The Magic Wand Of Cost Management

With market competition becoming more and more intense, construction enterprises have been driven out of the honey pot of high profits in the whole industry in the 90s of last century.

Technology advantage is more and more easy to be copied and surpassed. The cost and price are becoming more and more pparent. The state strengthens the macro regulation and control of the real estate development projects, so that the construction enterprises can calm down their minds: where is the profit margin in the future? How to ensure and increase the profit margin space?

Do well

Many people regard cost management in a narrow sense as "

Although the expert's view has its academic side, it also refers to some phenomena of taking cost control as a pretext while actually pursuing bad practices such as Jerry building, shoddy and so on.

In fact, in the whole construction management chain, cost management is not only a matter of construction enterprises, but also important for real estate developers and state-owned investment projects owners.

Yu Jiulong, chief economist of China Railway Construction Group Co., Ltd. believes that for construction enterprises, it is still the key to increase revenue and reduce expenditure.

To eliminate all kinds of risk sources is an important means of throttling, and making full use of "claim weapon" and incentive system is a good strategy for open source.

Compared with the owners of state-owned investment projects, some private real estate development enterprises have done the utmost in cost management.

Pearl River real estate, contemporary group and Zhejiang Guangsha and other companies use resources integration, through collective procurement equipment, optimization design and other means, save a lot of material costs, optimize the cost of the project, maximize the profits of enterprises, and are moving towards the winner to eat stage.

Therefore, some people say that whoever masters the initiative of cost control will dominate the market, and the private enterprises such as Pearl River real estate will undoubtedly do the best in this respect.

In the large-scale public projects invested by the state, cost management has become a difficult task. Because of the unique institutional problems in China, most projects rush to the ground without adequate research and design. Therefore, it is impossible to do well in "scope management".

In addition, most projects in China, especially the public works designed by the Institute of design, have a lot of "design waste", and the state has no legal sanction on the "design waste", so it also brings great losses to the project cost.

To do all the design research work before starting work, try to avoid large area "change of scope", strictly control "design waste", and dynamically control the cost management of the whole project, is the core link of doing well the cost management of large-scale construction project.

Cost management is an important part of project management.

With the continuous development of science and technology, especially the IT industry, various project management and cost management software explode.

For this advanced "high technology", most of the construction enterprises that are still in the primitive management level are sniffing at it. They think that it is not very useful and easy to make mistakes.

At present, the practicability and ease of use of project management software in China still need to be improved. However, the society always wants to move forward. Computers always replace manual work.

If enterprises want to improve their market competitiveness, fundamentally improve their management ability and level.