Olin Real Estate Project Cost Control Analysis And Countermeasures

This article begins with analysis of real estate in the paper business made profits in two ways, namely to raise prices or reduce product cost, increased competition with the real estate industry and real estate markets and regulation, significantly improving product prices have been very difficulties, especially in the current environment, the price increases sales have been basically impossible. So how better cost management, control costs, improve operational efficiency, through increased cost consciousness, lower costs to gain a competitive advantage for businesses, has become increasingly important. The purpose of this study, by Olin real estate project cost management is currently analyzing the problems, resources from the project planning to project cost estimates and project cost estimates to optimize and improve on the cost control process, and on measures to improve cost accounting to real estate projects on Olin analysis and cost control measures the cost of subsequent management of an important basis for guidance.1.Olin real estate projects of international apartment (1) the implementation of cost controlIn the second part of the article discusses the status of Olin project cost control and problems. Olin Real Estate International Apartments project costs mainly include land costs, geological survey and engineering design costs, the government fees, housing construction and installation cost, facilities construction costs, marketing costs, financial costs and start-up with local management and property unpredictable costs pose. By Olin on the first phase of the project cost estimate, budget and final accounts for the cost difference between the cost analysis of the phenomenon has been generated because of cost overruns, mainly in the following areas:(1) Cost estimates and budget issues. Olin Real Estate International Apartment Project (1) the cost of the project feasibility study should be multi-factor, multi-target system for the continuous analysis, evaluation and decision-making process. Practice shows that real estate is the key decision-making and design, but business decisions are based on feasibility report, which estimates the cost of real estate projects to be scientific, reasonable, and with a certain accuracy. From a practical point of view, Olin project cost estimate is mainly based on experience from the previous estimate of staff identified, field surveys and data collection do not detailed enough.(2) Project design issues. Olin project design work is outsourced to professional design department carried out, as companies not established limit of design and design drawings reviewing the system, resulting in steel, concrete and substantial design changes cost overruns.(3) Material, equipment procurement. Olin project out to ensure materials, equipment, project quality and cost saving considerations, most of the project required materials, equipment and so on with developers to purchase their own way, purchasing large range of elevators, transformers, small small light bulb, and put in a lot of human and material resources. However, in practical work, on the one hand, developers can not grasp a wide range of equipment and building materials market; the other hand, too broad procurement, management, often on the back of focus, resulting in a material, equipment procurement and effective management are relatively poor, material waste is even more serious.(4) Contract management issues. Olin Real Estate International Apartment Project (1) cost of contract management a mere formality, only played a role in a number of file management, design for articles concerning the very few.2.Olin real estate projects of international apartment (1) the problems of cost managementOlin project cost overruns are the direct cause of mistakes in the real estate project cost estimates, project design, unreasonable, materials and waste. But from the perspective of project management, project cost management Olin, there are still some problems:(1)Project cost management concept is relatively backward. Currently, Olin real estate projects of international apartment (1) the method used for cost control or biased in favor of the traditional project management thinking, which is organized under the Design Institute of drawings bidding, according to the principle of selection the lowest construction units, and in accordance with visa for clearing the scene. Traditional cost management methods have some problems, the main problem is the project management process based mainly on a passive control costs, there is no systematic and effective form of cost control.(2)The theme of the project cost management is not clear. Over the years, the traditional method of state-owned enterprises and thinking, it is generally considered the main cost management should be the company's financial department, and even that cost management is only a matter of some audits. In the course of the project cost management, financial sector, which played a significant role, but also require the company to all employees in the various departments involved, each department is the main cost management, only the full implementation of the management in order to achieve The ultimate objective of cost control.(3)Project resource planning problems. International real estate apartment project currently Olin links in the resource planning problem is not accurate resource inquiry, but also the actual situation quite different afterwards, can be found through the survey, primarily enterprises and multi-channels do not fully exercise prices caused in most cases, the subjective impression makers alone.(4)The project cost estimates and budget process problems. Olin Project (Phase I) project cost estimates and budget process, there is no distinction between cost estimates and budget, but the merger consideration, which will result in project cost control link many problems.3.Olin real estate project cost control measures and countermeasuresBy Olin Program (1) cost control analysis of the problems, the project cost control on the Olin made some improvements and countermeasures.(1)Reconstruction project cost management system framework. In the project cost management, full use of the project life cycle cost management, project cost management and project the whole process of comprehensive cost management-related ideas, re-build project cost management system, based on the real estate activity around the project cost management and full integration project cost management ideas of a modern project cost management set up an organic whole.(2)Optimization of project cost estimating and budgeting. Olin International Apartment real estate program as a three-dimensional structure of multi-cell compound, the structure of its internal development, uses a different housing, under normal circumstances, the development of adult films for different purposes, different structure of housing, construction costs can be used assessed valuation calculated Amendment Act, land cost ratio method can be used to calculate share prices, and both methods should be combined, step by step.(3)Establish the main basis for the project cost estimate. Practical work in the enterprise, can be used as the main basis for estimating project costs, including the work breakdown structure, project scope statement, resource requirements, resource unit, and project time estimation table, relevant historical information and account forms and so on. For the present situation, the focus for the project, links and content, the form through a regulation, establish a sound basis for the corresponding cost estimates, in particular, to strengthen the weak management of the use of work breakdown structure chart.(4)Standard project cost budget management and contract management. Project cost management in the real estate process, in particular should be emphasized that the cost of standard project management and contract management content. Can be divided into the following main aspects:first, to distinguish between the cost of the project cost estimates and project budgets are different; Second, scientific and rational way to determine the cost of real estate projects, budget preparation steps; Finally, the cost of the project budget management to strengthen budget results-based management.