Research On Cost Management Of The Development Project In VVV Real Estate Company

The current world economy has entered the post-crisis era because of the impact of "subprime crisis". The global economy did not show a significant recovery, remaining in doldrums and slower growth is still the main theme. Domestic economy has intensive pressure from a variety of problems overlapped by stabilization and recovery, facing the real economy going down and economic restructuring. The real estate industry is facing unprecedented policy control, combined with increasing cost of project development, declining in profit margins. Establishing cost management mode suitable for its operational characteristics is the way to form enterprising sustainable core competitiveness and gain a successful market share.Analyzing the status and the development and changes of the cost management of the real estate industry, the deficiencies of cost management of the VVV real estate company in project development are:lack of overall vision and strategic systems thinking with extensive management; the cost management system was incomplete and incompatible with its inner operation environment and its cost related components; scattered cost information, inadequate reflection on dynamic benefit and failure in cost management, which result in unable to achieve the desired goal. Facing these shortages, combined with the real estate enterprise cost management features, this paper proposed a cost management system for the VVV real estate company, and elaborated its operational mechanism and cost management, through effective strategies such as organization of construction, systems management and IT development to ensure the realization of the targets.This study outreached researches both home and abroad, adopting scientific theories and practical management approaches in combination with accounting systematic principle, system theory and information theory. The project analyzed the cost management using one project of the VVV real estate company, focusing on real world practice and application. Comparing the estimated project goal and the actual operating condition, the research found the factors that have significant impact on cost management performance, in addition to the cost itself, including finance balance within the development cycle, revenue realization, asset management, operating expenses, and etc. And the synergy between the factors in management is significant. Therefore, during system design process, a series of optimization were based on comprehensive consideration in respect of organizational management, system security and information platform build up, which delivered applicable solutions from asystematic perspective. Meanwhile, in order to dynamically reflect project development effectiveness and give objective evaluation to cost management performance, the full cost management report is design with rationality to establish project development cost management system informs of full participation, whole process management, full cost elements collaboration and information intensity. Because of the involvement of multi-disciplinary knowledge such as finance management, project development, project cost, and information management, and the ever-changing management theories, the system still need to be improved and further developed.