Optimization of Cost Performance Index in Construction Project Based on Influencing Factors

Abstract

Project control has become a critical success factor in the project implementation phase. The execution of construction projects requires a well-planned and designed management system to achieve optimal results. The development of a project always involves several issues that need to be managed, one of which is cost. The planning and implementation stages greatly influence cost escalation in a construction project. Earned value method is a method of project controlling, through performance indicators in execution phase including cost performance index. This research aims to develops a financing model in project implementation based on the project's cost performance index and influencing factors. The data was collected by distributing questionnaires to project stakeholders involved in construction. Modelling was generated with combining earned value criteria with a dynamic systems approach. The result shows that the developed model was run well through verification and validation. The model and manual calculation generates the same value of cost performance index at the control point (at week 32) of 1,29. The value is greater than 1, therefore indicates no cost overruns or potential savings. The final goal of this study is the accuracy of actual costs by controlling the causal factors through model simulations.