Research On Cost Management Of Commercial Real Estate Project Of A Company

At present, Chinese real estate industry is facing the most strictly policy changes inrecent years. The environment in the market isn’t optimistic.Due to more fierce competitionand the adverse changes in the market environme, the requirement to the enterprisemanagement ability is higher and higher.For the development of real estate enterprises, theymust constantly enhance their core competition ablilties. One of effective abilities is toimprove the cost management ability for beating other rivals in the fierce competition.On how to improve the cost management ability, the essay first objectively analyzes themacroeconomic environment and government policy, and points out the cost controlimportance of the real estate. Secondly, on the analysis of the dynamic project researchdomestically and oversea, it puts forward the purpose and significance of this study. And thenit presents the development process of the project cost management theory. Especially itanalyzes the modern project cost management theory including the whole project process ofcost management theory, the whole life cycle of the cost management theory, and the wholeproject cost management theory.Meanwhile, it also introduces the basic characteristics, costcomposition and management content of the project cost management in the current realestate industry. In the instruction of the modern project cost management, the paper illustratesproject cost management situation and original management system of commercial real estatecompanies. In addition, it thoroughly analyzes the problems the companies would face andstrategies they would conduct from the aspect of the project cost management theroy andstrategies change.It also finds out the deficiencies and reasons in the project cost management. Tocombine with the relevant theories of modern cost management, the paper studies the case ofcommercial real estate companies establishing the project cost management on the basis ofthe contract planning and dynamic cost control system.It reveals each control link influence tothe project cost and establishes the basic method and the process of real-time control system.The paper also objectively puts forward the problems that should be paid attention to,systematically concludes the significance of project cost control mode for the real estateenterprises’ development and enlightens for those entering the small profit era. Finally, thearticle hopes to provide reference samples for other similar sized real estate companies which are in the stage of the transformation and improvement of project cost management.