Cost Management Analysis&Improvement Strategy Of One Real Estate Engineering Project

Under the latest macroeconomic policy which emphasizes "Supply-side Reform"as mainstream,and implement all aspects of work evolving around "stabilizing growth,enhancing reform,adjusting structure,and benefiting civil citizen livelihood,preventing risk",at the same time deeply promote "capacity reduction,de-stocking,deleveraging,cost reduction and improving underdeveloped areas" to achieve stable and healthy economic development,social harmony,and stability,China real estate industry are experiencing most strict regulation policy.With the more intensive competition ongoing,real estate investor companies are facing challenges and urges to improve cost management in innovative ways and pay more attention to its standardization,normalization and intensification to ensure its anticipated benefits.The case study in this paper evolves around the cost management problems that could occur in project construction implementation,then further analyzes the status quo in engineering construction.Guided by "Whole process cost management"concept,explore solutions and generate strategies,so as to provide evidence to facilitate effective cost management in future projects.Through the study of PMBOK cost management,lifecycle cost management,whole process cost management,and comprehensive cost management system,and with literature as the theoretical basis support,this paper discusses the cost management methods and applicability of each system.This paper collects the chaos happened in cost management in first phase of Xinglong project of a certain land via primary interview,and a large number of basic data needed via survey.The root cause of such chaos is further confirmed after analyzing the research results throughout each construction stage.Based on the theory of "whole process cost management",while aiming at the cost management problems existing in the feasibility study stage,design stage,bidding and procurement stage,project implementation stage and project completion stage,the corresponding improvement strategies are formulated to provide the correct basis for the implementation of the second phase project.The comparative analysis of the cost management data of the second phase project shows that the sales revenue of the second phase project has increased by nearly 24.32%compared with that of the first phase.Although the land cost has increased a bit,the overall unilateral cost of the project has decreased by about 12.40%.The operating expenses and management expenses have also been effectively controlled.The final net profit margin of the sales is about 14.41%,which is about 4.51%higher than that of the first phase project The cost management effect of the whole project is outstanding.