Developers’ perception of cost drivers influencing project cost performance on Surabaya high-rise residential, Indonesia

Abstract

Good cost performance is one of the fundamental criteria of a successful project. The major challenges developers have in this process is to balance the budget and project cost performance. Most of the scholars agreed that the construction indu stry in any country is complex because it involves a broad range of stakeholders and has wide-ranging linkages with other areas. Some of these factors are also unknown at the project level, which create difficulty for project managers to assign a favourable contingency cost. Therefore, this work came to establish factors influencing project cost performance of high-rise residential development through macro indicators based on developer’s perspective. It sought to identify these factors in an effort to shed more light on how cost drivers affect project cost performance. From the study findings, there are seven cost drivers. These drivers are analysed based on significance and impact using multiple regression analysis. The top most in terms of significance are property market and construction industry, project characteristic factor, socio economic factor and project component costs factor. The least one out of the seven factors is the statuary regulation factor. In relation to impact, project stakeholder factor has the highest impact, followed by the property market and construction industry, project characteristic factor and project component costs factor. The least one is socio economic factors.