Sanya L Company R&D Design Stagecost Control Countermeasure Research

Cost control is key process in real estate development and important requirement to guarantee economic benefits of projects developed. Design fees usually accounts for1.5%to3%of total development costs for construction projects. However, it brings75%influence on costs of construction projects. It’s true that foresight and accuracy of design, guide and support degree of design to succeeded construction will directly impact following construction period, resources allocation, quality of product and final benefits. Therefore, cost control in design period has crucial significance to benefits of whole project development. At present, in real estate development process, cost control in design period works on aspects of workflow restraining and target costs limiting. In practical application, usually ignores relationship between costs and product effect, product quality and sales prices. To a great extent, just controls cost for control and deviates the aim of cost control.This article states workflow of real estate development, significance of cost control and great role of design in real estate development, and describes significance of cost control in design period and methods and ways usually taken in real estate industry. Then through analysis of cost control conditions happened in design period in Sanya LN real estate company, analyzes effects of pure systematic control methods often taken nowadays such as introducing value engineering, quota design, target cost constraint etc. and finds deficiencies. Finally, takes one project to be developed as example, and gives concrete methods and measures of cost control in design period so as to make expected control effect true.