Research On Dynamic Cost Management Of Real Estate Projects

In recent years,along with the gradual slowdown of China's economic growth and a series of restrictions on purchase and sales in our country,the competition in the real estate market has been intensified gradually,which puts higher demands on the cost management of real estate enterprises.In addition,the national macro-policy regulation as well as the increase in land costs have made the real estate market standardized increasingly,real estate operating costs increased gradually,along with overall profit declined.In fact,the cost management model based on the form of expost accounting has long been unable to meet the cost management needs of the current real estate industry.With the development of the real estate industry,dynamic cost management is gradually derived from the cost management mode throughout the project cycle.At present,even though dynamic cost management avoids many of the shortcomings of the traditional cost management model,it also needs to be improved.Therefore,it is necessary to systematically analyze the core ideas of dynamic cost management ideas together with methods,analyze its practical application in real estate projects propose corresponding countermeasures,suggestions included.The core of dynamic cost management is to develop the feasible target cost based on the preliminary research and multi-sector cooperation in the previous period,set target cost as the red line of cost management,and constraine the cost dynamically during the project development process.The article integrates domestic and foreign literature analysises,field interviews of experts,empirical research and other methods to apply the dynamic cost core theory to current real estate projects,and conduct detailed research on this specific situation.The differences between the article and other scholars' literature is that the dynamic cost and the target cost are combined to analyze the project cost in stages.In this paper,the dynamic cost subject is further subdivided by the work breakdown structure(WBS)method,so as to accurately grasp the change of the cost of the third-level subject of the main building installation project;in addition,the earned value method is combined with the actual measurement project related parameters BCWP,BCWS,ACWP to analyse the sample data of the cost,deeply explore the affecting factors and correcte them in time.In the core part,the article applies the earned value method to the A group entity case,according to the monthly assessment of dynamic cost and target cost dynamicmanagement,implement dynamic cost monitoring and rectification in the whole process of project development,so as to more effectively control the project cost.This paper combines Group A's implementation of dynamic cost management in cost control problems,timely conduct cost correction and real-time effective control of project costs,demonstrate the feasibility as well as effectiveness of dynamic cost management.Based on the establishment of a dynamic cost management system cost control model,it provides reference suggestions and improvement measures for the cost management of the real estate industry,along with further enhances the cost management and control level of the entire real estate industry.