Ding Real Estate Contract Management Internal Control System Evaluation And Improvement

With regard to the real estate companies, the business performance is depended on revenue and cost controls. And the controllability of the revenue is lower due to the restrictions of national macro-control policies and market factors, Therefore, the most important choice for companies within this industry to ensure their expected revenue, is cost control, among which the control management is a key factor.Based on the detailed analysis of the operation management and revenue management in Beijing Zhongding Real Estate Company, and by comparing the proportional relationship between the amounts of signed contracts with the income and expense in the development of the real estate, it is concluded that the contract management is in top priority among other management in our company.The main conclusions made in this article are as follows:1,Budget is not only a short-term operating target for the company, which act as a "controller" of construction projects, but also is the division of responsibilities for each department to achieve its own business objectives. The real estate development enterprises are characterized by controlling the realization of budget mostly with contracts, i.e. budget is the basis of contract, and contract is a means of budget control; And the contact control is embodied through approval processes. The person responsible for every approval process will provide opinions on contract revision under the relevant provisions of the contract, enabling prompt communication of opinions, so as to revise the contact, adjust the budget and guarantee the revenue in a timely manner. In addition, the responsibility of the financial department, which is the control department of control management, is to control the budgeted income and expense mainly on contract basis, making the "budget" to be used in practice, and ensuring the realization of operating profit.2,The defects existing in the design and establishment of internal control system for contract management are, for example, its design is based on "process", its establishment is lack of scientific and comprehensive, there is no clear responsibility, and the budget has no close relation with such system. Moreover, for the implementation, certain defects also exist, such as implementation without focused management, in-phrased management, and fully dynamic management.3,The company should establish and improve internal control system for contract management in combination with its practices by fully understanding the characteristics and risks of contract management. Starting with the establishment and improvement of the contract management system, establish relative internal control systems, which involves system management, human resource management, process management, records management, attaching great attentions to key sectors; And to establish performance evaluation mechanism for the contract management, enabling the internal control system for contract management to cover all phases and to be implemented efficiently.