Project Cost Management Research Articles

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.

Real-time forecasting of TBM cutterhead torque and thrust force using aware-context recurrent neural networks

Tunnel Boring Machines (TBMs) are instrumental in the construction of modern tunnels, known for their operational reliability and efficiency. The real-time prediction of cutterhead loads is essential for effective project scheduling, cost management, and risk reduction. This study develops machine learning models for predicting future cutterhead torque and thrust force, simultaneously. The dataset is derived from the Yingsong water diversion project and consists of 12,962 steady-state boring cycles. Because geological conditions and setting values are available in advance, we build a geological parameter-based model and a setting value-based model for regression analysis of cutterhead torque and thrust force. In one-step forecasts, the operational parameter-based model closely captures the trend of the measured results, employing the recurrent neural network (RNN), long short-term memory (LSTM) and gated recurrent unit (GRU). We propose an aware-context recurrent neural network (AC-RNN) model that integrates historical operational parameters and the aware context of setting values, leading to a significant improvement in forecasting accuracy. A sensitivity analysis is carried out to quantify the relative importance of input parameters, revealing that the setting value of revolutions per minute is crucial in forecasting. The results of this study offer valuable practical insights into real-time forecasting, thereby informing engineering applications in this field.

Varying Levels of Proficiency in the Delivery of Value Engineering Objectives among Built Environment and Allied Professionals in Kogi State, Nigeria

Value Engineering (VE) practices analyze designed building features, systems, equipment, and material selections to achieve essential functions and enhance results while reducing the life-cycle cost. Hence, the objective of this paper was to evaluate the varying levels of proficiency in the delivery of VE objectives among the Built Environment and allied professionals in Kogi State, Nigeria. Data were harnessed from 94 study questionnaires administered across strata of these professionals in the study area. It was found that Architects, Builders, Engineers, Estate Surveyors and Valuers, and Town Planners in the study area exhibited varied levels of proficiencies across specific value engineering objectives (VEOs), whereas project managers and quantity surveyors exhibited very high-, and high levels of proficiency in the delivery of all the ten VEOs respectively. The variation which is an indication of their diversified skills in project cost management and control was significantly determined by the ten VE objectives commencing with enhancing of project functionality and terminating with minimizing project operating cost. The study recommended project managers and quantity surveyors as first- and second choice professionals in value workshop facilitation, given their high levels of proficiency in the delivery of these VEOs.

The Relationship between Pre-Estimation and Cost Management in Industrial Construction Projects

Industrial construction projects are the foundation of organizing industrial production, requiring both quality assurance and cost considerations. Pre-estimation of project costs and cost management are essential means and methods for project cost management. Strengthening the pre-estimation management of construction project costs can effectively control project costs and quality, save funds, and provide data support for management decisions. This article first briefly introduces the concepts of pre-estimation and cost management in engineering costs, focusing on the relationship between pre-estimation and cost management in industrial construction projects. It then proposes countermeasures from the aspects of enhancing the scientificity and accuracy of pre-estimation compilation and strengthening fine management on the construction site, aiming to provide some reference for the industry.

Research on Cost Management Evaluation of Urban Renewal Projects under EPC Mode

Compared with developed countries, the research on modern urban renewal in China is relatively late. However, with the landing of more and more projects in recent years, since Guangzhou, Shenzhen and other places took the lead in urban renewal, urban renewal has gradually entered a period of market-oriented and diversified operation. In recent years, under the influence of urban renewal strategy, the construction of old residential renovation projects is in full swing. In order to reduce the risk of construction, the construction unit often selects EPC project general contracting mode as the contract form of old residential renovation projects. However, the EPC project general contracting mode not only reduces the investment risk of the construction unit, but also greatly improves the difficulty of the general contracting unit's cost management of the renovation project of the old residential area. In order to complete the renovation project of the old residential area within the range of the budget estimate approved by the government and obtain the expected social benefits, cost management has become the control point of the project management of the EPC project general contractor. Based on the perspective of the general contractor, this paper takes the renovation project of the old residential area under EPC mode as the research object, uses AHP and fuzzy comprehensive evaluation method to evaluate the project cost management, analyzes the deficiencies in the actual cost management and puts forward countermeasures and suggestions.

The application of Bayesian network analysis in demystifying construction project subcontracting complexities for developing countries

Purpose This study aimed to address a gap in subcontractor management by focusing on previously unexplored complexities surrounding subcontractor management in developing countries. While past studies concentrated on selection and relationships, this study delved into how effective subcontractor management impacts project success. Design/methodology/approach This study used the Bayesian Network analysis approach, through a meticulously developed questionnaire survey refined through a piloting stage involving experienced industry professionals. The survey was ultimately distributed among participants based in Accra, Ghana, resulting in a response rate of approximately 63%. Findings The research identified diverse components contributing to subcontractor disruptions, highlighted the necessity of a clear regulatory framework, emphasized the impact of financial and leadership assessments on performance, and underscored the crucial role of main contractors in Integrated Project and Labour Cost Management with Subcontractor Oversight and Coordination. Originality/value Previous studies have not considered the challenges subcontractors face in projects. This investigation bridges this gap from multiple perspectives, using Bayesian network analysis to enhance subcontractor management, thereby contributing to the successful completion of construction projects.

Creation of a System of Cost Management Indicators for the Construction Investment Projects of the Green Healthcare Buildings

Introduction. Construction of the green healthcare buildings is a rather new and priority direction of construction in China. One of the key components of efficient implementation of the projects of green healthcare buildings is the cost management of a construction investment project. The projects of green buildings envisage the advanced technical content of a facility, a wide project scope and large number of participants. Therefore, the cost management requirements have to be more demanding, however, the traditional fragmented management fails to meet the requirements fostering the development of the green healthcare buildings. The present research investigates the issues of cost management of the green healthcare construction projects, analyses the necessity, feasibility, development trends and practical cost management problems thereof. The research strives to develop the cost management assessment indicators for all life cycle stages of the projects of green healthcare buildings.Materials and Methods. The research was conducted using such methods as the literature review and the expert interview methods. The expert interview method allows using the experience of experts from the related fields to assist in decisionmaking. Therefore, a questionnaire was developed as a part of the research.Results. Upon in-depth study of the various factors affecting the cost management of the green healthcare construction projects, the strategies and response measures have been developed based on the advantages and cost management features. By summarizing the cost management assessment indicators referring to implementation of the green healthcare construction projects and by combining the opinions of the experts and scientists from the related fields, the cost management assessment system for a project of green healthcare building has been created. The created assessment indicators make it possible to implement better control over the costs assigned to the green healthcare construction projects, elevate the level of project cost management, enhance the integrated benefits of the project and ensure the cost management and cost control for the similar projects.Discussion and Conclusion. The results of the research provide a theoretical basis for creating a cost management assessment system for the green healthcare construction projects aimed to solve the problems of cost management of the green healthcare buildings. The practical significance consists in providing a real practical approach to improving the cost management of the projects of green healthcare buildings.

IMPACT OF ECONOMIC FACTORS ON DESIGN AND CONSTRUCTION PROCESSES IN ARCHITECTURE AND CONSTRUCTION

The influence of economic factors on the design and construction processes in the architecture and construction industry is under consideration and theoretically underpinned. The following aspects (factors of influence) were found to be among the economic problems faced by Ukrainian architects, developers and urban planners. Design and construction costs are the first problematic and applied area. The general classification of design and construction costs has been presented. It is noted that a project can be made more affordable and efficient through effective project cost management and finding ways to optimise costs. The economic feasibility of using the latest technologies is the second area of concern and application. The authors argue that the introduction of modern technologies such as BIM (Building Information Modelling), 3D printing in architecture and intelligent systems in buildings often faces economic barriers. However, by increasing process efficiency and reducing time and financial costs, they believe these technologies can be cost effective in the long term. Another problematic, applied area is energy efficiency. It has been noted that energy efficiency in construction requires up-front investment that can significantly reduce future building maintenance costs. Both the long-term savings and the improvement in the quality of operation of the facilities should be taken into account when assessing the profitability of such investments. It has been found that there are a number of ways to optimise the activities of a construction company. One of these ways is to implement an energy saving strategy in the company. This strategy consists of several stages. The first stage, based on the parameters of the company’s energy status, is to formulate a set of objectives. This means calculating and setting targets for reducing the energy consumed and improving energy efficiency. The second stage is the planning and implementation of a series of measures to save energy in the building. These may include the installation of energy-saving equipment, the modernisation of heating and air-conditioning systems, the introduction of energy-efficient technologies in the construction process, the integration of energy-saving management systems, etc. The third step is to monitor the energy-saving processes. This includes systematic analysis and evaluation of the results of the implemented measures, monitoring energy consumption, identifying and eliminating potential problems. According to the authors, intensifying the introduction of new energy-saving technologies is the innovative component of a construction company’s energy-saving activities. It is also important to develop scientifically based means of organising and managing the energy saving process in construction. The fourth problematic and applied area is the development and implementation of cost-effective norms and standards. It should be noted that improving the quality of design and construction, as well as improving economic performance by optimising the use of resources, can be achieved by updating the regulations and standards governing construction and architectural processes through the integration of new knowledge and technologies. In particular, the cost of running construction projects can be optimised by considering economic parameters in the development of norms and standards.

Factors affecting the successful implementation of telecommunication tower projects in Zambia

The research aimed at identifying factors that affect the successful implementation of telecommunication tower projects at Airtel Networks Zambia Plc and IHS Zambia Limited, in order to ensure adequate measures are put in place to support the successful implementation of telecommunications tower projects by market players. The study took a pragmatic approach to inquiry with a triangulated design where 16 professionals with industry experience and position of influence were purposively recruited. Data was collected using questionnaires and interviews. Descriptive statistics and Chi-square statistics were used to analyse quantitative data, while content analysis was used to analyse qualitative data. The study findings revealed at least 5 factors that negatively affect the successful implementation of the telecommunication tower projects and these are Projects Scope Management, Projects Time Management, Projects Cost Management, Projects Communication Management, and Human Related Factors. The study also revealed that these factors had an adverse impact on project scheduling hence resulting into project delays. Subsequently, it was revealed that delayed legal formalities led to excess project expenses in form of warehouse and rental charges for the piece of land. Additionally, the study findings revealed that poor project scope description had a negative effect on the proper and efficient planning of project resources. Finally, the study revealed that poor project procurement management led to inadequate resource availability hence affecting the project schedule due to lack of resources as subcontractors could not proceed with the projects in the absence of necessary materials. The study recommended organizations to invest more resources in ensuring that various factors that impend the successful implementation of the telecommunication tower projects are known, as well as invest in Research and Development and project managers to ensure comprehensive project planning and evaluation before the project is initiated. This would also help ensuring that various challenges that affect the project implementation process at various stages of project’s implementation are mitigated.

The cost management of civil and agro-industrial construction project in the scope of information model

The necessary conditions for the existence of an effective cost management system of investment and construction projects are established in the article. Stated aim of the study is to develop methodological provisions of the cost engineering using information modeling technologies. The methodological blocks for parameterization, goal-setting and algorithmization of the information model of an investment and construction project are developed by the author. A list of aggregative cost parameters and an aggregative cost function of an investment and construction project, which is based on aggregative cost parameters, are presented. The processes of budgeting, control and managerial decision-making were considered by the author as functional blocks. The tasks of project budgeting in the scope of an information model, the comprehensive budget model of an investment and construction project and its system parameterization are presented in the article. The main provisions of project cost control and a list of basic cost indicators for control purposes are considered. The requirements of information modeling compatibility with the current subject activity and other software are determined. The author has developed the main provisions of project change management in the scope of information model and recommendations for rational making management decision. An algorithm for a decision-making regarding the realization of an investment and construction project is presented. The prospects of adaptive management of investment and construction projects particularly cost is determined and the vector model of the project behavior under the management action is developed. The main customer requirements to the information model of the investment and construction project are presented. The advantages of using the 5D model in the cost management system for the implementation of an investment and construction project are revealed.

Digital Application of Construction Project Cost Risk Control and Management Based on BIM Technology

Abstract The core objective of this study is to explore the application of BIM technology in the whole process of cost management of construction projects and to assess the project risk. The study covers the key stages of project planning, design, transaction and construction, and focuses on analyzing the cost management process of investment decision, design estimate, transaction and construction. Through questionnaire surveys and expert interviews with 72 valid samples, this study collects data on green building and analyzes the quality of the risk assessment data. Through questionnaire survey and expert interviews with 72 good samples, this study collects data on green building and analyzes the quality of the risk assessment data. In establishing the BIM-based project cost risk model, the study analyzes the management elements of BIM and IPD in detail, including the quantification of technical and management components. three case projects show that the application of BIM and IPD technologies in different projects has different focuses, and produces other management effects. for example, the number of engineering changes (e.g., the number of changes to the project) exhibited by the project B For example, the number of project changes (NCO) is 35, the cost change rate (COP) is 0.93%, the duration change rate (DCP) is −10.25%, and the number of contract negotiations (NRFI) is 6. The risk evaluation model is applied in a mixed-use project in Xiamen, China, and the results of the simulation experiments show that the method is effective in realizing the risk assessment of the construction project, and the clustered nature of the output features is good. The average value of the risk fuzzy variable is 0.576, and the minimum value is 0.192.

Time series-based Project Cost Forecasting Framework

Current inflation rates have significantly been increasing construction project costs globally. Thus, it is crucial to consider potential inflationary trends when estimating the cost at completion of prolonged projects. However, the absence of literature providing guidance on analyzing inflation trends and adjusting the ongoing project cost performance factor is a gap that needs filling. This study proposes a framework for estimating ongoing project costs based on trend and seasonality analysis of the project cost performance through the Holt-Winters method. The proposed framework also incorporates the estimation of project completion time and is applied to a real case study to assess its efficacy. The results are compared with the ones obtained through pre-existing index-based methods. This paper seeks to improve the accuracy of project cost estimation and management in challenging and uncertain economic environments by providing an alternative to the traditional cost at completion forecasting approach.

Pre-settlement audit in project cost management based on cloud computing

Pre-settlement audit in project cost management based on cloud computing

The Exploration of the Application and Management of Project Cost in Smart Buildings Using BIM Technology

In recent years, the slow development of engineering construction management in China has been attributed to outdated management models and low level of informatization. To address the deficiencies in project cost management, relevant departments have proposed the application of BIM technology. BIM technology encompasses a wide range of areas, including planning, construction processes, and cost management. It enables the simulation of these processes to create dynamic real-time building models. Additionally, BIM technology facilitates the rapid transmission of various information during the construction process, thereby improving the overall efficiency of the construction project. Information technology has become ubiquitous in people’s daily lives, and this foundation has led to the emergence of smart buildings. The operation and development of smart building projects require effective project cost management. Accurate cost estimation can help construction enterprises effectively control project costs and increase economic benefits. However, many companies still rely on traditional methods such as manual measurement based on drawings, bill of quantities, or engineering rates, which often lead to calculation errors. The application of BIM technology in project cost management can help alleviate this problem.

A trapezoidal intuitionistic fuzzy optimization approach for crashing a budget constrained project

While the classical fuzzy applications have gained popularity in many different areas, intuitionistic fuzzy set theory emerged as an advancement to better identify various complex circumstances such as the hesitancy of a decision maker under uncertainty. In this study, we propose a project scheduling model in which the allocated budget for crashing is treated as an intuitionistic fuzzy number. With the intuitionistic fuzzy approach, the uncertainty inherent in the project completion time as well as the hesitancy of a decision maker in using the budget amount are integrated into decision making process. The proposed model numerically provides more information than that of the classical ones and better represents the complexity of decision making related to time and cost in project management. Decision makers are provided not only with an optimal schedule but also with a determined degree of satisfaction/dissatisfaction related to the budget and project completion time. Our experimental results show that the decision makers can substantially save money with some delays in the project completion time. Thus, a broader perspective encompassing the satisfaction/dissatisfaction level of a decision maker is presented to schedule a project under uncertain conditions.

Project Cost Management and Performance of National Housing Corporation Projects in Kenya.

Projects from government give recipients or beneficiaries an exceptional premium, success of a project is not a time activity, success of a project must be conducted within the scope and also sufficient financial support should be in place. This includes ensuring and involving all stakeholders. The purpose of the study was to assess the relationship between project cost management and performance of National Housing Corporation projects in Kenya. The study was guided by general system theory. The study adopted positivism research philosophy and explanatory research design was used. The target population of the study was 425 projects of National Housing Corporation Projects from 2013 to 2020 and this was our unit of observation; a simple random sampling was used to select 206 respondents which was our unit of analysis. Primary data was collected using structured self –administered questionnaire while secondary data was collected from publications, annual reports, books, researches dissertations and the internet. Data collection procedure was done using drop and pick method. Data analysis was done using Statistical Package for Social Science (SPSS) version 28 software and descriptive and inferential statistics analysis presented in form of tables. The study was confirmed in National housing corporation projects in all the 47 county governments of Kenya. The findings of the study established that project cost management significantly predicts performance of national housing corporation project in Kenya. Specifically, the findings of the study established that project cost management had a positive correlation on performance of National Housing Corporation Projects in Kenya. The study supports the current theories related to the study. The study recommends National Housing Corporation should enhance adoption of project cost management so that performance of projects to be improved and this will go a long way in ensuring that there is improved performance of National Housing Corporation Projects in Kenya

Intelligent Decision Support System for Building Project Management Based on Artificial Intelligence

With the deepening of research on artificial intelligence (AI) technology in the field of computer science and the improvement of its social influence, the effective combination of AI technology and engineering project management practice has become a hot topic of discussion in the field of engineering project management. In the application research of AI in engineering project management, most of them use data-driven models to solve project management problems, improve data insight and improve the speed and quality of project management decision-making. Decision support systems have been developed on the basis of management information systems, but they have rarely been successfully applied in project management. The decision support system based on data warehouse is a new level of development in decision support systems, providing an effective way for projects to achieve real-time decision-making, thereby achieving synchronous, integrated, and optimized dynamic management of project progress, cost and function, and improving the timeliness and scientificity of decision-making. Therefore, this article proposes the theoretical framework and architecture of a construction project decision support system based on data warehousing. Then, this article proposes a deep belief network (DBN) evaluation method to evaluate the performance of the system, and the results show that the proposed method has superior performance.

Perancangan Sistem Informasi Manajemen Biaya Proyek Menggunakan Metode Earned Value Management pada PT. Kaltacitra Utama Berbasis Web

The effectiveness of project cost management has become a primary concern in the construction industry. Traditional constraints in project cost monitoring necessitate a solution to enhance efficiency, transparency, and accuracy in management. This research aims to introduce a web-based project cost management information system that focuses on the application of the Earned Value Management (EVM) method. By employing a web-based system development approach using the Earned Value Management (EVM) method to accurately monitor project costs and performance. The utilization of web technology enables real-time access for stakeholders, facilitating more timely monitoring and evaluation. The implementation of this system has made a positive contribution to project cost management at PT. Kalta Citra Utama. Testing conducted demonstrates increased real-time transparency and accuracy in project cost information, providing better support for managerial decision-making. Implementing a web-based project cost management information system with the Earned Value Management (EVM) method at PT. Kalta Citra Utama will prove to enhance the efficiency and accuracy of project cost management. This demonstrates significant potential in optimizing project management practices in the construction industry.

Internal Stakeholder Management in ZESCO Distribution Projects

The study reported in this paper investigated internal stakeholder management in ZESCO distribution projects, recognizing the influence of stakeholders on both project performance and success. The objectives of the study were to: find out factors that influence stakeholder management on ZESCO distribution projects; establish the degree of influence of stakeholder engagement on the performance of ZESCO distribution projects; determine the impact of stakeholder mapping on the performance of ZESCO distribution projects; and describe the relationship between stakeholder management and the performance of ZESCO distribution projects. The objectives were achieved by employing a mixed method research approach, incorporating both qualitative and quantitative methods. The study sample encompassed ZESCO employees engaged in various distribution projects, and data was gathered through interviews and questionnaires. The findings underscored the critical role of effective stakeholder mapping, engagement and management in the success of ZESCO distribution projects. It was established that addressing internal stakeholders’ concerns and proper engagement positively influences project performance. Additionally, it was established that engaging internal stakeholders at various project stages improves project delivery. The findings also indicated that internal stakeholder mapping is valuable for project duration, cost management, environmental considerations, and conflict resolution.