Research On The Whole Process Cost Management Of The Real Estate Enterprise

With the increasingly mature of the development of the domestic real estate (RE)market, together with great pressure coming from the national macroeconomicregulation and control policy, the RE industry becomes more competitive. Anexcellent cost control (CC) for RE development project is the basic guarantee forsurvival and development of a RE enterprise. Under the tight monetary policy and thehouse purchase quota policy, and the condition of the increasingly fierce competitionin the market, if a good economic benefit and profit maximization are pursued, REenterprises need to improve their management including cost management (CM) andCC during project development process. As a result, the core competitiveness of theRE enterprises can be enhanced.According to the workflow (in order of project investment decision-making stage,planning and design stage, construction stage, marketing stage, and complete consignstage) of a RE development project, the method and measure for CM and CC aresuggested in this paper. The CC program and CM method in every stage of projectdevelopment are mainly studied. The idea of building up a whole process CC in CMof the RE project development is strongly proposed. The paper takes the EvergrandeReal Estate Group for example. The experience and shortage during project CM aresummarized, and corresponding improvement measures are proposed throughanalyzing the current situation of CM in every stage of project development of thisenterprise.The paper closely combines the present situations of the CM of the current REenterprises. The actual operating characteristics in the CM of the RE enterprises arehighlighted. The study suggests that the goal cost and overall evaluation mechanismshould be established on the basis of gradually optimizing CM system and process ofevery stage of the project development. The whole process CM can fully beimplemented through strengthening the management system and promoting themaximum management effectiveness of organizations. Moreover, this articleinvestigated the whole process CM during the RE project development, providing areference for further improving CM system and increasing its level.