Cost Control Of The A Project Assembly Building Of China Merchants Real Estate

With the acceleration of urbanization,the drawbacks of the traditional process model of building construction in China have become more acute,including the massive waste of building materials,the huge water consumption,the serious noise pollution of the construction site,the problem of crack and leakage,etc.,which results in the difficult legal rights protection for owners and the rocketing labor costs.Therefore,to solve all these problems,it is imperative to develop prefabricated building and intensive and fine building construction.As the industry leader,China Merchants Property Co.,Ltd.actively responds to the national policy of developing prefabricated building,but hope coexist with despair.Taking the A project as an example,the first phase of the project is subject to the extensive cost control mechanism of the traditional building model,the lack of technical management capacity,which causes that the project development cost is much far than the cost target and the project revenue drops significantly.So owing to the company's internal project cost evaluation pressure,other project managers are unwilling to promote prefabricated building.Therefore,the cost reduction of prefabricated building has become an urgent problem that the company must solve.The paper,on the basis of the first phase of Project A,illustrates the outstanding problems of the traditional cost management and control methods in the process of project development and construction.The 5WHY analysis method is used to analyze the causes leading to the cost out of control.And the classification analysis clearly indicates that the lack of design and construction standardization guideline,the outdated project management mode,the unmatched project management structure and assessment indicators,etc.are the root causes of problems.Through the interviews between the company's senior management and grassroots employees,combined with the literature research method,the cost control strategy for prefabricated building projects are made in project development and construction process.The suggestions of the cost control strategy are proposed based on the key points of the cost control: the enterprise should establish the prefabricated standardization system,implement project information management,reform project structure,and formulate the implementation plan of the corresponding cost control measures.Afterwards,the research results were applied to the second phase of the pilot project.Through the use of the earned value research method and the comparative research method,the phased effects of the cost control of the second phase of A Project were checked and compared.After demonstrating the implementation of the cost control strategy in the second phase of the project,the project development cycle and financial evaluation indicators have been greatly improved.With demonstrating the effectiveness of the cost control strategy,affirming the effectiveness and experience,and pointing out the direction of the next step of improvement of the project,the solution for other enterprises engaged in the fabricated buildings are provided.