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Study on Cost Management Methods and Application for Real Estate Project

Author: LiDongHai
Tutor: JiangJingZuo
School: East China University of Science and Technology
Course: Business Administration
Keywords: overall construction cost management housing complex quota design
CLC: F293.33
Type: Master's thesis
Year: 2012
Downloads: 48
Quote: 0
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Abstract


Real estate industry has evolved into one of the most important pillar industries in our country after development of the past several decades, especially the recent 10 years. Sound development of real estate industry, which drives many other industries, is closely bound up with the people’s lives. The profit mode of real estate enterprises will encounter fundamental changes and challenges, which indicates that the old mode of housing price hikes dependent on the rise of surrounding land prices will come to an end. It is essential for real estate enterprises to control costs of real estate projects by forecasting market trends timely and accurately, speeding up project development, updating business development modes, strengthening overall cost management, lowering enterprises’ development cost to the maximum extent and transforming from extensive development mode into delicacy development mode, which, therefore, maximizes enterprises’ profit and creates a win-win situation for enterprises and the society. Centering on overall construction cost management of real estate industry, this paper, by introducing relevant theories and methods analyzes and makes investigation into the management methods for real estate development from the main characteristics of scheme, design, purchasing by invitation to bid, completion settlement as well as the key points of resulted project cost, with an attempt to provide rules for real estate enterprises to follow during construction cost management. This paper aims to help real estate enterprises realize industrial standardization and normalization of project development. Taking Sixing Real Estate Project as an example, Chapter 5 of this paper details the application of quota design and value engineering in this project and makes further analysis and investigation into compassion of management and implementation of construction cost management elements in various phases, and demonstrates the importance and significance of overall construction cost management during the development process. The project achieves the cost control goal set during decision-making phase and obtains satisfactory economic profits.

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CLC: > Economic > Economic planning and management > Urban and municipal economy > Urban Economics and Management > The real estate economy > Real Estate Management
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