The Disquisition On The Cost Of The Real -estate Project Management

Nowadays, the real estate construction is growing and the real estate market bubble is booming because of the huge profits. From 2010, the government has put out many policies to control this trend, which increased risks in external environment of renovation. To achieve business goals despite of ups and downs of the market competition, in addition to do research and careful judgment, handle the external market environment, improving project feasibility research, planning and design, and building construction, especially developing project cost management to strengthen the core competitiveness of enterprises, are of great practical significance. As the American management guru Peter Drucker said, In the internal of an enterprise, there are only the costs.Cost is the expenses to achieve a specific purpose, which is decided by the objectives it serves. Based on in-depth understanding of the project cost management system and analysis of the status quo, this essay aims to create a dynamic real estate cost management system, to establish and improve the cost control process, and to master comprehensively key cost control methods in the various stages of the process as a means to strengthen the real estate business cost control and increase profitability, as a result enhancing the ability to withstand market risks.Cost management in real estate covers a wide range of areas and costs a long period of time and large amount of funds. In this paper, in the premise of following the objective law of construction development, fully integrated theoretical analysis of the project cost management and the summary of the advanced management experience, combined with modern business management techniques and methods, I established cost control model which has a full process management as a guide and a target cost (overall budget) management as the main line, while building up a spiral model of performance management system. The two models will help improve the real estate project cost management in advance, during the process, and ex post. Besides, they also stimulate the full realization of the target cost in the development of planning, communication, coordination, control, assessment, incentives and other features, assisting people and organizations to do their jobs involved in all phases of the cost management.The thesis highlights the practice of real estate cost management, closely combined with the current development of large-scale intensive management status and requirements. In the basis of optimizing gradually in the establishment of management systems and processes, companies should implement the responsibility appraisal system and performance evaluation system. While strengthening the systems to ensure and promote organizations management effectiveness, they also should further the implementation of cost management objectives. Analysis in costs of real estate in this article is of great theoretical and practical value for enterprises to do further refinement of cost management and improve the control capability.