Construction Cost Management Research Articles

Forecasting Construction Cost Indices: Methods, Trends, and Influential Factors

The Construction Cost Index (CCI) is an important tool that is widely used in construction cost management to monitor cost fluctuations over time. Numerous studies have been conducted on CCI development and forecasting models, including time series, artificial intelligence, machine learning, and hybrid models. Therefore, this study seeks to reveal the complexity of CCI forecasting and identify the leading indicators, trends, and techniques for CCI prediction. A bibliometric analysis was conducted to explore the landscape in the CCI literature, focusing on co-occurrence, co-authorship, and citation analysis. These analyses revealed the frequent keywords, the most cited authors and documents, and the most productive countries. The research topics and clusters in the CCI forecasting process were presented, and directions for future research were suggested to enhance the prediction models. A case study was conducted to demonstrate the practical application of a forecasting model to validate its prediction reliability. Furthermore, this study emphasizes the need to integrate advanced technologies and sustainable practices into future CCI forecasting models. The findings are useful in enhancing the knowledge of CCI prediction techniques and serve as a base for future research in construction cost estimation.

A Systematic Review to Advance Cost Management Strategies for Rail Projects

Developing a robust rail network has always been a priority for countries, especially those in the process of development. The growth of the rail industry plays a crucial role in boosting a nation's economy and productivity. As multiple national governments are actively developing rail projects to transform public transport from road to rail, it is evident that the knowledge in rail construction cost management needs a revamp after 20 years of research, hence the need of this study. The purpose of this paper is to provide an in-depth review aimed at establishing a standardized framework for identifying and categorizing the factors affecting cost performance in rail projects. As part of this study, a Systematic Literature Review (SLR) of journal publications on rail project cost management from 2016 to 2023 has been started to ascertain the noteworthy contributions that various stakeholders and educators contributed to the knowledge of cost management in rail projects. Ultimately, 23 publications had been selected to be critically analyzed. The analysis sheds light on current research trends, highlights gaps in existing knowledge, and suggests potential avenues for future research. The significant research findings include the need to explore effective stakeholder management in rail projects, developing effective mechanism/framework for all parties to ensure effective cost management and enhancing the connection between research and industry practice in the rail industry. Furthermore, as the thorough examination of literature identifies the research trends, researchers may delve into the fundamental concepts of the subject, draw valuable insights from the assessments, and progress towards areas where research is most needed as well as providing stakeholders and academics with impactful outcome for enhancing rail project cost management in the future.

A PMBOK-based construction cost management framework for BIM integration in construction projects

Cost overruns persist as a critical issue in construction projects. This study aims to explore how the integration of Building Information Modeling (BIM) can enhance project cost management processes aligned with the PMBOK framework, fostering improved construction cost control and management as well as decision-making. The study investigates the applicability of PMBoK cost management procedures within the context of BIM software and its various applications. A comprehensive BIM-cantered cost management framework is introduced to operationalize this synergy, encompassing planning, estimation, budgeting, monitoring, and control stages. This framework’s efficacy is validated through its application to an industrial facility, leveraging integrated BIM, scheduling, and cost tools. The findings revealed BIM’s benefits in visualization, clash detection, automated take-off, and 5D simulation, influencing informed decision-making during the project. However, these advantages coexist with certain limitations, including challenges in establishing bi-directional quantity-cost linkages, generating customizable reports, conducting risk-centric budgeting, and conducting in-depth subcontractor analyses. This research puts forth an applied BIM framework tailored to construction cost management and provides practical insights to guide adoption strategies and technology advancement needs. The study can assist industry practitioners and policymakers in re-evaluating cost management strategies concerning BIM capabilities.

高校建筑工程的造价管理与控制

With the continuous development and popularization of education in China, the pace of expansion in higher education institutions has been accelerating, leading to an increase in the scale of operation and the number of various construction projects in colleges and universities. As education becomes more widespread, to meet the demand for high-quality talent training, higher education institutions must actively improve their infrastructure to provide students with a good learning and living environment. In the context of the increasing scale and number of university construction projects, higher requirements have been set for construction cost management, and implementing effective cost management and control is an important prerequisite and foundation for improving the economic benefits of university construction projects. This article starts from the characteristics and significance of construction cost management, analyzes the problems in cost management and control of university construction projects from the stages of investment decision-making, bidding, construction, and completion settlement, proposes targeted countermeasures, and on this basis, provides rational suggestions for improving the level of cost management and control in university construction projects.

A hybrid building information modeling and collaboration platform for automation system in smart construction

Building information modeling (BIM) technology can organically combine data modeling and virtual reality, and compare them with actual construction objects to realize the smart collaboration of entity and the model in the construction processes, greatly reducing early stage mistakes and improve construction efficiency. This paper proposed an automation system framework of smart construction based on BIM technology and collaboration platform, and discussed the element configuration of smart construction based on BIM technology and collaboration platform, and finally elaborated the working mechanism of automated system based on BIM technology and collaboration platform. The study results show that the automation system based on the BIM technology and collaboration platform supports the rapid construction of large-scale three-dimensional scenes and the precise integration of multi-source data, and can bring together construction information and asset information from different sources to form an open, safe, and accessible digital environment. The application of smart construction technology in construction cost management has brought huge economic benefits, construction efficiency has been increased by 65%, construction period has been shortened by 30%, labor intensity has been reduced by 27%, and labor productivity has been increased by 39%, which has brought considerable indirect benefits to construction projects.

Analysis of the current status and comprehensive application research on BIM technology in construction cost management

With the advancement of national economic strategy, the construction process has encountered an escalation in problems and challenges, thereby emphasizing the significance of cost management. The current management of construction costs is confronted with numerous challenges, encompassing limited visualization capabilities, inadequate collaboration among diverse professions, isolated decision-making processes, and a lack of automated procedures. The emergence of BIM technology has brought forth the possibility to address these challenges, offering a green, efficient, and sustainable solution. The comprehensive implementation of BIM technology in cost management enables the refinement of project cost management. By conducting an in-depth analysis of the current state of civil engineering construction cost management, this paper proposes a comprehensive approach to applying BIM technology, which offers scientific and technical means for addressing these issues and serves as a catalyst for generating valuable insights.

New Strategies for Intelligent Computing in Improving the Accuracy of Engineering Costs

Abstract Accurate construction cost calculation is crucial for assessing project viability and selecting design programs. This paper enhances calculation accuracy by first employing the Boruta algorithm to identify vital cost-influencing factors, which serve as the basis for an improved construction cost model. We introduce an enhanced Artificial Neural Network (ANN) model that integrates the AdaBoost algorithm and cost-sensitive methods to refine construction cost estimations. The efficacy of this model is demonstrated through its overall engineering cost error rate of 3.92%, with specific errors in single-side cost, labor, materials, and machinery usage at 3.51%, 7.09%, 3.36%, and 7.93%, respectively. These results meet established accuracy standards, showcasing the model’s potential to significantly improve construction cost management and control.

Research on Cost Optimization of Prefabricated Buildings Based on Genetic Algorithm

For large-scale construction projects, adopting traditional construction methods has obvious drawbacks, such as long construction cycles, difficulty in ensuring project quality, high labor costs, and poor construction site environment. In order to solve the problems of cost management in prefabricated buildings, this paper studies the characteristics of prefabricated buildings and the principles, processes, and applicability of genetic algorithms. On this basis, the specific application of genetic algorithm in the cost optimization of prefabricated buildings is analyzed, in order to effectively improve the effectiveness of construction cost management and provide reference for relevant personnel.

Influencing Factors and Control Measures of Construction and Installation Cost Management

Influencing Factors and Control Measures of Construction and Installation Cost Management

The potential of new models of construction procurement to counter cost overruns in construction projects: an exploratory study from a contractors’ perspective

PurposeCost overrun is a significant issue in construction, an undesirable feature the industry has long been associated with. Poor procurement practices are often blamed for subsequent cost overruns in construction, especially with conventional procurement methods leading to outrageous cost overruns. The purpose of this study is to review the features of the new models of construction procurement (NMCP) and assess their potential to reduce cost overruns in construction projects.Design/methodology/approachA literature review was conducted to identify the issues of procurement leading to cost escalations. Primary data were obtained through exploratory, semi-structured interviews using a case study approach.FindingsClients’ lack of knowledge was highlighted as a key issue in procurement that interlinks with many factors causing cost escalation. The findings suggest that the features contained within the NMCP, such as early contractor involvement and collaboration throughout the project team, have the potential to make a positive contribution to addressing cost escalation in construction.Research limitations/implicationsThe primary research was undertaken as an exploratory study and presents the contractor's perspective. Further research is therefore suggested, with multiple organisations representing all key stakeholders in a construction project, including clients, consultants, sub-contractors and suppliers.Practical implicationsThe study recommends awareness of the NMCP be raised throughout the industry, and simplified information must be made available to help widen uptake of these contemporary procurement methods.Originality/valueAddressing the dearth of research concerning the use of NMCP within the industry, this study makes a niche contribution to the body of knowledge on construction cost management by illustrating the potential offered by these new procurement methods for addressing cost escalation. For an industry where collaboration is accepted with reservations, this case study demonstrates how novel collaborative strategies such as open book costing, project bank accounts and shared pain and gain mechanisms can be implemented as part of the procurement strategy and how such strategies can contribute towards minimising the cost escalation inherent in construction projects.

Construction Cost Control and Management Based on Mapping Model and BIM

Abstract At present, the information management of highway construction is still at different levels. Poor information coordination ability. Lack of adequate information technology support. BIM technology is used to realize cooperation and information integration among various disciplines. According to the characteristics of highway construction, this paper constructs the decomposition code of the BIM model by the particle swarm method. This model can better reflect the whole process of highway project cost control characteristics. The corresponding relationship between the “three-level list” and the BIM code is constructed. This paper makes a comprehensive analysis and discussion on the mapping between it and the “item list” in the three types of lists. Thus, BIM can be efficiently connected with the three-level list in the construction of bridge projects. It can better adapt to engineering construction and other engineering management requirements.

Construction cost management using blockchain and encryption

Data accountability (i.e., data integrity and traceability) concerns existing construction cost management platforms due to the risk of data manipulation in a centralized paradigm. Blockchain is a promising technology that provides immutable and traceable data storage with a decentralized architecture. However, the transparency of blockchain conflicts with the confidentiality nature of cost information. Therefore, this paper presents a novel framework based on blockchain and encryption to preserve both data accountability and confidentiality in construction cost management. The proposed new framework involves the development of a cost data model containing the required confidential cost information to facilitate partially transparent recordings on the blockchain. An access control model based on symmetric and asymmetric encryption as well as proxy re-encryption mechanisms is developed to prevent unauthorized access to sensitive cost data on the blockchain and transfer data access in dynamic construction projects (i.e., construction projects involving new members continuously). Subsequently, encryption-integrated smart contracts are developed for automatic and secure cost activities on the blockchain. The framework is validated with a desirable latency (at the millisecond level), throughput (at the hundred level), and storage cost (at the MB level) in three illustrative cost management scenarios. The results indicate that project members can have accountable and confidential cost data for dispute resolution and cost analysis, respectively, as well as efficient cost data access transfer.

Long-term Trends in Construction Engineering and Management Research in Korea

This bibliographic study presents a historical perspective on Korea's construction engineering and management (CEM) research and reports a 27-year analysis of papers written by Korean CEM researchers between 1993 and 2019. Frequency analysis of the collected papers was performed according to three main perspectives: the knowledge area, research topics, and methods. Knowledge area analysis shows that research fields have become more diversified and subdivided. Construction technology, cost management, and planning and schedule management have consistently maintained the top three positions for the past three decades. In addition, quality management, resource management, and risk management were also ranked high in the 2000s. In the 2010s, safety management, environmental management, quality management, and construction industry and business were ranked high. These changes reveal how Korean society's and industry's demands have changed over the years. Furthermore, the findings from keyword frequency analysis revealed that the focus of CEM research was mostly on cost and scheduling in the 1990s and on scheduling, risk, cost, and construction automation in the 2000s. The advent of Building Information Modeling (BIM) in the 2010s was an epochal change. This study found that the research methods frequently used by CEM researchers were simulation, optimization, regression analysis, computer vision and image processing, 3D modeling, case-based reasoning, genetic algorithm, case study, economic analysis, and artificial neural network.

Study on the Application of BIM5D in Modular Prefabricated Building Project in Changsha Makeshift Hospital

Building makeshift hospitals is one of the important measures to deal with the COVID-19 outbreak, which has brought great pressure and challenges to China's public health system. Makeshift hospital construction usually uses prefabricated boxes, which provide faster construction, safer manufacturing, better quality control and lower environmental pollution compared with traditional on-site construction. In the process of procurement, transportation and installation of prefabricated boxes, there will usually be installation deviation, material failure to arrive in time leading to labor slowdown, low efficiency of hoisting and installation, poor coordination among different professions and other problems. Taking Changsha makeshift hospital project as an example, this paper analyzes the application of BIM5D technology in the processing of prefabricated components, the layout of construction site, construction simulation, construction cost management and construction schedule management, and concludes that the use of BIM5D technology in the construction management stage of the prefabricated construction project of makeshift hospital can greatly improve the management and control ability of the management personnel. Obviously improve the quality of prefabricated buildings, save time and cost, through the BIM5D information integration and construction simulation to make the construction management of prefabricated buildings more efficient coordination.

Examining the potential use of augmented reality in construction cost management tools and techniques

Purpose Construction cost management is one of the important processes that should be achieved effectively and accurately for successful project delivery. Modern-day construction cost management demands a high level of spatial skills. Augmented reality (AR) can potentially increase the stakeholders’ spatial skills as a supportive technology to traditional cost management tools and techniques. AR is a breakthrough technology that could considerably ease execution in various industries, but AR applicability in cost management has not been studied extensively. Thus, this study aims to explore the use of AR in construction cost management tools and techniques. Design/methodology/approach Data were collected using a qualitative approach consisting of two rounds of the Delphi technique. A total of 22 experts in the construction and information technology fields were interviewed using a purposive sampling technique. The manual content analysis helped analyse data. Findings The study identified AR features with the potential to increase the usage of cost management tools and techniques. AR can enable spatial skills (abilities, thinking and tasks) in most cost management tools and techniques. However, technical, cultural and technical and cultural barriers obstruct the use of AR in the construction industry. Originality/value The usage of AR in construction cost management tools and techniques has not been examined in detail until now. Thus, the study was developed to meet the industry needs and fill the literature gap to investigate the potential use of AR in construction cost management tools and techniques.

Using principal component analysis to identify latent factors affecting cost and time overrun in public construction projects

PurposeCost and time are two of the primary benchmarks in which construction projects are measured. A variety of factors, however, affect cost and time on construction projects, as identified in previous research. This has led to a need for better understanding how factors affecting cost and time overruns on public construction projects can be managed more efficiently. The purpose of this paper is to address these issues.Design/methodology/approachIn this study 26 factors affecting cost and time overruns on construction projects were identified, through qualitative interviews with project managers from Danish governmental agencies and through a literature review. Through principal component analyses the 26 factors were subsequently narrowed down to four primary latent factors.FindingsThe identified four latent factors affecting cost and time overruns on public construction projects were lack of quality management, lack of project pre-planning, lack of user management and lack of project management.Originality/valuePrevious research has focussed on increasing knowledge by identifying and ranking factors affecting time and cost performance. This has led to the identification of an overwhelming number of factors to use for managing construction projects. The present research reduced the number of factors by clustering them into key latent factors responsible for most of the deviation in performance, narrowing the scope of construction cost and time management into a few tangible key focus areas. This supports and improves fast decision-making that is necessary in a changeable environment such as construction.

Methods and tools of a construction cost management system at the pre-project lifecycle stage of a construction facility

Introduction. The cost of construction is the most important indicator of any investment and construction project which is subject to change at every stage of its lifecycle due to the influence of many internal and external factors. Creation of an effective integrated construction cost management system, which allows controlling changes in construction costs in the process of developing a construction facility, is relevant for all participants of investment and construction processes. Certain methods and tools are applied at every lifecycle stage of a construction facility; they solve construction cost management problems. At the stage of capital investment planning and preliminary design, the main task is to determine trustworthy construction costs and possible limits of their change, taking into account any risks and uncertainties. This task turns more complex due to the lack of initial data about the facility and tight deadlines. This article is focused on the system of methods and practical tools used to determine construction costs at the stages of capex planning and preliminary design of a construction facility.
 Materials and methods. In the course of the study, current construction cost calculation methods were analyzed. Methods of analysis, synthesis, expert and comparative evaluation were applied.
 Results. As a result of the analysis the main principles of this methodological approach and a set of practical tools were developed to find reliable construction costs.
 Conclusions. The proposed methods and practical construction cost management tools can be applied in the process of implementation of investment and construction projects of any complexity.

Development of a capital expenditure model in the context of construction digitalization

Introduction. The purpose of this research project is to study the development of construction digitalization methods and means. Substantial discrepancies between the state digitalization policy and the practice of mastering digital instruments in the course of construction and investment activities hinder the high-quality implementation of certain tasks. Of particular interest is the problem of calculating capital expenditures at various stages of implementation of an investment project.
 Materials and methods. Methodological approaches to digitalization problems are based on the pricing subsystem extracted from the information model of a project. This subsystem is used to address the main pricing tasks pursued by the government authorities and construction industry contractors implementing their own digitalization options. Conflicting interests of different participants in construction and investment projects, as well as the variance in the informatisation stra­tegy, implemented at the previous stages, substantially complicate the search for a solution that equally satisfies the state and the business community.
 Results. The authors have identified the need to devise consistent state-level methodological approaches to developing information modelling architecture, taking into account the current practice of construction cost budgeting in the course of project management. Towards this end, the logical structure of the “Pricing” subsystem was developed using the information modelling technologies. Design companies, technical clients, project managers, and construction contractors must have equal rights to access and handle construction cost data.
 Conclusions. The authors have found a discrepancy between state approaches to construction project budgeting and cost management practices at the stages of construction project implementation. No large-scale transition to information mode­lling is feasible without the adoption of unified methodological solutions in terms of cost calculations.

Investigation of Construction Cost Overrun Issues and Management: Evidence from a Public University in Ghana

This study investigated the issues and management of construction cost overruns in a public university in Ghana. Specifically, the study answered the following research questions: (1) What types of project experience construction cost overrun? (2) What are the causes of project construction cost overruns? (3) How are project construction cost overruns managed? The study used the qualitative research approach. Documentary reviews and participant observation were the research methods employed for the data collection. The study showed that all types of construction project irrespective of the source of funding (i.e., internally generated funded, Ghana Education Trust Funded and externally funded project) experienced cost overruns. Also, it was established that contractors, location of the project, project consultants and funders were responsible for construction cost overrun in the university. In terms of the management of projects with cost overrun, they were based on the circumstances surrounding each project.The study recommendsthat due diligence should be done before awarding construction project contracts to avoid contractual stalemates in the future. Also, the income statement of contractors should be thoroughly analyzed to ensure they are not concurrently executing numerous projects and have the financial capacity to execute the project. Other resources like human resources and machinery should also be thoroughly analyzed to ensure their adequacy. Additionally, project consultants should ensure that their roles in projects that have been awarded for construction are effectively and efficiently carried out.

Integrating Building Information Modelling (BIM) and Artificial Intelligence (AI) for Smart Construction Schedule, Cost, Quality, and Safety Management: Challenges and Opportunities

Integrating Building Information Modelling (BIM) and Artificial Intelligence (AI) for Smart Construction Schedule, Cost, Quality, and Safety Management: Challenges and Opportunities