1. Promote design bidding and select design units on the basis of merit

Actively promote the design bidding method that combines architectural plans with economic plans, and try to integrate the main body of the project and supporting overall planning and architectural design , landscape design, etc. are put together for bidding, multiple bids are used, and relevant experts are organized to comprehensively evaluate and determine bids. This can not only select high-level and good communicative design units, but also promote the design unit's overall spatial layout and architectural design of the project. Pioneering and innovative in terms of shape, function and landscape environment design, and working hard to reduce project costs. Among them, it is very important for Party A to choose a design unit suitable for its own project positioning. When selecting a design unit, it is best to adopt the form of bidding. To select a suitable chief designer for Party A's project, the design fee must be reasonable and it is advisable to start with an understanding of the design Choose between units. When signing a design contract, the design unit must provide the design progress and payment plan approved by Party A, and clarify the liability for delay. Payment is linked to the progress and quality of the design. At the same time, designers must have full communication with relevant personnel of the government approval department. During the design process, Party A must frequently conduct adequate and effective technical exchanges with designers and relevant government personnel responsible for approving design documents to avoid design rework due to lack of understanding of the approval department’s opinions. Track the quality and progress of the design according to the contract. Party A establishes or based on the planning and design key points and design tasks approved by the local planning authority, it needs to collect and analyze various control factors in the area where the development project is located, such as the municipal conditions surrounding the area, market and product positioning requirements, and main customer groups. and house type matching, etc. In order to control the construction and installation cost at the starting point of the design, Party A requires the design unit to control the upper line of the unilateral cost based on the project cost estimate. Avoid the situation where it is discovered that the target cost control requirements are far from the target cost control requirements only when all the design results are completed. Party A must have a clear positioning of the project, a clear definition of the buyer group of the product, and clear requirements for the layout and architectural style in the planning and design, as well as the size and proportion of various types of units. The design cycle must be reasonable and allow time for review and discussion of results to avoid design quality defects caused by blindly rushing to progress. Design standards must be compatible with the market positioning of the project. Don't blindly pursue high, new, and beautiful, don't have redundant functions and redundant load-bearing capacity, and actively promote early control of design value at reasonable costs and profits. What we often say "use the least investment to achieve maximum benefits" can be understood as the following aspects: 1) Keep the project function unchanged and reduce the project investment; 2) Keep the investment unchanged and improve the project function; 3) Although the investment has increased , but the function improvement is even greater; 4) Reduce some secondary functions to significantly reduce costs; 5) Use new technologies, new materials, and new technologies to not only improve functions but also reduce project investment. 6) The interaction between planning, design and planning positioning makes the project goals clearer, including: analysis and judgment of the natural and social conditions of the land, understanding of constraints and evaluation of breakthrough innovations, analysis of location markets and market development trends Judgment, evaluation of product innovation and planning concepts to lead the market.

2. Carry out quota design and effectively control costs

Due to the current weak economic concept and market concept of design units, "emphasis on technology and light on economy", the grasp of design nodes is poor and the rush to The construction period, light quality, many contradictions in the drawings of various majors, and lack of detailed design. In addition, the charging standards for design fees are generally calculated based on the building area or investment amount, which is not conducive to the design unit to strengthen its awareness of cost control. The design is conservative and unreasonable, resulting in large waste. Party A must specify the cost limit in the design brief or investment estimate and link it to the design fee. Economic rewards (savings) and penalties (overspending) are imposed on design units. Implement a design supervision system as much as possible to strengthen cost control during the design stage. Try to avoid cost increases caused by later design changes. Based on development experience and investment estimation requirements, the design limits (cost, main material consumption indicators, such as the amount of steel bars and concrete per square meter, etc.) must be effectively determined, and a reward and punishment assessment and incentive mechanism must be established. For which major or section has exceeded the cost target, the reasons must be analyzed and solved through design modifications. Overcome the tendency to only focus on drawing and not settle accounts, and change "draw and calculate" to "forget and draw." We also use the technical indicators of similar construction projects and the experience data of other real estate projects in the same area to conduct scientific analysis and comparison, optimize the design, and reduce the project cost.

Actively promote quota design and improve the design economic responsibility system. Designers should be familiar with construction project budget quotas and cost quotas, and be familiar with budget prices of construction materials. They should then control the preliminary design and budget estimates based on the project investment estimate, and then use the preliminary design budget estimates to control the construction drawing design and budget estimates. Therefore, on the premise of ensuring functions and technical indicators, the professional and technical personnel of the design company must formulate a win-win strategy, reasonably decompose and use cost limits, integrate construction drawing design and construction drawing budget, and organically combine technology and economy. Strictly control design changes to ensure that investment limits are not easily exceeded. The project cost and cost management personnel of real estate development enterprises should actively cooperate with the design department to provide reliable basic project information in a timely manner.

To overcome the current situation of poor design and insufficient depth, frequent design changes bring certain difficulties to project cost control, resulting in uncertain factors that increase project costs. It is necessary to strengthen communication with design institutes, and at the same time When signing a design contract, we will add corresponding penalty and reward clauses to the contract to clarify the requirements based on whether the drawings can reach the depth of our bidding and construction drawings, how much the design changes during the implementation process, and the resulting cost increase or decrease. The design unit provides design estimates and electronic design drawings.

3. Adopt contract measures to effectively control the cost

In view of the current phenomenon that most design units have weak economic concepts and design changes are arbitrary, design changes and design changes should be added to the economic terms of the design contract. The revised fee limit clause states that if the design change fee exceeds a certain proportion (such as 5%) of the construction contract price, a certain proportion of the design fee (design warranty deposit) will be deducted. Adopting certain binding force is a measure to control various aspects such as design specifications, design standards, project quantities and estimated budget indicators. In the preliminary design stage, under the condition that the requirements of the specifications are met, the non-saleable area is reduced, and the area that is slowly decommissioned, such as centralized basements, is reduced. In the construction drawing design stage, through design optimization, some materials that have little impact on product quality are reduced in grade, such as sand aerated blocks, balcony glass railings, exterior wall paint and tiles, air conditioning decorative panels, etc. However, customer complaints and concerns For elevators, entrance doors, exterior wall doors and windows, video intercoms, etc. with many points, the price should be controlled while ensuring quality. Of course, it must be consistent with product positioning and sales contract commitments to owners.

4. Cost tracking audit and evaluation—all employees throughout the process

Cost control in the design stage is not just the work of the cost department, it must be the result of communication and coordination among multiple departments. At present, the cost control of most real estate companies in the industry at this stage has not achieved the expected results. The cost departments of most real estate companies only solve passing problems, and waste a lot of energy and affect work efficiency. If the management qualification problem is not solved, cost control will be empty talk. Which department is important and which major is important? There must be no shortcomings in order to solve the problem of overall improvement. The specialized engineering, design, cost, marketing and other management departments within the real estate company should strengthen close collaboration between departments in order to improve the cost awareness of all employees, formulate detailed design requirements and standard design briefs, and review the design unit's requirements. Design plans and construction drawings undergo multiple rounds of internal and external review; a comprehensive assessment and review are conducted on the structural form of the project (clarifying the responsibilities of the structural engineer), decoration standards, material and equipment selection, rationality and safety of the design, etc. For example, the door and window area is calculated based on the "window-to-ground ratio", and the roof area is calculated based on the base area. Avoid two phenomena: one is to pursue design effects regardless of cost, and the other is to lose quality due to unreasonable costs.