Study On Cost Control Of Shopping Mall Project Of Wanhai Company

The management and control of Construction Project is the necessary work torealize the project profit. And Project Cost Management is an important content ofProject Management, especially Project Cost Control. Project Cost Control is thatmanagers have control on daily production and business operation activities,according to the cost of the plan in advance, in order to make the best of human,material and financial resources, and maximize the profit.Shopping Mall Project is the first commercial real estate project of WanhaiCompany. Its success plays an important role of Wanhai Company and its futuredevelopment. At present, the Shopping Mall Project is in the construction stage, andits cost has been overruns. At this time, to analyze and optimize the cost control is ofgreat significance.Wanhai Company has set up a project cost control hierarchy, including decision,execution and operation for Shopping Mall Project. What’s more, a cost control teamis formed in the project manager department. At the same time, the project utilizes theinformation system to form the financial statements and it also design the content ofthe cost control for construction stage. While based on the concepts and theories ofcost control, the real estate project life cycle and Shopping Mall Project’s coststructure, we find there are some problems existing in its cost control process. Forexample the process is not efficient; the method is not scientifically rigorous.So combined with the basic principles of project cost control, we proposed threeaspects to optimize Shopping Mall Project’s cost control. That is optimization of costcontrol process, optimization of cost control content and optimization of cost controlmethods. First of all, strengthen Shopping Mall Project’s cost control process. Thismeans that we have to improve and complete related policies and measures in theprocess of input-transformation-output-deviation-correcting. We also need to improvethe cost control system, and to combine feed-forward control and feedback control. So that cost deviation can be find timely and corrective actions can be taken timely.Secondly, enrich the content of the project cost control. According to the real estateproject life cycle and its specific work in different stages, we should focus on the costof investment decision,Drawing design, construction and project marketing stages, especially, theexpenses of construction and erection, the cost of material, site visa management andcontract administration. Thirdly, we should adopt the advanced and scientific costcontrol methods; on the basis of the original cost analysis table method we should addthe Cost Accumulative Curve Method, Earned Value Method and Value EngineeringMethod.This article analyses the situation of Shopping Mall Project’s cost control andsummarizes the work we should do to improve its cost control in all the stages of theentire process. We hope that Shopping Mall Project can control its cost better in thelater process of construction and leasing. We also hope that we can provide certainreference for future project development work at the same time.