Contractor’s Perspective on Key Performance Indicators of Cost Control in Asian, Middle Eastern, and European Construction Projects

Abstract

ABSTRACT Construction project costs frequently deviate from their estimated costs. Cost controlling techniques/tools (CCTTs) can be used to monitor these deviations. However, the effectiveness of these techniques and tools has to be evaluated. Thus, the aim of this study was to identify the Key Performance Indicators (KPIs) of CCTTs used in Asian, Middle Eastern, and European construction projects. The study included a series of interviews with 15 experts to categorize the techniques and tools and identify their KPIs. A questionnaire survey was conducted among 300 chartered quantity surveyors to evaluate the level of significance of each CCTT and its KPIs. The highest number of CCTTs is implemented in the execution stage, while only few CCTTs are implemented in the initiation stage. The most significant technique used in the initiation stage is the ‘preliminary project estimate,’ and its most significant KPI is the ‘cost per functional unit.’ ‘Contract management’ is the most important technique used in the execution stage. ‘Final accounts’ with ‘effective contract sum’ as the KPI is the principle technique used in the closing stage.