JAUE2022-031: Design Phase Cost Management in Chinese Real Estate

Abstract

The rapid development of China's economy has thus fuelled the booming real estate industry. In the real estate industry market with Chinese characteristics, real estate enterprises have a relatively substantial profit. In recent years, Chinese real estate enterprises have been subject to macro-control, resulting in a decline in profits, but Chinese real estate still maintains the inertia of past rough and tumble operations, and after the market has experienced a period of rapid development, the era of high profits for real estate enterprises is gone, and enterprises are facing enormous pressure to survive. How to control the cost of real estate to increase profits is an issue that must be considered by enterprises. The design stage determines about 70% of the total cost of the project, so using the case study of the design stage cost control of Nanjing HST project, using the target cost "reverse cost" method and "value engineering" method to limit the design, the total design stage estimate The total estimated cost of the design phase was reduced by approximately RMB 29.76 million, which increased the profit of the enterprise and provided reference and reference for the cost management of the design phase of future real estate projects