Research On The Development Cost Control Of YC Project Of B Real Estate Company Based On Value Engineering Method

In the past,the management mode of real estate development is extensive and belongs to high interest industries.However,with the development of the times,this situation has changed as the average profit of the real estate industry is less than 10%.The transformation of real estate has gradually changed to the direction of scale,branding and standardization since 2017.The concentration of the real estate industry has been increasing year by year.30% of the real estate enterprises will occupy 70% of the market in the future.It is a great possibility that the top few real estate enterprises exceeds trillions sales volume.For real estate development enterprises,the top urgent task is to improve the level of project management.Lower cost is the most direct and effective way to increase the profit and enhance competitiveness.B Real estate is the top ten real estate enterprises which faces a huge challenge-how to control cost each project well and ensure investment income to be greater or equal to 10% ?This assay is based on the analysis of the relevant theory of real estate cost control,taking the YC real estate project of Company B as the object.The main problems of YC project are as follows: lacking of the optimal demonstration of the early product scheme;Overspending cost of pile foundation project and temporary model house during the implementation process;Not considering fully in the implementation process whether it is the maximal matched between realized function and cost;failing to deeply excavate in project profit margin.Then the value engineering method is used to the corresponding improvement measures for the problems which YC project appear in the earlier stage and during project implementation.The basic steps followed by the value engineering method are: confirming the research object of VE,analyzing the function,cost and evaluating function of the research object,improving the scheme creation,scheme evaluation and implementation.Through the application of value engineering method to help to control cost of YC project,the profit margin of YC project of Company B is raised from 9.49% to 10.25%,which ensures the profit margin of the enterprise and maintains the market competitiveness.YC project selects a better planning scheme that the volume ratio is from 1.4 to 1.49 which enhances the value of the project in initial cost control during the first round project planning.During the project implementation stage,the value engineering method is applied to grasp the following key points to control the cost and enhance the value: 1)eliminating the superfluous functions of the pile foundation project;2)matching the functions and costs of the exterior wall project and the public decoration project;3)increasing the functions of the door projectsto reduce the cost slightly;4)adopting new technology to upgrade the function to cut down cost;5)displaying the temporary model room and reducing function slightly and substantially.The advantage of the value engineering is that it can be applied throughout the whole lift circle.It plays a great role during the scheme design stage.In the implementation of the project,the fully investigation of the maximum matching between the function and cost is needed.However,value engineering has its own insufficient.The function evaluation can not be accurately quantified and the accuracy of evaluation needs to be demonstrated and improved.Even so,the value engineering method is still a scientific theoretical method which is worth to promote.The application of the value engineering method in cost control in this paper is expected to inspire the cost and related person.In the future practice,the value engineering method can be applied more and popularized successfully.