X Real Estate And Development Projects Internal Control Diagnostic Report

Since2001, with high speed of development in China’s real estate industry, theproportion of GDP accounted by the real estate industry is increasing in our countrycontinuously. In the past years, real estate industry was developing based on theadvantages of lands in the market, while it was lack of well internal controlling ofmanagement among developers. At the same time, in order to stabilize the economydevelopment, the Government strengthened on macro-controlling, it issued a series ofpolicies since2008, such as adjusting residence supplying structure, land supplyingadjustment, residences construction for low-income people etc; on the other side, theGovernment impressed financing policies for real estate developers for controllingover-development. Facing all of these outside environments and strong competitions, realestate industry loses its advantages, real estate developers have to strengthen internalcontrolling and management, improving their own profitability and abilities to anti-riskshas become their great task.Real estate projects development is the core business of real estate developers, theauthor takes internal controlling management of the project under construction by X realestate developer which she is working for as an example. Based on internal controllingtheory and regulations, through investigating the actual business procedures and theaccidences, and with comparing analysis methods, the author makes full analysis on itsprocedures and the main problems, proposes suggestions and opinions for improvements.The analysis shows the problems, X real estate developer is facing big shortcomingsin the internal controlling management of project development, the controlling system isnot sound and is lack of regulations. The problems have already influenced its operationefficiency, wasted much cost, and blocked the realization of its strategic target.Reconstruction of its internal controlling management system becomes very important andserious.The improving suggestions are proposed by the author based on actual workingexperience and management theory learned. The suggestion will be useful and referentialfor constructing and implementing internal controlling and management system, for realestate developers or other enterprises in our country.