Application Of Target Cost Management In Binhai New World Real Estate Project

Our country is in the stage of construction,the construction industry is developing rapidly,like a raging fire,throughout the various regions of the country.In 2016,the total output value of the national construction industry reached 16 trillion and 700 billion yuan,an increase of 9.6% over 2015.The construction industry plays an important role in the economic development of our country.Since the reform and opening up,China’s real estate industry has been developing rapidly.Cost management,as the most important part of real estate enterprises,plays an important role in project construction.In commercial real estate development projects,the method of comprehensive use of target cost management is the most effective method for enterprises to reduce cost,improve efficiency and enhance competitiveness.However,there are still a lot of problems in the actual implementation process,especially the commercial real estate development is a comprehensive project.The risk,duration,quality,sales strategy,design requirements and changes of the project will affect the cost,and the cost management will increase the cost in vain.Therefore,this paper makes deep thinking on the basic theory of target cost management and the application practice in commercial real estate development projects.The aim is to use the target cost management in the specific commercial real estate development projects,to find the cost management problems in the process of the project implementation,and to put forward some pertinent and feasible suggestions and suggestions to improve the application of target cost management in the commercial real estate development projects.This paper takes the project of riverside Xintiandi real estate as theresearch object,first studies the content and influence factors of the target cost management of the project,and points out the problems in the implementation of the cost management,and discusses the significance of the implementation of the target cost management and the feasibility of the target cost management of the project.According to the theory of cost management and the actual real estate market in our country,the specific application of the target cost method in the real estate project of Binhe Xintiandi is elaborated,and it is refined to each link of the target cost prediction,formulation,decomposition,execution and control,assessment and the target cost management of the specific stage,and it also needs to be changed in the process of implementation.Some suggestions were put forward.Target cost management advance the stage of cost management to the stage of design and development.Through the process of cost prediction,formulation,execution and assessment,effective cost management and control are carried out in the process of design,construction and marketing for the project or enterprise to reduce the cost of the enterprise.In this way,the cost management is not only started from the source,but also the cost dynamic control of the project or enterprise is carried out in the process of implementation.The whole process and the omni-directional cost management have been ensured,and a comprehensive system of cost management system is formed.In the process of real estate project construction,using the method of target cost management can greatly improve the level of cost management,mobilize the enthusiasm of the project or enterprise employees to reduce the cost.It is of great practical significance to the goal of maximizing the profit of the project or enterprise.