The rapid urbanization in China has led to significant growth in the architectural design industry. However, as urbanization slows, the market is gradually shrinking, and traditional design firms face survival challenges. With external factors unchanged, self-renewal is necessary, and cost control is the core of this transformation. The paper analyzes cost management issues arising from organizational structures, operating models, and profit distribution in traditional management systems. It proposes project-based reforms to enhance cost management capabilities. Improvements include flattening organizational structures, matrix management, standardized processes, and flexible profit distribution mechanisms to boost resource efficiency and competitiveness. Case studies confirm that project-based reforms help improve productivity and profitability, aiding firms in facing a more challenging market environment.

China's urbanization, architectural design industry, cost control, project-based reform, organizational structure update, operational model update, profit structure update, competitiveness enhancement