Poly Garden-project Cost Control Of The Hunan Poly Real Estate Development Co., Ltd

The real estate market in China becomes more mature and the competition isincreasingly fierce through the rapid development of nearly a decade. Recently,macro–control has been strengthened and consumers are more and more rational. Inthis context, the real estate development enterprises are confronted with newopportunities and challenges. Project is the main mode of business in real estatedevelopment companies in China. Only when the projects are profitable can thecompany get profit. Therefore, the real estate development companies increasinglyconcern about project management. As an important aspect of project management,project cost control becomes the key to project profit margins when the coordinationability of the industry chain is the main competitiveness in the real estatedevelopment enterprise currently. Only controlling the project cost in a reasonablelevel can bring an expected return to the enterprise.Based on the particularity of the real estate industry, this paper takes PolyGarden-project of The Hunan Poly Real Estate Development Co.Ltd. as an exampleand analyzes the actual situation of project cost control. As a result, I find someproblems in this project cost control and try to search for the reasons. On this basis, Iapply the Total Cost Management and Target Cost Management theory to takemeasures to improve the future project cost control in this company.At the decision-making stage, it should establish project organization which hasoverlapping functions, carry out economic evaluation and make a reasonable objectivecost of project. At the design stage, it should adopt the forms of bid invitation toselect partners, limit the design cost and use the contract to restrict design changes. Atthe construction stage, it should take dynamic cost control, conduct cost varianceanalysis regularly, make cost analysis tables and cost forecasts. Of course, it isimportant to enhance on-site supervision. At the completion of settlement stage, itshould conduct multi-level audit and establish countersign system. At last, it shouldarrange the marketing cost reasonably to achieve a multiplier effect at the marketingstage.