The Cost Control Research In Design Stage Of Real Estate Project

The rapid development of real estate industry has been recently undergoing with the increasing acceleration of urbanization and improvement of people’s living conditions in China. The developer, on the other hand, suffers unprecedented pressures from the trend of uncompetitive profit but more and more furious competition in both domestic and oversea markets, especially after the government strengthens its macro-control over the real estate field which has severely had impact on the capital chain of the company. How to efficiently control the cost is one of the inevitable issues that every developer has to face while the precise administration is nowadays in demand. In accordance with the formula "Profit=Revenue-Cost", it is necessary to reduce the cost and positively take control over all kinds of expenditures apart from enhancing the income by marketing tools if the developer desires any operating margins.It requires constant attention to draw a solution how to effectively control the development cost of a building project at design phase of which has been ignored by many enterprises for very long time albeit it is incontestable that the design phase is not only the period in which the building costs stay at large but also can be controlled most virtually. This research contains following studies in order to demonstrate the aforesaid situation:1. to indicate the critical characteristics of cost control for a building project during its design through the analysis to various elements that may affect the control of construction costs upon taking tremendous number of literature references and gathering valid responses shown in the questionnaire from relevant personnel in the industry,2. to place emphasis on the study to the practicable measures of controlling the costs at design phase in light of the theories of quota design, value engineering and life-cycle management, and3. to prove the validity of the achievement of this research by using Beijing Tongzhou Wanda Plaza Project as a case study.This research conveys a full study associated with the cost control at design stage of a building project with the aim to provide theoretical basis and practical guidance for real estate companies. It is helpful for developers to improve the cost management, raise the revenue and profit margin and promote competitiveness in the market in addition to holding the significance in respects of the application and development of the cost management theory in engineering practice.