Research On Cost Management Of Shenyang Sichuan-Chongqing Chamber’s Commerce Plaza Project

Project cost management is one of the important content of project management. And it plays a decisive role in the project’ available profit. Under the influence of China’s macroeconomic trends,the combined effects of factors, such as purchase order, price fluctuations, increased costs of materials and labor and intense market competition, lead to the benefit level of real estate development projects decreased significantly. At the same time, the pressure of capital and cost pressures that the project faces are growing. Under such a background, real estate development enterprises must change the idea and method of project management, gradually to the project management fine transition.Sichuan-Chongqing Chamber of Commerce Commercial Plaza Project, which is sponsored by Sichuan-Chongqing Chamber of Commerce Commercial, is developed to meet the demand of Sichuan and Chongqing people that work in Liaoning, and to promote Sichuan-Chongqing characteristics of goods. The project is expected to build a longer period, with a total investment of more than 1 billion yuan. During its development, the main sources of financing are its own funds, Advance sale and bank loans, what’s more, the bank loans are about 50% of the total investment. The expected profit of the project is about 500 million. This situation put forward higher requirements of Sichuan-Chongqing Chamber of Commerce Commercial Plaza Project.In this paper, we put forward the basic content of the cost management plan which includes project resource planning, project cost estimation, project cost budget and project cost control, based on previous research of Cost Management, Project Cost Management and Real Estate Development Project Cost Management. In addition, this paper introduces the strategic cost management thought, hope to analysis and grasp of the cost management of the project from the height of strategy.For the resource planning, due to the project outsources design, construction and sales, funds and personnel become two key factors. On the one hand, a reasonable forecast demand for capital plan and a reasonable arrangement of financing scheme can effectively avoid the cash flow tension and fracture. On the other hand, selection and construction for personnel responsible for the management of the project can effectively improve the efficiency of the project. Before the formal implementation of the project, through the segmentation and prediction of the project’s cost structure, we estimate the maximum investment of the project.Under the constraint limits, we sort out the details of the cost, cut non value-added operations, and determine the reasonable target cost. Then we decompose the target cost into cost plan and responsibility cost plan. Finally, through effective cost accounting and cost analysis, find the deviation cost timely, and take corrective measures timely to ensure the smooth implementation of the project.In order to ensure the effectiveness of project cost management programs, standard cost management process, cost management team, and cost management information system are necessary. The research aims to help Sichuan-Chongqing Chamber of Commerce Commercial Plaza Project to improve the level of cost management, and to enhance the market competitiveness.