Analysis And Comparison Of Procurement Management Cost Of Material Of Real Estate Development Project

In recent years,China’s economic strength reaches a new high,the development of economy leads to the rapid growth of China’s realty industry,and it plays an important role as a new growth point of economy.However,the realty industry has to undertake not only high risks but also high pressure while enjoying the high profit broght by the rapid development.Under the comprehensive effect of multiple factors such as the strengthen of government’s macroeconomic regulation and control,tax reform of replace the business tax with value-added tax,intensification of both internal and external competition,increasing pressure of capital recovery and sustained,continuing rising of land,material and labor cost,profits of real estate enterprises were diluted continuously as a result,some small/medium-sized real estate enterprises even facing the dilemma of capital chain broken.On the occasion of "life and death",exports of pressure releasing are in urgent need by the real estate enterprises.Based on the consideration of economic benefit,the cost reduction becomes choice of many real estate enterprises as a result.Building material is important part of real estate development project,accounts for about 65%of the cost of construction and installation,have a certain space for management.This paper studies variations of procurement management cost of material of real estate development project under the different supply modes of "self-supplying materials" and "contract for labor and materials",select a better supply mode which is beneficial for real estate enterprises on procurement management cost saving of material and economic benefit improving.This paper contains six chapters.The first chapter is the introduction part which introduces the background,significance,goals,contents,method,literature review at home and abroad of this paper.The second chapter is the theoretical part introduces theory of Refined Management,Activity Based Classification,Time Value of Money and Transaction Cost.Elaborate the cost composition of real estate development project,redistrict its material cost into tax exclusive price and procurement management cost(include "recessive"management cost and "explicit" management cost),explain and analyze each part separately.The third and the forth chapters are core parts of this paper.The third chapter analyses variation of the tax burden,time value of money and transaction cost of building materials which were defined as "recessive" management costs,and the purchase and storage fee,inspection and test fee,general contracting service fee of building materials which were defined as "explicit" management costs under the different supply modes of "self-supplying materials" and "contract for labor and materials".The fourth chapter takes the project J of S Real Estate Co.,Ltd.as example to make empirical analysis by calculating and analyzing the"recessive" and "explicit" management costs,studies the cost variation when the project J runs under the supply mode of "contract for labor and materials".The fifth chapter expounds the main point of procurement cost management of material combining theory of Delicacy Management and ABC classification under the different supply modes of "self-supplying materials" and "contract for labor and materials".The sixth chapter is the conclusion part.Summarizes the paper,propose the innovations and shortcomings of this paper,and finally draw the conclusion that the real estate development enterprises should choose the supply mode which is beneficial on procurement management cost saving of material and economic benefit improving according to the actual situation and emphasis of cost management.