate and related literature review, analyzing the significance of this topic. Secondly, the relevant theoretical basis for cost management of the field of real estate development project are introduced, including cost management theory, the cost structure of the real estate business, factors affecting the cost and the status quo of cost management in China’s real estate industry. After that, combining the status quo of Lan-mansion’s the cost management, this paper describes several problems of this project, including:during the election, the project phase, Yatai lacks a more comprehensive project feasibility analysis and cost estimates; during the design phase, Yatai fail to correctly handle the relationship between technology and economy, paying little attention to the economic rationality of design scheme; during the construction phase, Yatai makes a less reasonable arrangement and bidding procedures are not standardized; during the completed phase, Yatai is too hasty to make a project acceptance report, regardless of the quality problems and the unreasonable cost control. Finally, with the related theory basis and the working experience of the author, this paper optimize the design on Lan-mansion’s cost management:during the election phase, Yatai should focus on controlling the cost of land, along with the strengthening normative of human resources management; during the design phase, Yatai must strengthen audit of design, implement of the concept of cost-effectiveness, and balance keep the balance between product design and product cost; during the construction phase, Yatai should strictly implement the bidding, arrange a suitable construction sequence, attach importance on clarification tests of construction drawings; during the completed phase, Yatai must focus on cost management to create multiple audit system using strict punishment system, and site administrators must review carefully the all changes and executive condition.