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As a critical part of real estate management, Target Cost Management of real estate project is an important management measure, through which, real estate enterprises could control project cost in an acceptable range, make reasonable profits as expected, realize sustainable development. In the course of real estate project implementation, cost management will run through the whole process of project development.Since real estate has a long development cycle, needs multiple departments to cooperate, from the obtain of the land to the sale, internal coordinate departments include development, design, engineering, sale, property, finance and so on; external contact sectors include land and resources, planning, design, supervision, construction quality supervision, testing, surveying and mapping, revenue and so on, each step has its different cost budget and characteristic, each expense of these steps should be included into the cost accounting, an effective system of cost management is needed to make it. So how to make the system of cost management and how to choose the appropriate method of cost management have drawn managers’the increasing attention in real estate.This article discusses Target Cost Management of real estate project from the following aspects: first of all, the writer introduce the common methods of cost management of real estate project at present, and analyze the management theory, and then elaborate it in detail.First, how to compile real estate target cost, summarize management principles and processes of real estate target cost, explain the relative steps in compiling real estate target cost combined with engineering examples. Second, summarize and analyze the pattern and framework of real estate target cost management. Third, analyze the documents and systems which will support target cost dynamic management. Fourth, illustrate how the project realize the target cost dynamic management in each development step combined with examples, analyze the process of dynamic management carried out from organizational system, workflow and main steps of management, propose cost lifecycle management approach based on contract planning. Illustrate how to achieve the cost goals set by the managers, implement the companies’each internal functioning departments’work of cost management under the cost center’(cost committee) coordination through contract planning, cost tracking, target cost adjustment, periodic cost analysis during the process of target cost dynamic management of real estate.
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