Application Of Value Engineering In Real Estate Cost Management

With the continuous change of the central government's policy towards the real estate industry,the profit margin of the real estate industry is gradually decreasing,and the competition is becoming increasingly fierce.Cost control is of great significance for its project to achieve maximum profit.Through the study of cost management and value engineering theory,this paper applies value engineering theory to the cost management of real estate projects and solves practical problems.Firstly,this paper expounds the historical environment and market development trend of the current real estate company,which indicates that a real estate enterprise needs to strengthen cost management if it wants to maintain a stable and sustainable development.Through literature review,this paper elaborates the research status of cost control and value engineering at home and abroad.At the same time,it analyses the limitations of stage management in some current cost management methods and the similar problems in the application of value engineering in cost management.The case of this paper is mainly through the application of value engineering theory in real estate projects to solve cost-related problems.Firstly,the project is divided into four stages: project establishment,design,construction and maintenance.In each stage,a cost-related problem is selected to analyze the problem from the perspective of the whole life cycle of the project in the process of application value engineering theory.Especially in the process of functional analysis,these stages are considered comprehensively in connection with the relevant stages before and after the problem.The relevant factors of the section in order to achieve the purpose of satisfying the required functions in the life cycle at the optimum cost.Finally,the paper summarizes and prospects the application prospect of value engineering in cost management.This paper mainly uses the method of combining the theory of value engineering with the real estate project,through reading the literature about the theory of value engineering,collecting the relevant data of the actual case,fully analyzing the cost-related problems existing in the actual case.By linking theoretical knowledge with practical work,applying value engineering theory in practical cases to solve problems from the perspective of project life cycle,and further strengthening the understanding of theoretical knowledge after practical operation.This paper mainly solves the following four problems: determining the target cost at the stage of project establishment,comparing conceptual schemes at the stage of design,selecting construction units at the stage of construction,and screening maintenance schemes at the stage of maintenance.In the process of solving the problem,we need to apply value engineering theory,establish value group,determine the object of study,carry out functional analysis,calculate cost index,function index and value index,and finally select the scheme with higher value.In the process of applying the theory,some factors may be encountered in the analysis of the function combined with the whole life cycle stage of the project.In order to solve these problems better in the whole process of the project and avoid invalid costs in other stages,we should consider the problems from different perspectives.The innovation of this paper is to consider cost-related issues from the perspective of life cycle of value engineering theory.At the same time,we also have the following shortcomings in the process of application value engineering theory: how to simplify the calculation model of value engineering theory to make its method more practical;how to apply different methods to find more systematic factors affecting function;how to improve the application scope of value engineering outside cost management.