Earned Value Application Research In Real Estate Construction Project Cost Control

As a series of national macro-control policies, the investment atmosphere of realestate development market in China is getting complex, and the relationship betweendemand and supply is changing. These factors will increase the risks duringconstruction even cause failed investment and bring a huge financial losses to theentrprises. In the current environment of real estate market in China, there is a keyfactor to decide companies survival and development; this factor is whether compniescan provide higher quality, shorter time comsumption, and lower cost for their productsin this competitive market. To achieve this goal, it is important for companies to takemore effective measures to control project costs, and reduce project costs is the focus ofthe real estate business issues.This article use management science, statistics and economics principles,correlation analysis, comparative analysis, the empirical analysis of a variety ofmethods, using a combination of qualitative and quantitative analysis, theoreticalresearch and case analysis of the combined method, it reveals the advantage of theearned value analysis in cost management. First, this article from the background andsignificance of the topic of the thesis set forth, it is the focus of various enterprises, thisis the starting point of the analysis of the research status of the theory of costmanagement and earned value method theory. By the introduction of the concept of cost,it analyzed the cost characteristics of real estate projects and elaborated various costcomponents of the project. Then it introduced the earned value method of applicationflow and earned value method, discussed and summarized the earned value method ofcost control theory. Finally, as a case study of a real estate project to a company, itanalyzed the earned value method in practical application in the real estate project costcontrol.Afther the theoretical and empirical analysis discussed above, this paper has shownthe understanding of the earned value method as an important method of cost controltheory. According to the data analysis, it is not only control the cost and schedule, butalso can make judgment to the cost and schedule of future trends. By improving earnedvalue, The earned value method can be further extended to level two; indeed, the quality is combined into and under control of the theory of earned value management. Theearned value theory is not only has theoretical significance, but also has an importantpractical value.This paper has demostrate emprirically with related cases, and thedemonstration of the earned value method applied in the real estate construction projectcost control process can be a significant on the cost of project construction.