Project Cost Management Research On The First Phase Of Laiyang Community Of Wanhai Real Estate Company

In recent years, China’s real estate industry has developed rapidly. While, it stillhas certain problem at the same time. Facing the fierce competition of real estatemarket and the more stringent regulatory conditions, all real estate companies shouldstrengthen their cost management in both the project construction and the dailymanagement in order to open source throttling.In this paper, the analysis of project cost management is based on the theory ofproject cost management and takes Wanhai Real Estate Company on as the object ofthe research. Wanhai Real Estate Company has shortcomings in the past project costmanagement. The thought of cost management is relatively weak in the wholecompany. There is no clear main body of the project cost management, and the roleof Project Management Team often get overlooked. They also lack theconsciousness of full and the whole life cycle cost management. The method in thecost management is not enough scientific. Feed-forward control and in-processcontrol are sometimes neglected during the cost control. Sometimes in pursuit ofquality or duration cost control may be ignored, leading to the cost overruns. Inaddition, the company’s project cost management system is not perfect, not form a"rights and responsibilities", peer relationship, lack of incentives and rewards andpunishment system. There is no balance among the responsibilities, rights, andinterests. Incentives and punishment system are lacked.The first phase of Laiyang Community Project is Wanhai Real Estate Company’ investment. Their target consumer group is the broad masses of low-i ncome earners. LAI YANG Compound has four buildings, and the total areais79000m2.The feasibility research has been completed, including the preliminary investment estimation and profit estimates. The current task is to develop a perfect cost management plan. According to the project cost managementcontent, it is subject to include formulating the plan of resources, cost estimate, budget,cost control and project cost accounting. In the cost estimate andbudget, the main task is to select accurate and appropriate methods. In cost control plan, we analyze the cost control main point of each stage in the whole life cycle of project. After the project cost accounting，cost analysis in necessary.After the optimization of the cost management plan, we analyze the project costmanagement scheme safeguards from three aspects. The first is to design theorganizational structure. The second is to establish responsibility cost system. Thethird is to formulated the perfect cost management information system.