Research Of Application About Value Engineering In Project Cost Control

Due to big-scaled investment,long construction period numerous uncertainties and other, factors, cost control in real estate projects is rather difficult particularly for super-five-star hotel projects as land price remains high and macro economy shrinks.Issues including selection of hotel manager, construction characters, construction cost,operation cost, etc. should be taken into consideration at the early phase of the project.Most current cost control at home and abroad focus on production process.However for real estate project, data shows that design of which the fee accounts for 1%of the total life-cycle construction fee influences more than 75% of the project cost.This shows design’s key role in project cost control.From the perspective of product value, value engineering aims at improving design plan to raise the product quality and reduce the cost and thus provides condition for management optimization. Based upon value engineering theory, this dissertation proposed value engineering to be involved at the early phase of the project,i.e. design. By evaluating hotel project’s market positioning, structural selection,optimization of air-conditioning plan, etc., it discussed how to optimize design plan,appliance and procedure so as to make cost structure more reasonable and provide theoretical base and method system for cost control policy.