Research On Prophase Cost Control Of Real Estate Development Projects About Xufuhuayuan Of Baoding

With the rapid development of real estate in China, developers paid more and more attention to pre-cost control of real estate, who took reasonable and effective up-front cost control measures, would master the tool leading to win the final profits. In the early development of real estate in China, regardless of company operation mode, the final profit of project was big enough to make developers come in swarms and rapid development of real estate had been warming up, which began to cool down by the U.S. sub-prime mortgage crisis in 2008, and the real estate market shrank, competition became hotter, profit became less. The real estate agents begin to transfer their attention from the cost control in the construction phase to the pre-cost control, rationally making use of control measures to reach the final development objective of project, low-cost and effective profits. Currently there were many research on cost control, but the study time was not long, which was due to the time of China's economic reform, and the study showed regional distribution, which was less in the north than in the south, and it could be seen that the real estate development was closely related to local economic development. In recent years, there were more studies of pre-cost, showing that real estate agents paid more attention to pre-cost control, concluded the practice of empirical research, in-depth and detailed research, which providing a basis for more systematic in-depth study in the future.The city of Baoding was a medium-sized city in Hebei Province. Most real estate was extensive management, and there were few studies for the early project cost control. It took a real estate development project, Baoding gardens institutions, for example in the paper, made a more systematic research, analysis and exploration on pre-cost control on theoretical basis, providing a reference program for other peers.In this paper, the theory of prophase cost control was described in the second chapter, which belonged to one part of the theory of cost management, and from the introduction of the contents of cost management, it could be concluded that the cost control was the core of cost management, while the initial cost management was the focus of cost control. The prophase cost control is composed of the planning stage, the feasibility study stage and the planning and design phases. The meaning and application of each stage of the study focused on prophase cost control was described, study object, just as prophase cost control problem, had done a more comprehensive description, which paved the way for the following case studies. At the same time, the pre-cost-control study of the theory applied was put forward, mainly concluding value engineering theory, sensitivity analysis and extension theory. The meaning and application of their theories were expounded by the formula applied to an explanation, in order to study the following examples providing a theoretical basis. We could make a choice from a number of projects and programs through the use of value engineering in the theory of the ratio between the cost and functionality, to find the programs of their value close to one, which became a means of prophase cost control. Through the use of sensitivity analysis on the impact of the project a greater sensitivity to the economic effects of changes in factor analysis were been made, calculated, and the uncertainties sensitivity analysis of indicators of the degree of influence was estimated, in order to determine factors on the degree of influence of project investment efficiency, which provided a means for the prophase cost control. And through knowledge introduction of the matter-element theory, extension set lead to the theory of extension, using matter-element characteristic value, quantity, weight and relevance of the evaluation function to evaluate the object as well the implementation of prophase cost control as detection based.In the third chapter, the composition and its influencing factors for prophase cost control of about Xuefuhuayuan project were summarized and described in a view of the cost management. After the profile of the brief remarks about Xuefuhuayuan project, prophase cost composition and influencing factors were explained by stages. There are many factors that affected cost in the planning stage of this project, mainly concluding the project location, land cost, building size, project organization structures and so on. There are a total of 12 fees in the composition of main cost the cost of the feasibility study stage, such as land, pre-construction costs, infrastructure costs, construction and installation construction cost, development period taxes, public facilities construction costs, management costs, development of indirect costs, finance charges, marketing fees, other costs, unforeseen expenses cost and so on, which are components of the estimated cost, and this is also the cost of early cost management in the composition. In the planning and design stage, cost is composed mainly of the cost of graphic design and planning design. In the early cost management in the composition of these costs and the cost control factor is the main content and focus.In the fourth chapter, corresponding to the problems on pre-cost control of real estate development projects about Xuefuhuayuan in Baoding, effective control measures had been proposed. A reasonable choice in the planning stages of the project planning stage positioning is the key to solving the problem, and was also the main problem on which whether the cost could be able to control in the amount of investment extent. Three kinds of planning programs had been put forward by using value engineering theory, the choice of a program to quantify the value of A was a function of the best programs for the project location. In the feasibility study stage of investments, estimation was made for this project. According to estimation quota of Hebei Province, the estimation of this project was 205,910,000 yuan, which was the objective of the control. And on the basis of that sales prediction was analyzed, the sale was 313,400,000 yuan. And profitability was analyzed,the sum was 89,226,700 yuan. Sales schedule and capital recovery had been predicted, and funds could be fully recovered in the fifth year. But these are on the basis of the normal operation of the project completed, and the amount in investment may be increased due to rising material costs or labor policy, or the duration of the extension and other reasons, what happens to the profit of the project, where cost control should focus on, the sensitivity analysis of this paper had been studied according to these issues. The investment increased by 10%, and that was 10 million Yuan increased for two years respectively, or 20 million Yuan increased in the first year, and the construction cycle was due to one-year extension, so operating costs increased by 10%. According to these four factors analysis, it could be concluded that the impact of factors on the profit level from large to small was as follows: the project construction period extended for another year, operating costs increased by 10%, investment increased by 10%, as in two years increased 10 million Yuan respectively, or an increase of 20 million Yuan in the first year. It could be seen from the conclusions that construction period must be strictly controlled so as to obtain a good economic investment. How to attain further design optimization in the planning and design stages, and how to take limits in terms of cost control were mainly designed to solve the problem at this stage. The specific design had been proposed on the basis of planning, and in accordance to extension theory, an extension mathematics model was made, this option was evaluated and the program was feasible. The concrete limit cost control design was put forward, the amount of invested was decomposed to of installation design each component, and each division of cost control objectives was configured, so as to achieve the limit design.In summary, based on the real estate development project of Xuefuhuayuan in Baoding, cost control measures were proposed from project planning stage to the planning and design stage respectively, and complete system of pre-cost control had been formed, which had been sufficiently prepared for obtaining the expected benefits. And it was avoided the cost of unnecessary waste in the active control costs by order work, meanwhile the feasibility of the project under the premise was enhanced. Following, value engineering theory, sensitivity analysis and extension theory was introduced in the text, and scientific analysis and research had been studied in the theoretical basis,, so that more scientific findings and references could be obtained.In short, the introduction of advanced management concepts and methods of project cost in real estate development project has played an effective role in the successful implementation of early cost control.