This seminar uses actual cost control cases and combines the real estate dynamic cost control catalog to conduct an in-depth study of real estate full cost control.

1. Land cost. In the current real estate market, land costs account for a relatively large proportion, accounting for about 30% or even higher of the total cost. The cost of acquiring land directly determines project profits and even affects the survival of the company. Therefore, how to obtain land and how to obtain cheap land is a topic that developers have always needed to explore. Large-scale real estate companies have a wide-area layout, such as Country Garden. Based on product positioning, regional consumption levels, and economic development levels, they respectively deploy in first-, second-, third-, and fourth-tier cities. "If the east is not bright, the west will be bright." Even if the first- and second-tier cities are restricted, However, the huge total number of third- and fourth-tier cities still ensures the cash flow of enterprises. Land that others are unwilling to take has become a golden treasure in the eyes of a few real estate companies. In addition, Sunshine City is called a "dark horse" by the industry. In 2011, Sunshine City's sales were 2.3 billion yuan, but in 2012, its sales reached 10 billion yuan, officially entering the tens of billions of real estate companies. In 2017, Sunshine City's sales were 95.15 billion yuan. The market layout is worth learning. When it is small, it will vigorously deploy in fourth- and fifth-tier cities or counties with low risks, low land costs, weak economies but great development potential.

For small and medium-sized real estate companies, there is no need to risk entering the fiercely competitive market. It may be wise to delve into regional markets and explore markets with development potential. Real estate companies can reduce their investment risks through research on market layout and investment expansion. Combining the actual situation of the company and coming up with land that is in line with the company's own development can effectively avoid market risks and further reduce land costs. Small and medium-sized real estate companies should grasp the land acquisition window period, acquire land with high investment value, position high-turnover projects or premium projects, conduct internal control management, and externally shape their image to form good cash flow, reduce land acquisition costs, and maximize profits.

2. Upfront and administrative charges. This part of the cost accounts for about 2%-3% of the total cost. It is not a large proportion, but it is most easily ignored. In the process of project cost management, it is often found that some administrative fee items are overpaid. Due to the rapid personnel changes or resignations, the administrative charging standards were not systematically sorted out beforehand, and the charging standards changed quickly. Government departments continued to use the old charging standards for charging, resulting in increased costs. This fee is generally charged based on the construction area. If the construction scale of a project reaches one million square meters, this fee will double for every additional RMB 1. If you are not careful, it will cause unnecessary cost increases.

In response to the above situation, the following suggestions are made for this part of cost management.

2.1 In terms of upfront costs, increase strategic cooperation efforts, such as establishing long-term cooperative supplier libraries for supervision, exploration and other units to reduce costs at the source;

2.3 Increase cooperation with local governments Strengthen communication, and some costs can be reduced through coordination, such as slag costs, road occupation operating fees, etc.

3. Project management costs. This part of the cost accounts for about 50%. The focus of engineering cost management lies in design, development rhythm and process control.

3.1 Design aspects. Optimize design drawings from a design perspective, thereby reducing construction costs. Take the basement design of a certain project as an example to study the importance of design quality in cost management. This section recommends studying the basement design of Poly Real Estate and Longfor Real Estate. In fact, in terms of design, especially reducing costs through the design and layout of individual buildings, it is also worthy of study and will not be discussed in detail here.

3.1.1 Basement outline design. After calculation, it can be concluded that under the premise of the same area and the same height of the basement, the squarer the basement, the smaller the wall panel perimeter, which means the most reasonable design and the lowest cost. The underground garage model design of a certain project is not square, which leads to an increase in the length of the wall panels. The concrete content and steel bar content can be reduced by rationally laying out the basement model. The outline of the basement should be as square as possible, and try to avoid a large number of beveled edges, sharp angles, and too many folded edges, which will increase the amount of wall panel work and inefficient parking. In addition, the outline of the basement coincides with the original vertical components of the tower as much as possible.

3.1.2 Basement area planning. Fully calculate the ratio of above-ground and underground parking spaces, and make use of the local government's regulations on the ratio of above-ground parking spaces to ensure that all parking spaces on the ground should be arranged in rows (except for considering the quality of the community).

Try to coordinate not building or building less civil air defense area. If through coordination, no construction or less construction can be achieved, which is more conducive to cost management, I would rather pay the civil air defense relocation construction fee of 1,700 yuan/m2, because the current civil air defense construction cost is about 3,000 yuan/m2, which is much higher than the standard for civil air defense relocation construction fees. , which can effectively reduce costs.

If you disagree with not building or building less, since the current civil air defense basement area has been designed in accordance with the civil air defense requirements, you can only consider reducing the non-civil air defense construction area to save costs. During the planning, the parking spaces on the ground were fully arranged. Considering the overall quality of the community, the parking spaces were first considered to be arranged around the business (provided that the fire protection requirements were met), then the surrounding walls of the community were considered, and then the layout of the basement was considered.

① Reduce the direct access of towers to civil air defense garages and increase the proportion of individual buildings directly connected to non-civil air defense garages.

Civil air defense garages should be arranged in open areas. In many projects and even surrounding markets, the elimination of parking spaces is far from covering the construction cost of underground garages. Therefore, during planning, the proportion of parking spaces in civil air defense garages should be increased to reduce the non-civil air defense construction area.

② Fully increase the efficiency of parking space usage and reduce ineffective space design. The so-called parking space utilization efficiency is to make full use of the garage area so that the parking spaces should be arranged in rows. (It is recommended to study the underground parking space layout of Poly Real Estate). For example, the fire pool of Poly Real Estate is set up under the car ramp. The civil air defense department makes full use of the area from the tower into the basement to reduce the proportion of the basement area occupied by equipment rooms alone, thereby reducing the garage area. . In addition, the arrangement of the parking spaces and the setting of the spacing between the axis grids also affect the parking efficiency of the parking spaces. At present, the comprehensive parking efficiency of Longfor and Poly Real Estate underground cars in the industry is 30m2 to 32m2/parking space.

3.1.3 Design of basement floor height. Fully compare the cost changes caused by the basement layer height setting and the roof soil covering thickness. After calculation and analysis, a single floor height of 3.6m in the basement can meet the requirements. If we blindly pursue space, it may lead to an increase in costs. But instead of lowering the height of the basement wall panel, the cost will definitely be reduced. The cost of excavation and backfilling of the roof covering soil must also be taken into consideration. Whichever is smaller, the cost will be considered comprehensively. In addition, if conditions permit, it should be designed as a semi-basement as much as possible, and underground parking garages should be centralized. The semi-underground garage should minimize the depth of the underground part, and use the green covering soil load on the upper part of the roof to reduce or eliminate the use of anti-outlift piles to save the amount of underground engineering; when designing the fully underground garage, try to comprehensively utilize the water buoyancy and upper load values. Balance, reduce the floating resistance of the pile foundation, control the minimum covering soil thickness required for ground greening planting and comprehensive pipeline burial, and reduce the burial depth of the basement.

3.1.4 Comprehensive pipeline layout of basement. Comprehensive consideration of basement pipelines. The layout of the comprehensive pipelines in the basement of a certain project is not reasonable. Most of the air ducts are arranged above the driveway, which is not beautiful and also increases the cost. Benchmark companies in the industry follow the following standards when designing basement pipelines: ① Reasonable arrangement to reduce detours and intersections; ② Similar pipelines should be merged into paths as much as possible, which is not only beautiful, but also reduces supports and hangers, and also reduces the chance of cross-collision.

3.2 Development rhythm. Optimize the development pace, effectively control the construction progress, and reasonably plan costs. Project cost is not a matter of the engineering department and the cost department. Project cost control is related to finance and marketing. The engineering department should take production and sales as the general tone, strengthen its connection with finance and marketing, and achieve production and sales based on the production-to-sales ratio. At the same time, the cost department will provide reasonable reminders based on changes in the material market and reduce costs through development rhythm without affecting sales. For example, when material prices are high, the progress will be appropriately slowed down. In addition, engineering, marketing, and finance collaborate to reasonably plan the construction progress. For example, the main task of the current period is to collect payment. The project should conduct project progress management in a planned manner based on the sales situation of each building to achieve pre-sale, structural capping, facade Complete the other node requirements to achieve effective payment collection. Paying attention to cash flow means cost management, and paying attention to repayment means reducing costs, because under dynamic costs, funds have time value.

3.3 Process Management. Cost control during the construction process requires both meticulous attention to detail and an overall awareness. Often the cost of one detail is reduced, but the cost of another node increases significantly, thus losing the meaning of cost control. For example, during foundation construction, over-excavation often occurs. At this time, the choice of backfill material is crucial. Usually, the design institute and exploration unit recommend plain concrete backfill. Although the cost of rubble concrete or gravel concrete backfill is lower, some It is difficult to obtain local materials, and it even takes about 10 days to complete the backfilling. The losses to pre-sale and market-capture projects may be incalculable. Therefore, blindly choosing plain concrete backfilling may cause even greater losses. All in all, process cost control should be based on the actual situation of the project and comprehensively consider cost savings from multiple perspectives. There is actually no contradiction between "paying attention to the big and letting go of the small".

4. Reduce the costs of real estate companies from the perspective of financial operations. Establish real estate operation management from a financial perspective, and provide guidance and control from a financial perspective. The real estate finance department is by no means simply responsible for accounting, payment, and supervision. In the current stage of real estate development, the real estate finance department is given more responsibility for leading management and control, which results in more capable financial personnel working in benchmark real estate companies. was entrusted with important tasks. How to integrate financial operations into corporate business management and achieve effective integration of industry and finance, the following aspects should be done, but are far from limited to the following points.

4.1 Optimize the financing structure. In recent years, financing difficulties have become an unavoidable topic for real estate companies. Especially since the introduction of the "Three Red Lines", the impact on small and medium-sized real estate companies has become increasingly obvious. However, the optimization of financing channels and financial structure is a task that real estate companies must face. After reviewing the data, we found that the comprehensive weighted financing cost of Seazen Holdings in 2016 was 5.49% and 5.32% in 2017. Although Seazen Holdings' net debt ratio increased to 71% in 2017, which was an improvement from the previous year, the ratio of short-term liabilities to monetary funds was 0.68, indicating less debt repayment pressure in the short term. Financing costs can be effectively reduced through the following measures. First, enrich financing channels.

If there are only a very limited number of options, the cost must be very high. Only with more options can you have room for choice and bargaining. The second is to optimize the financial structure, keep the debt level at a reasonable level, and borrow more long-term loans. The third is to increase funds. The usage efficiency can effectively increase the number of fund turnover.

4.2 Comprehensive budget helps cost control?. A comprehensive budget is not just about annual strategic planning, but also about what we will do this year and how much we will spend and earn. Financial operations empower financial managers to provide guidance and reminders based on structure and data analysis. For example, when acquiring land, it is not a blind acquisition. Finance should analyze the period during which the company's land parcels are available for sale at the current stage based on the land survival ratio, so as to provide the leadership with decision-making based on the land acquisition period at the current stage; compare land and goods ( Annual land price / annual land value) analysis of land quality, the normal range is 10% to 40%, which is relatively safe. More than 40% means that the company is operating at a high level, the land cost accounts for a large proportion of the total cost, and the land reserve of high-priced land If the value-added rate cannot beat the cost of capital, it means that the reserve will be a loss. Through comprehensive budget analysis, we can provide guidance on what kind of land should be acquired and whether it should be acquired, so as to avoid blindly acquiring land or acquiring land at high prices, which will lead to increased costs.

5. Establish full cost awareness. This part is particularly important. The key to the formulation of various systems lies in implementation and awareness. It is often said that the system is cold but management is alive. If managers do not have full cost control awareness, the system will gradually deviate during the implementation process. Therefore, real estate companies should instill cost awareness in all employees during cost management, and suggest that the reduction of "effective costs" should be linked to salary.

5.1 Clear responsibilities and good communication. Cost control is by no means a matter of the cost department. Otherwise, if one department is saving money and another department is spending money, cost control will be meaningless. Different departments have different positions, different positions, and different understandings of costs. For example, it is the easiest thing for the engineering department to spend money to carry out work, but the cost department disagrees from the perspective of cost control. The best way is not to deal with opinions, which requires the establishment of an effective communication mechanism while clarifying responsibilities.

5.2 Establish awareness of the "scissors difference" in costs. The so-called "scissors difference" is the difference between expenditure and income, but it is not a simple subtraction. For example, in real estate cost control, it often appears that improving quality increases costs, and most cost managers are opposed to this. In fact, depending on the project, cost managers need to give objective advice. If it is a premium property, it is advisable if the premium can be increased through quality improvement and is higher than the investment cost. Although the cost is 1, but the return is 10, there is a premium of 9. Therefore, cost managers should have good cost awareness and calculate the "scissors difference" well.

6. Full cost summary. Cost summary is a review, summarizing the highlights and deficiencies in the entire project management process. The highlights are worthy of publicity, but more importantly, it is the summary of deficiencies. The increase or decrease in costs may be reflected in communication, design, or the professionalism of management personnel. We should make targeted decisions based on the summary. In addition, cost summary requires more refined data precipitation. The purpose of data precipitation is to conduct better cost management.