Thinking Of Real Estate Enterprises The Whole Process Of Cost Control

By Author: norah edward
Total Articles: 22
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The most fundamental purpose of real estate enterprises to control costs in order to achieve profit. Therefore, the entire construction process, we must always pay attention to the project cost of the whole process, all may affect the cost of the project so that the process of monitoring and management. With ten new countries to curb soaring housing prices, policy implementation, the previous housing prices, the sales trend was temporarily eased, on stage and macro-control of the real estate industry has achieved a certain degree of effectiveness. Real estate companies obviously feel that the house harder to sell. " Real estate business is capital-intensive and knowledge-intensive enterprises, pre-need to invest a lot of money to recover but only in post-sales in order to achieve a high-risk industries. We know that profit equals revenue minus cost, cost control has become a necessity to maintain the established profit decline in revenue or a constant; In addition, real estate enterprises, which is characterized by the large investment, long life cycle costs. The composition is more complex and difficult to control. Therefore, ...
... in order to achieve the objective of expected profit, the strengthening of project cost management has become a key issue to be solved in every real estate enterprise.

A profit, the whole process of cost management concepts. The most direct and credible standard to measure the competitiveness and vitality of a business is profit, real estate development is no exception. How to enhance the ability of enterprises to profit in time and space, is our eternal pursuit of the business core. The most fundamental purpose of real estate enterprises to control costs in order to achieve profit, cost management, profit can be a common management benchmarks. Profits will be the basis to become the inevitable choice. The concept of cost management throughout the real estate development process, through this method so that costs and revenues, profits, brand linkage effects, so the cost has also become a strategic part of. At this stage low-cost, low price, high-profit, strategic positioning of a larger market share or the local customer base for high-end market selection, and overall management methods must be used. This approach allowed within the cost element and cost time and quality between certain compensatory changes appear to have offs. However, the actual work, the real estate enterprise cost management still lags behind more generally the existence of the following questions.

The real estate business of cost control is the basic is still in the ex post fact control, and afterward only pay attention to post-project settlement of cost control, while ignoring the design and optimization of the construction drawings before construction is cost control focus, is a typical accounting costs. Under the conditions of market economy, competition is becoming increasingly intense, real estate development enterprises are faced with high-risk, and earnings are on the decline. The whole process of cost management is the management of the project implementation process, the cost of the project changes with the change of the design, planning targets, market conditions, the construction site throughout the construction process, we must always pay attention to the project process cost, which may affect the cost of the project to achieve the process of monitoring and management.

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