Research On Cost Management Of Weishiyuan Project In Rongxing Real-estate Company

Nowadays, real estate develops rapidly, and the price of premises and landrises with a violent reaction. With the price of premises rising rapidly,there are lotsof problems. The government unveil a series of adjustment measures, which leadsreal estate develop well and control over-priced and overquick increase of houses’price. Since2014, The most selling price of houses in the city and area of sellinghave descended on the trend. The houses’ storage amount in Changchun issuperior,and most of real estate enterprises take measures of lowering the price ofselling houses, but the cost of building increases continuously. With this scenario,real estate enterprises must save cost outlay,strengthen cost management andenhance competitive power in the market.Strenghtening cost management not onlyis for appreciation of item itself,but also is meaningful for the development ofenterprise.This paper mainly studies problems on “Teachers’ Court” Program and bringsforward some solutions, by using the theory of total cost management, earned valueanalysis, dynamic control theory, goal cost management, and dual stimulant theory,and combines them to actual cost management of “Teachers’ Court” Program. Themain body of “Teachers’ Court” Program is under construction, and bidding andpurchasing work is ongoing at the same time. The paper will analysise existed costmanagement problems, aimed at “Teachers’ Court” Program cost management statusquo.“Teachers’ Court” Program lacks of Cost Management personnel and electric;the salaries for drainage professional cost engineer and managers are low; the managers’ responsibilities of cost saving is not strong. On bidding and purchasingwork, there are some problems with bidding organization structure, biddingpurchasing procedure; and the rules of bidding is not complete. Company’s biddingsystem and implementation of material procurement system are not good; biddingwork of program, material purchasing work are not transparent, surround-biddingand accompanying-bidding are very serious; in the process of bidding, biddingcollusion is existed. About the budget of the program to bid, the real estate companycommissioned a cost consultation company. Engineer budget is given to the thirdparty, the cost control ability is abating, and it will be harmful for “Teachers’ Court”Program ‘cost management. During construction, managers lack of the supervisionof the implementation cost terms. Engineering progress payment does not payaccording to the contract. Economic visa site, design changes, material management,company management system, and implement of the contract terms are not well, andcompany lacks of supervision to program management system and theimplementation of the contract terms. Dynamic cost management work is not enough,and it lacks of active beforehand control of program cost target. In the aspect ofmanagement personnel supervision and evaluation, the way of evaluating is toosimple, assessment evaluation criteria is not detailed, too simple, assessmentevaluation criteria is not detailed, supervision, reward system is not clear.Company did not establish a system of assessment and evaluation system, theworking procedures, working system and jobs responsibilities can’t get effectiveenforcements.Aiming at existent problem of”Teachers’ Court’ Program cost management,weset up the whole process cost managementitem, and focesfecting cost managementsystem of invitation for bids stage, contructing stage and completed settle accounts.To set up the whole cost management system, arouse working enthusiasm of the staffand lead staff to join in cost management. To strengthen cost dynamic management,control item cost circumstance in time, find existent problems inadvance and formulate solving measures. We take three ways as daily assessmentsupervision, intensive supervision and assessment at the end of year to set upassessment supervision for the staff, and standardize behavior of administrative staff.We can improve working efficiency of cost management,reduce cost and expensesfor “Teachers’ Court” Program by above measures.We achieve the goal item costmanagement finally.