Carrying Out Reforms For The Engineering Cost Management Of Real Estate’s Project

The real estate development industry plays an important role and has a significant position in the contribution of various regions’ GDP in current socio-economic activities of China. The profit margin of the industry is showing a trend of gradually reducing as a whole, while the gap of the management ability and level between the domestic benchmarking enterprises and quite a number of local enterprises has become bigger and bigger at the same time. Pursuers are most likely to start and achieve successes by carrying out reforms for the engineering cost management of real estate’s project. The content of this paper is to analyze and cite the issue of some representative enterprises’ engineering cost management and its causes, as well as providing viable solutions.Based on a large amount of industry literature materials, including a full business survey of Hanjian Group, this paper comes to the conclusion:The enterprises which have poor management of engineering cost during the development process of real estate projects are likely to suffer the following several issues:The functional department in the transverse design of the organizational structure of enterprises is not perfect, and the functional boundary of the longitudinal design’s levels (groups, companies, projects) is not clear; The management concept is lack of a mature system framework, which does not "hit with targets but to hit by inclinations"; The species of the data which is related to the cost during the development process of real estate project are complex with huge amounts, as a result, the information which has tremendous business value for enterprises cannot be gained only through traditional offline manual mode, and the management tools and means are backward and antiquated. In addition to the above issues, the corresponding implementation safeguards also have a lot of problems, which are manifested in the inappropriate division of labor, and the lack of moderation of the business process design within the organization, and a targeted approach to performance appraisal has not been established.This paper attempts to introduce the management concepts and systems which are adopted by the leading enterprises in the domestic industry, so as to reconstruct enterprises’ organization structures and responsibilities, as well as arranging the business process of reengineering to provide solutions for those real estate enterprises that have stagnant business development and poor management and control ability at present in order to achieve the management-and control mode of "major departments, small projects", providing them with supports for their business development.