Research On The Cost Control Of Real Estate Project

Cost control is a problem mentioned in real estate industry in recent years. With the increasingly fierce competition in the real estate market, as well as, the real estate market gradually matured and standardized, the real estate industry profit margins tend to average. Real estate companies and real estate investors are paying more and more attention to the cost control on the real estate project. In order to reduce costs, improve return on investment and achieve the investment objectives, scientific and effective cost control and management of real estate companies become an inevitable problem.Taking a look at the current status of the real estate project cost management, real estate development companies pay more attention to the control of project cost. But most of the projects don't practice the cost management on whole process, and only attach importance to the project cost control in the construction phase; therefore, the effect of cost control is not ideal. In fact, the emphases of cost control are the stage of decision-making and design stage in the early stages of real estate development projects. This paper studies mainly the cost control and management of entire process in the real estate project, especially which in decision-making stage, the design stage and construction stage.Based on the forms of losing control of the cost of real estate development projects recently, this paper take an in-depth analysis of the current real estate projects, and systematically analysis the reasons of losing control, then put forward a series of operational measures for effective control of project cost. By giving examples, this paper illuminate that real estate project cost control should be run through the entire process, especially in the early stage of cost control and management. By applying the scientific decision-making process, the cost control should be in accordance with the mainly budget - estimate budget -budgetary estimate - final accounts, and avoid the emergence of the phenomenon of super-three. This paper start from the idea of cost management of the whole process of real estate exploitation, especially including the cost control and management in decision-making stage, design stage and construction stage. Systematically analysis the problems of cost management in the current real estate project by the methods of case studies and comparative study, which aimed at providing an effective model of project cost control, and strengthen the management and control of project cost by dynamic, systemic and continuous means and measures.