The Research On Whole Process Cost Control On Jinnianlongting Real Estate Project

The Chinese real estate industry has been developing steadily after tens of years' high speed development during the reform and opening up.But the local government land auction price always stays high,influenced by the overheated investment in real estate industry over the early years.And now,how to reduce the cost of real estate projects is a key problem for the real estate investment companies.For example,there is prevailing situation of real estate oversupply in small cities.Because of high cost and low profit,a large number of local real estate investment companies are closing down,recombining and rebuilding.In order to survive and to obtain necessary profits,cost control of real estate projects becomes fundamental for companies.The Jinnianlongting real estate project,located in a small city named Jincheng in Shanxi province,is an integrated project containing residence and business.It features large investment scale,long construction period and huge construction difficulties.These features of the project determine the cost control must be a system management with whole process,whole staff and whole elements.Only in this way can the problem of real estate cost control be perfectly solved.The paper will analyze from the six phases of real estate project development,including decision making,designing,construction,completion settlement,marketing and investment attraction.The cost structures and their cause factors in each phase will be studied,so we can summarize a cost control theoretical model for each part of a real estate project: investment estimate models for investment decision making,functional analysis models for designing,level analysis models for construction,and deviation analysis models for completion settlement.These models provide solid theoretical foundation and methods for cost control in real estate projects.Meanwhile,the paper refers to other related real estate cost control theories and methods,combined with actual situation of the construction projects,to sum up the cost control problems that have occurred or may occur in real estate construction projects,so as to provide a improved plan or strategy for real estate investment and construction cost control.Finally,the paper applies the studied theories and methods into the developing Jinnianlongting real estate project,for further verification of the importance of these theories and methods in real estate projects cost control.Finally,the paper reaches a conclusion by elaborating the contents above: real estate projects cost control should be realized from whole process,whole staff and whole elements,and carries out specific research and analysis on these elements.The overall real estate projects cost control can be realized through building a standardized,normalized and informationalized platform.The presented cost control ideas and methods that penetrated into each phase of real estate projects,and the way to reduce real estate projects cost by establishing a sound real estate company withimproved cost control measures and process system,will be great help to other related projects management in cost control.