Study On The Applications Of Cost Target In Housing Development Enterprise

The housing market conditions are analyzed. The importance of the housing development companies' cost control is pointed out. It is shown that there are a lot of disadvantages in the traditional cost control methods. The housing development companies should establish an effective cost control system to manage the cost so as to accelerate the development paces of the company.All kinds of costs in the house development have been examined. A new cost control system based on the Cost Target Theory (CTT), which aims at the "Customer Satisfaction (CS)", is brought forward after carefully studying up on the CTT.The fourth chapter of this thesis is a key part. It deals with the problems of how to bring the CTT into effect in the housing development company. Firstly, a house evaluation system based on the CS is set up. With the utilization of AHP, the indexes are calculated out. The customers" latency demands can be translated into design reference with the help of this evaluation system. The target cost can be made out with the utilization of Value Engineering (VE). With the cost control circle "enactment→decompose→manage→2nd enactment→......" in design stage, one can depress the costgreatly. Some advices about the system are discussed in the thesis too.The customers are exclusive from the price systems in the old method of making a price, "Cost + Profit". The housing development company should carry out a new-way, "Cost =Price - Profit", which is based on the CTT. The price accepted by the customers should be considered as a determinative factor, which should be used to work out the cost. So the cost can be well controlled.An example is discussed in this thesis to shown the excellent effect of CTT used in the housing development company.Some conclusions are made in the last chapter of the thesis. On the other hand, some problems, which should be further studied, are pointed out.