Study On Cost Management Of Land Reserve

The Urban Land Reserve system is the reform and innovation of China’s landmanagement system, and provide a lot funding support to the construction of urbaninfrastructure. But on the whole, the yield of China’s land reserve is not high. Under theexisting land system, the key to improve the efficiency of land reserves is to control costs.The paper study on the cost control system and summarize the cost control method to toprovide theoretical support for the government controlling land reserve costs.Firstly, the paper present the overview of China’s land reserve system, including thesignificance of land banking system, the important changes, the operating mechanism, andanalyze the relationship between land banking system and urban construction. Secondly，the paper defines the land reserve cost components, analyze the influencing factors to costcontrol, and summarize land acquisition estimates process and cost control system in thecase of Wuhan. Then, the paper focuses on the problem of lack motivation to cost control,exploring main obstacles and basic condition for establishing the cost control incentiveand restraint mechanisms. Then，the paper research on incentive mechanism design,concluded that: incentive contract should adopt the cost plus fee contract, set cost goalsbased on The System to Determine the Basis, give the methods to determine sharecoefficient and punishment coefficient, which is the key parameters of incentive contract.Lastly， the article design constraint mechanism and propose measures, including:punishment mechanism for bad faith, financial supervision mechanism, cost informationdisclosure mechanism, legally binding mechanisms and social regulation mechanisms.The paper studies the cost components and cost control system of land banking,design the incentive and restrain mechanisms for the problem of lack motivation, and thecost management by the government also be promoted and perfected.