The Target Cost Management Of Hefei Zhongdu Hongjun Project

In recent two years,the country has carried out substantial regulation and control on the real estate industry,and the real estate market is under increasing pressure.In the current environment,the enterprise to cost control and profit appeal is imminent.Target cost management has become the key to "profit from management" of various real estate enterprises.The Hongjun Project of Hefei Zhongdu Company is divided into two phases for residential development.With the gradual progress of the project,many problems have been exposed in target cost management,so it is necessary to formulate an optimization plan to match the later development of the project.This paper focuses on the analysis of the cost management of the first phase of the project,aiming at refining the optimization scheme matching the target cost management of the second phase of the project and the level of Zhongdu Company.By analyzing the current situation of target cost management before and after the acquisition of the Hongjun project,this paper reveals the focus of target cost management in different stages of the first phase of the project,and lays the groundwork for subsequent author interviews and exchanges.Then,this paper uses face-to-face interview to communicate with the staff of various departments directly involved in the development of the first phase of the project.The whole interview focused on the project land feasibility study and calculation stage,project planning and scheme stage,project bidding and bidding,production and construction stage,project completion settlement stage.According to the interview results,this paper summarizes the problems existing in the target cost management of the first phase of the project,which are insufficient research on land acquisition conditions,imprecise planning plan,gradation mismatch matching customer needs,inflexible adjustment rules,unclear contract interface and low completion settlement efficiency.Based on the analysis of the preceding chapters,this paper further discusses the optimization scheme and safeguard measures of target cost management of Hongjun project.First of all,the optimization plan of target cost management for Hongjun Project is formulated,which mainly includes putting forward theoretical basis and setting objectives,clarifying principles to be followed,and specific measures in six stages,including project land acquisition calculation,reporting,adaptation,bidding,production and construction,and completion settlement.Secondly,it formulated the implementation and safeguard measures of the target cost management optimization scheme of the Hongjun project,which mainly included setting up special teams,preparing time plans,winning the support of the company’s senior management,and developing a comprehensive and overall guarantee mechanism such as "cost superman".After matching the optimization scheme with the second phase of the Red County Project,it is found that the business indicators have significantly improved compared with the original data.Finally,to the company level,through the summary explains the whole process of target cost management is very important to Zhongdu company.At the same time,the future research direction is prospected to ensure the growth of Zhongdu Company against the trend under the severe environment.Zhongdu Company has the common problems existing in traditional real estate enterprises,and also faces operating pressure in the current downtrend of the market.It is expected that the research results of this paper can help Zhongdu Company to improve the target cost management ability,reduce the ineffective cost of various projects,and improve the overall profit level of the enterprise.