Study On Life Cycle Cost Control Of A Commercial Real Estate Project

Nowadays,with the rapid development of the commercial property industry,its market competition becomes increasingly fierce.Therefore,an effective cost control method plays an important role in improving the enterprise's economic benefit and reducing the energy consumption.At present,there is imperfect cost management system in Chinese commercial property industry,and the cost control method is extensive.What's more,the project managers only consider the construction cost,seldom pay attention to the costs in project design stage and project operation stage,which results in the unreasonable cost structure.Therefore,it is of great practical significance to study the Life Cycle Cost(LLC)control of commercial property industry,in order to improve the profitability of enterprises.Firstly,this thesis summarizes the existing literature on Chinese commercial property project development and its cost management theory.And based on the theory of life cycle cost management,this thesis summarizes the current research findings.Secondly,according to the commercial property project,we make analysis on the cost control principles,the cost management and value engineering concepts.Thirdly,this thesis analyzes the work content from the project design stage to the final operation stage of the project,in order to excavate the cost driving factors at each stage and then put forward the cost control methods at each stage.Finally,the proposed method and the whole life cycle cost control concept is applied to a certain commercial property project so as to verify the effectiveness of the method.The results show,under the whole life cycle cost control mode of the commercial property project,the schemes and costs in each stage are closely related to each other.At the design stage,the costs in construction stage and in operation stage should be considered into the design schemes.Also,the costs of each link in the construction process should be controlled by using the dynamic cost control method.In the operation stage,the costs are affected by the design problems in the early stage and the product quality during the construction stage.Finally,this thesis takes a certain commercial property project as an example to analyze its cost control management.The results indicate that the cost method based on the whole life cycle cost makes its profitability increases from 8%-10% to 19.8%.By constructing the whole life cycle cost control system of the commercial property project,this thesis expounds the practical operation steps and methods by taking a real project as an example.It provides a set of effective theoretical system and practical method for solving the extensive cost management of Chinese commercial property project.That has positive significance in promoting the refinement and rationalization of the cost management during the commercial property project.