Cost Management And Control Of "Lakeview Square" Project Development

The real estate industry has been characterized as high-input, high-risk and high-yield since its booming development from1990s, and the attention developer has put on the land is far more than that on the administration of developing cost itself. Real estate industry matters to national economy and people’s living-hood, and government has realized the strong negative impact of the crazily growing housing price. The national macro-control has been strengthened, competition intensified, and more policies have been issued to standardize the operation in this industry, therefore how to reduce the operating cost of the developing and how to promote the investment benefit as much as possible is a vital topic to real estate operating corporations.Through the practice in the successful case of Shanshui Lijing Square, this essay will try to study an all-around and through-out way of cost administration of project developing. On the base of existing theory and methods of real estate cost control, this essay stresses that from project planning, construction, marketing, service, to cost accounting, a successful cost control should run through different phases of a project with the condition that project quality, progress, and safety are smoothly carried out. Besides the method of PDCA (plan-do-check-action) which has been proven as an effective controlling tool, the author also recommends that a clear system of authority and responsibility should be built up and a horizontal communication between cost administration department and finance department need to be kept.