This paper takes the cost control and the direction of existent estate undertaking as the object in research. and analyzes and surveies relevant issues. By analysing the cost construction of existent estate building. this paper identifies jobs in cost control and direction of existent estate building at present. Along with the fast development of China’s economic system. the existent estate industry has achieved fantastic successes. drawing economic development significantly. and lending a batch to China’s economic development.
Today. existent estate building assumes more undertakings. In 2008. 3. 000 billion RMB enters existent estate building. The cost control and regular direction of existent estate building turns into the focal point. Once the building cost is out of control. it will take to a great waste and will convey approximately more force per unit areas for belongings direction in subsequently. A nice cost control is meaningful for the whole existent estate building undertaking. To recognize better cost control and direction of existent estate building is of import for today’s harmonious society.
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The cost of existent estate building is composed of four parts. The first portion is the land cost. accounting for 30 % of the entire cost. It chiefly refers to be for edifice land. greening land. equipped installation land. and belongings direction land. The 2nd portion is the building installing cost. as the chief organic structure of existent estate building cost. accounting for 20 % -50 % of the entire cost. Among the building installing cost. stuffs cost the most. accounting for 60 % of building installing cost. The 3rd portion is the cost for equipments and machines. accounting for 1 % -3 % of the entire cost.
This portion is chiefly for run intoing the demands of operations. direction. and care. The 4th portion is other cost. accounting for more than 15 % of the entire cost. It is hard to command this portion. It chiefly includes the cost for probe and design. the cost for undertaking supervising. and the cost for substructure. In particular. the direction cost normally surpasses the budget. which is the largest portion that is difficult to command in existent estate building. The direction cost is merely accounting for 1 % of the entire cost. But the absolute sum is big. It is easy for the building company bing more in direction.
At present. serious jobs exist in the cost control and direction of existent estate building. For illustration. for some existent estate building. the design is earlier than the survey of feasibleness. which makes the ulterior bend into useless. In command. some building companies perform illicitly. which makes the command fail to command undertaking cost good. The popularisation of assigned subcontracts and assorted subcontracts serve as possible menaces for undertaking quality. The hold for project payment. particularly for workers’ rewards. is serious. Some undertakings can non pull off the alterations of designs. Construction companies fail to follow the designs wholly. which may take to larger costs for building. Some building companies emphasize on the control of quality and period but fail to command the cost. All these activities make the cost of existent estate building out of control in China. which is harmful for the sustainable and healthy development of existent estate industry.
* Fail to Estimate the Project Exactly:
Investing appraisal is performed at the really get downing. viz. in the survey of feasibleness. Present digest of survey of feasibleness is deficiency of inside informations. No effectual points to command the figure of undertaking. The appraisal has a lower clearcutness. Besides. the survey of feasibleness has no necessary probe. Some possible geological catastrophes can non be identified efficaciously. which leads to the rise of costs. Although some companies make “details for implement” . the consequence is hapless. In order to set up the undertaking. some companies may cut down the figure of undertaking and lessening costs.
* The Compilation of Project Budget Has Poor Reliability:
At the phase of design. the probe is far from sufficient. Some cardinal stuffs for design are inexact. As a consequence. the design may be irrational and will be changed significantly in building. which causes the hapless dependability of budget.
* Working Drawing Budget is Unpractical:
At the working drawing design phase. roll up the undertaking budget harmonizing to the design. The working drawing budget is to cipher the cost of design. The reason of working pulling budget is about how to form the building and how to make the design demands by what sorts of methods. plus how to set up the building period. and how to pull off workers and machines under different seasons. harmonizing to scientific designs. All these undertakings are supposed to be arranged by building companies. For design companies. to roll up the budget is unpractical.
* Do non Follow Basic Construction Procedures and Can non Control Costs:
For some undertakings. clip is pressing. Therefore. the design is possibly imperfect. And the building does non follow the basic processs purely. Sometimes. the survey of feasibleness turns into useless documents. As a consequence. the appraisal and the budget can non command the undertaking cost efficaciously.
* Contract is non Managed Well. Especially for Subcontracts and External Workers:
Some existent estate developers neglect to pull off contracts. They do non follow the footings written in contracts purely. Besides. some developers can non cipher the cost of undertaking measures right. They are incapable of pull offing external workers efficaciously.
* Irregular Management and Many Changes for Undertaking:
Real estate developers can non plan decently and have to alter the direction methods. Or. the executing is weak. They can alter the design as will. Then. the graduated table of undertaking is increasing and the cost is lifting.
* The Financing Structure is Unreasonable and Depends on One Financing Channel excessively Much. Which Contributes to the Rise Of Costss:
At present. the financess for existent estate building in China are chiefly from domestic loans. foreign financess. equanimous by building companies. and other beginnings. Although funding ways are few and some are immature. bounds are more. Sometimes. financess can non get in clip. In order to see the procedure of undertaking. the building companies have to use loans from Bankss. Therefore. a big proportion of building financess are from Bankss as loans. And the recognition period is long and can non fit with investing return. The features of existent estate industry determine the lagged-behind investing return. One funding channel increases hazards and costs. which leads to the accretion of loan balance in Bankss. increasing building costs and force per unit areas for subsequently in operation.
* Cost Management is Unscientific. Miss the Idea of Cost Control. System is Imperfect. Management Cost Is High:
By scrutinizing tonss of undertakings. we find that direction is one of factors that cause overspending. Main points that cause overspending include direction fees. compensation fees for taking. and supervising. Main grounds include: Miss a perfect cost control system and can non pull off and command the cost consistently. which makes it difficult to place the out-of-control of cost in clip. Miss the thought of cost control and the restraint mechanism. Undertaking directors are ever concentrating on quality and building period. but non be control. The absence of system makes the outgo more irregular. No incorporate criterions for direction fee are effectual. Workers are more than necessary in building companies.
