Optimizing Cost Efficiency through Cost Control in Construction Projects: A Review

Abstract

This study explores various methodologies and factors influencing budget performance across different sectors, particularly in construction and public budgeting. Construction projects are inherently complex and prone to cost overruns, making cost control a critical aspect of project management. This study investigates the impact of cost control on cost efficiency in construction projects. A neural network model was utilized to identify key management factors affecting project budget performance, focusing on critical aspects such as project manager experience, team turnover, and budget updates. Several monitoring techniques for cost and performance deviations, including Activity-Based Ratios, were also analyzed, revealing their varying effectiveness. In the public sector, performance-based budgeting systems were discussed, with an emphasis on integrating planning and performance metrics for more informed decision-making. Challenges in implementing such systems were highlighted, particularly regarding political and organizational barriers. In construction, various approaches were examined, including cost estimation frameworks and performance-based budgeting tools. The research underlined the importance of accurate budgeting and cost control measures in both construction projects and public administration, suggesting that strategic adjustments, better forecasting, and active stakeholder participation could improve overall budget performance. This research paper presents a comparative analysis of various process-based cost control models utilized in construction projects. The objective is to evaluate each model’s effectiveness, advantages, and limitations to provide insights for project managers in selecting the most suitable approach for their specific project needs. Key Words: Cost Efficiency, Cost Control, Construction, Projects