Empirical Study On The Invalid Cost Of Real Estate Projects

With the continuous development of the market economy,the profit margin of real estate companies is decreasing.Once extensive management has come to an end,major real estate development enterprises have opened up a refined management road,refined management level and cost management level are closely related,cost management is more and more perfect,and invalid cost management is heavily managed in real estate enterprise project management.Adopted,but the current theoretical research on the cost of invalidation is still in the primary stage.This paper introduces the current status of invalid cost management.Taking L real estate enterprises as an example,it collects the invalid cost data of the real estate project of the enterprise.Through the ABC analysis method,the main stage of the design phase is the invalid cost,and then the invalid cost is generated.The reasons for collecting,sorting,summarizing and summarizing,forming a questionnaire,using descriptive analysis,factor analysis and binary logistic regression model to conduct in-depth research on the investigation results of the ineffective factors of the stage.Based on the empirical analysis,find out the main causes of the invalid cost in the design phase,and give corresponding suggestions.The main work and contents of this paper are as follows:1.Collecting and sorting out the invalid cost data of real estate projects of L enterprises in the past 5 years,and using ABC analysis to find out that the ineffective costs are mainly concentrated in the design stage.2.through the existing literature and the real estate designers and cost personnel and other parties to ask,collect and sort out the reasons for the invalid cost of 28 sets of design stages,and form a questionnaire.300 questionnaires were distributed and 214 valid questionnaires were obtained.The SPSS software was used to analyze the results of the effective questionnaires and the binary logistic regression model.The results showed that:(1)the ability of the design team had a greater impact on the ineffective cost of the design phase.The design team’s ability determines the quality of the design product and the progress of the project.The design team’s ability is mainly reflected in the designer’s professional ability,design management process and system,etc,and needs to increase the optimization choice of the design team.(2)The preliminary investigation of real estate projects is very important.The government planning and positioning development plans have a greater impact on the later costs.It should be accurately planned in the early stage,otherwise it will cause large-scale adjustment in the later period,resulting in huge ineffective costs,which will cause serious losses.Based on the analysis of the invalid cost of each stage of real estate project,this paper further studies the influencing factors of invalid cost in the design stage,fills in the lag of the research on the invalid cost of real estate project,supplements the empirical case of invalid cost research in the project design stage,and provides data support for further research.Specific recommendations for the control of invalid costs: sensitivity analysis should be done before design to determine the design target cost;establish strategic partners and quota bidding coexist,establish the best design team;analyze the technical and economic indicators in the design process;Performance appraisal by personnel is beneficial to reduce invalid costs.