Strategic change towards cost-efficient public construction projects

Abstract

The cost of public construction projects is a central topic in project management. However, studies have primarily focused on cost at the project level, not on cost management at the portfolio level. In this paper, we take the perspective of a government agency, conducting a strategic initiative to increase cost-efficiency in their portfolio of construction projects. We use an action research approach to investigate the dynamics of the initiative and the implementation of resulting actions to achieve lasting change towards cost-efficiency. Co-creating actions for cost-efficiency together with the project teams was important for the success of the strategic initiative. For successful implementation, alignment of the objectives of the initiative with organizational strategy, and knowledge transfer between projects is central. This study expands the project management literature regarding strategic cost management of portfolios of construction projects and provides practical guidance for organizations.