Discussion On The Importance Of The Cost Control In The Design Phase In Real Estate Enterprises

This paper analyzes the situation and defects of cost control management in real estate investment of current years, focalizing on the whole course cost control in real estate investment by studying overseas management modes in related aspects. This research discusses the various stages of project management theories, effective cost control methods in different stages of cost control management like initial decision-making, design and implementation. It points out the importance of cost control in design process, and analyses in detail about theories and methods using in stages like decision-making, design and implementation. There is an introduction about application of Limited Design and Value Engineering of cost control in design stage of real estate investment. It focuses on analysis and research of stakeholders related to cost control management in developed area, including their roles in cost control, cost evaluation and features of control mode. On the basis of this investigation, it proposes a method about how can some property owners strengthen the co-ordination between design and cost control to make whole course cost control effectively. This paper makes comprehensive analysis of techniques related to the entire process of project cost management, including statistics, economics and mathematical methods; qualitative analysis is employed by comparison, induction, combination of theory and practice. Furthermore, it uses quantitative analysis methods like Value Engineering to demonstrate on specific issues. It builds up a basic model of engineering project and whole course cost control management by accounting principles of activity-based cost and principles of activity-based project management. Eventually it establishes an overall solution on whole course cost control of engineering projects. This paper makes a detailed analysis and research of a project in Nanning (Guangxi Province) as a case, discussing about how the Limited Design in design stages influences cost control of the project.