A Study On Optimizing Cost Control For Real Estate Projects Of Hunan Zhonghe Real Estate Development Co.,Ltd.

In recent years,with the economic slowdown and under the pressure of high inventories,aging population and continuing macroeconomic regulation of the state,China's real estate industry has ended over one decade's rapid growth.It is under such regulatory environment and economic trends that various Chinese enterprises have been faced with tremendous challenges.In the light of increasing fierce market competition and declining profit margin,it is essential for the property developers to effectively control the cost.Selecting Hunan Zhonghe Real Estate Development Co.,Ltd.as the study subject,this paper attempts to,combining theories with practice,provide the company with the measures for optimizing cost control,so as to facilitate its transition from extensive cost management to delicacy cost management.By analyzing the cost management organization and policies of Hunan Zhonghe Real Estate Development Co.,Ltd.and the return on investment of the Xianghe Huafu project developed by the corporation,this paper initially summarizes the existing problems in its cost control,including incomplete cost management organization,defective cost control system,ineffective control over the whole cost process,defective Cost assessment and incentive mechanism,insufficient IT involvement in management,unsound cost accounting system,an lack of administrative and technical personnel,etc.On this basis,using the idea of overall cost control and the theory of target cost management,the paper proposes the optimization strategies including(1)improving the cost management organization and optimize the assignment of duty and authority;(2)accurately compile the target costs based on the target cost theories;(3)based on the contract plan,construct the PDCA cycling control system to exercise the dynamic cost control;(4)strengthening cost control measures in each development phase,with the emphasis on optimizing cost management in the design phase using the value engineering method;and(5)summarize and improve the structure of the documents for cost management system;(6)intensify the basic work of cost control,including standardization of cost accounting and establishment of cost management information system.Finally,in order to ensure a smooth implementation of the cost control system,the proposals of improving cost assessment and incentive and strengthening talent introduction and training were put forward.By probing into the cost control practice of the sample enterprise,this paper intends to provide the enterprise with the optimization plan of practical significance for cost control,help it establish a cost management mode that suits its characteristics,improve its profitability,allowing it to constantly consolidate its strengths,and to provide reference for other real estate enterprises in cost management of development projects.