Cost Control Study On Blue Sky Residential Quarter Project

The profit of real estate has been reduced drastically since Chinese government implemented restrictive policies such as "eight real estate market regulation measures" and "property-purchasing limitations" by 2011. Real estate developers, so far, have lowered the designing cost and cut the management cost for maintenance. In this case, this paper focused on qualitative and quantitative research, and literature analysis to provide insight on cost management of the real estate business to sustain its competitive advantage.The paper retrieved current studies on cost reduction viz. real estate project with brief introduction of Blue Sky Residential Development. Based on related theories of project cost control and data analysis, this research offered entire phases concerning investment decision-making, preparatory work, construction and completion, as well as marketing jobs throughout the Blue Sky project. During the investment decision-making phase, the project underwent the feasibility study with emphasis on cost forecasting, budgeting, cost control and management flow chart. The preparatory phase involves strategic cost control on designing management including cost on land purchasing and owning, demolition cost and renovation cost on three connections and one leveling, as well as designing and project bidding costs. Construction phase facilitates organizational management measures on earned value analysis, with quality control, contract management, robust design, science change of visa, and project refund. In the course of project completion and sales phase, the paper iterated strict process on project approval acceptance, completion commissioning and accounting settlement so as to save the cost of sales. Through the phases of cost accounting and cost analysis, this research checked alongside the complete circle of cost control within the process of real estate management. In reality, due to the implementing of the right cost control measures, the project finished on time and made the final savings account of RMB Y16 million.This research combined synergy of theoretical analysis and practical data collection, implored cost-saving methods such as earned value analysis and work breakdown structure, which eventually lowered the cost for real estate development. The result of this paper provides cost saving method that lowered the cost of project development, raised the standard of project control, and increased economic benefit.