Study On Life Cycle Cost For The Costs Management And Control Of Residential Project

With the increasing competition in the real estate market,more and more real estate developers purchase land at a high price,and they have a blind pursuit of shortening the construction period and lowing the development costs,which lead to ignore quality of project and the needs of the users,causing an imbalance of supply and demend.That's why our real estate market develop abnormally.From the perspective of people's livelihood,throughout the year,frequent natural disasters must have strong financial and material support.At the same time,the huge demand of the job means that the current economic growth is the inevitable direction.The real estate industry play an important role in promoting the growth of economic.while controling the housing prices,wo should guide actively the development of the real estate industry to grow smoothly and healthily which have became the current focus.Every company of real estate should rethink its strategic choices and thinking philosophy. This requires a more scientific and unified management to control systematicly the cost of construction projects, that is the whole life cycle cost management. We achieve cost minimization and value maximization on the based of ensuring the progress and quality of project. Life cycle cost management take into account the interests of builders and users, and considering the cost of capital for real estate projects, environmental and social costs. From the perspective of sustainable development, we promote the implementation of Green Housing, in order to achieve the unity of man and nature.The application of life cycle is very extensive, especially in the politics, economy, environment, technology, society and so on. The basic meaning can be understood as'from cradle to grave'. The whole process is the most popular form of construction projects to improve efficiency of investment at the present and in the future international construction market. This paper elaborate the way to control the cost of real estate by the life cycle cost management from the following aspects.Firstly, we review the conditions of the current real eastate market, and point out the significance of the implementation of life cycle cost management. Secondly, the basic principle of the life cycle theory is discussed in every detail and particular. In order to realize the resource optimizingly and the green philosophy, we ogernized the life cycle theory and the concept of sustainable development together. The definition of the project cost is also introduced briefly. In the paper, the cost of project includes not only the development and construction cost, also cover the socal cost and environment cost. Subsequently, the paper give information of Green Housing which is the derivated from life cycle theory. In the design and construction stag, we begin to considerating the controlling and management of the cost, In the use and maintenance phase, we should focus on the influence to the environment and the users. Thereby we can reduce the social cost and the environmental cost to achieve maximum value comparing with the lowest cost. Finally, we introduce the procedures of the cost management from almost all the stages of whole life cycle, and the methods of it.