Construction Project Cost Management Research Articles

Analysis of Full Lifecycle Cost Management of Construction Projects in the Construction Phase

The purpose of this article is to conduct an in-depth analysis of the comprehensive cost management of engineering construction projects during the construction phase, discussing its significance and application in project management. Through an introduction outlining the research background and objectives, the concept, role, as well as relevant theories and methods of comprehensive cost management throughout the project lifecycle are introduced. Subsequently, a detailed presentation of the main aspects of comprehensive cost management during the construction phase is provided, including the budgeting stage, contract stage, implementation stage, and closing stage. This is followed by an analysis of the key factors that influence comprehensive cost management, covering both internal and external factors. Finally, optimization and improvement strategies are suggested, along with a discussion of future research directions and development trends.

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.

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.

A Review - Factors Affecting on Time, Cost and Quality of Construction

Abstract: The primary goal of this study is to assess and explore time, cost, and quality management within the construction industry. The purpose of the study is to identify factors that impact time, cost, and quality management in construction projects. Quality stands out as a crucial aspect of all projects, and the success of construction projects hinges significantly on the performance of quality. However, accomplishing this objective is undeniably a challenging task. This study specifically investigates the factors that influence the control of cost and time in construction projects. The aim is to propose recommendations that can assist stakeholders in achieving enhanced cost and time performance in construction projects. The study acknowledges the intricate nature of balancing these key elements and strives to contribute valuable insights for improving overall project outcomes in the construction industry. This study is limited to the perspective of an appropriate sample of professionals in the construction industry. The data collection method involves the use of questionnaires and interviews, which will be subject to descriptive statistical analysis utilizing percentages, mean scores, and frequency of collected data. The primary factors influencing time, cost, and quality in a construction project were identified as planned and scheduled deficiencies, fraudulent methods, kickbacks, and the absence of clear evaluation standards. The research aims to scrutinize the factors that have both positive and adverse effects on construction projects. The study recommends that the construction team work diligently to ensure effective management of time, cost, and quality in construction projects. The objective of this study is to analyze how those involved in project teams perceive time, cost, and quality management on construction projects. Conclusions are drawn, and recommendations are made regarding time, cost, and quality management estimates for construction projects. In the construction industry, the concept of risk management is a less popular technique. There are three main stages in the systematic approach to risk management in the construction industry. A questionnaire, developed based on identified factors, was used to gather the opinions of construction experts. Quality is a critical aspect of any project, especially in construction. The success of construction projects is largely determined by the quality of work. Unfortunately, the construction industry is facing quality issues that result in ineffective and inefficient projects, leading to cost overruns, delays, and excessive rework. To address this issue, a research study was conducted to examine the factors that have positive and negative impacts on construction projects. A questionnaire was developed to gather feedback from construction experts, and statistical analysis tools such as chisquare and weighted mean method (WMM) were used to rank the significance of these factors. The definition of quality can vary depending on the perspective of those defining it. Some see it as meeting specific requirements, while others view it as delivering value for the price paid. For construction companies, quality is about satisfying customers and fulfilling their needs while staying within budget. Quality is an important factor in construction projects, as it can lead to cost overruns and delays. Quality control (QC) and quality assurance systems are established to meet specific requirements. In the construction industry, QC can be seen as achieving client satisfaction, managing costs, and allowing enough time to achieve the desired level of quality. An international standard organization (ISO) has developed a quality assurance system to improve quality and address quality-related issues. The ISO 9001 series has been created to apply to all types of organizations.

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.

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.

Applicability of electronic document management system (EDMS) for the cost management of mega construction projects in Sri Lanka

Purpose Documentation plays a key role in navigating the costs of construction projects. Traditional document management systems (TDMS) used in developing countries, however, hinder the achievement of expected cost targets. Although the electronic document management system (EDMS) has been implemented to improve documentation, the Sri Lankan construction industry has failed to effectively adapt to it. Hence, this study aims to provide strategies for the effective application of EDMS to the cost management of Sri Lankan mega construction projects. Design/methodology/approach This study uses a qualitative approach followed by 12 semi-structured expert interviews. Quantity surveying experts were selected through judgemental sampling. Manual content analysis was used to analyse the data. Findings The EDMS is more suitable for megaprojects than traditional methods of documentation in terms of functionality, neutrality, interoperability, space, reversibility and delivery speed. However, there are contradictory views about cost and security. Furthermore, five transitional challenges of EDMS have been identified under the three key themes of cost, stakeholder perception and technical difficulties. Four reasons were also identified as causing these five challenges. Seven suggestions were made to deal with these transitional challenges and three key feasible solutions for the Sri Lankan construction industry regarding the EDMS were identified. Development of Sri Lankan software with low initial cost was highlighted as the most feasible solution. Originality/value This is a novel study to investigate the applicability of EDMS to cost management mechanisms of megaprojects in Sri Lanka. The findings reveal transitional challenges and appropriate feasible solutions for EDMS adaptation. This can be applied to the cost management of megaprojects in other developing countries as well.

Cost Management and Risk Control of Construction Projects under the Market Economy

With the continuous development of construction enterprises, the cost management of engineering projects has received more attention as a factor that directly affects the profits of enterprises. Under the deployment of the market economy, which is closely related to it, the construction cost often presents a certain degree of uncertainty.In the face of this uncertainty, properly managing risks and optimizing cost management strategies have become an effective way to maximize the benefits of construction companies. Starting from the problems existing in the cost management of construction enterprises, this paper puts forward some suggestions for their risk control and cost management.

Retracted: Construction Project Cost Management and Control System Based on Big Data

Retracted: Construction Project Cost Management and Control System Based on Big Data

Research on the application of BIM technology in the whole process cost management of construction projects

This paper conducts an in-depth study on the application of BIM technology in the whole process cost management of construction projects. Firstly, the concept and characteristics of BIM technology and the application of BIM technology in construction engineering are introduced. Then the application of BIM technology in the whole process cost management of construction projects is analyzed from three stages: design, construction and operation. The research results show that the application of BIM technology in the whole process cost management of construction projects has greater advantages, which can improve project efficiency, reduce costs and improve the quality of construction projects.

The Role of 5D Building Information Modelling in Construction Project Cost Management: An Overview and Future Directions

The significance of 5D BIM in construction project cost management is increasing as the construction industry has experienced significant technological advancements. Despite the growing importance of 5D BIM in construction project cost management, there is still a lack of comprehensive understanding regarding its full potential and the necessary skills and training required by professionals in utilizing this technology. Thus, there is a need to explore the benefits, challenges, and best practices of implementing 5D BIM in cost management, as well as the role of professionals in utilizing it for optimal results. This paper aims to address this knowledge gap through a systematic literature review and provide insights into the future of 5D BIM in construction project cost management. The paper discusses the benefits, challenges, and best practices of implementing 5D BIM in cost management. Furthermore, it examines the role of professionals in utilising 5D BIM for cost management, including the necessary skills, training, and team-building strategies. Additionally, the paper delves into the future of 5D BIM in cost management, exploring emerging trends and technological advancements. The conclusion summarises the key points and highlights the insights into future research directions.

AN INVESTIGATION OF THE IMPACT OF QUALITY AND COST MANAGEMENT ON PROJECT PERFORMANCE IN THE CONSTRUCTION INDUSTRY IN NIGERIA

The importance of quality and cost management in construction projects cannot be overstated as it significantly influences project outcomes. This research is aimed to examine the degree of quality and cost management implementation, assess its impact on construction project performance, and evaluate the factors that affect its implementation in Nigeria's construction industry. Quantitative research methods were employed, using a questionnaire with 68 variables and 15 constructs, utilizing a five-point Likert scale. Data was collected from 260 respondents, and 242 valid responses were used for analysis, employing Microsoft Excel, SPSS, and LISREL. Reliability and validity tests, including Crombach's alpha, composite reliability, and average variance extracted, were conducted for all constructs, establishing their suitability for further analysis. The exploratory factor analysis in SPSS revealed inadequate implementation of quality and cost management. This finding aligned with the confirmatory factor analysis results, which indicated a significant impact of the factors influencing quality and cost management implementation. The structural equation model (SEM) analysis, used to assess the impact of quality and cost management on construction project performance, demonstrated a high level of impact, with the strongest correlation observed between project cost monitoring and control and construction phase performance. Therefore, urgent measures are needed from industry stakeholders to address the factors hindering the effective implementation of quality and cost management, aiming to enhance project performance.

Factors Influencing Oil and Gas Project Delivery in Nigeria: Cost Management Perspective

Overtime, cost management of construction projects in the Nigeria oil and gas sector has been branded inadequate with critical stakeholders standing aloof from offering requisite expertise to achieve efficiency. Based on pertinent lack of critical literature narrative about the practice of cost management in the oil and gas sector generally and in Nigeria specifically, this study evaluated the issues inhibiting cost management of oil refinery. Using a purposive sample size of 36 construction professionals in the oil and gas sector obtained through snowballing in Rivers state, Nigeria, structured questionnaire was employed to collect data that were analysed using mean item score and Chi-Square. The result revealed that issues dealing with low education, skills, estimating efficiency, non-involvement of core cost management professionals and change in scope as critical issues for affecting the efficiency of cost management in oil refinery construction projects. All the 25 factors evaluated were significant mean item scores (3.01 - 3.94) and the null hypothesis was rejected (p-values < 0.000) to show the consistency of the mean ranking. The study buttresses that inadequate cost management practice in the Nigerian oil and gas sector is due to this range of factors. Recommendations towards improving the state of cost management practice in the sector are directed towards the need to improve the validated barriers as precursors of inefficiencies in the sector.

Use of Risk Analysis Tools in Investment Construction Project Cost Management

The paper examines the possibilities of improving the accuracy of estimating the value of an investment and construction project based on various analysis and evaluation tools. Accurate estimates can be achieved using the Project Value Model at all stages of the project lifecycle. The stages of estimating the cost of an investment and construction project are considered, including costing, i.e. determining the costs of individual works depending on the calculation of the volume of work and pricing — determining the total cost of the project taking into account cost, profit and contingency provisions. The work carried out a comparative analysis of the methods of estimating the cost of the project: methods of high-level assessment, analog and method of parametric estimates, detailed assessment of the project costs, the use of which should be carried out iteratively. It is noted that risk management tools should be considered in combination with the project cost assessment due to the dependence of the goal in identifying and assessing risks with maximum performance and lowest cost. The article studied various approaches to assessment, in particular: estimating the cost of the project at the pre-investment stage in the form of a rough (approximate) value; estimate the project cost at the business planning stage as the estimated value of the cost justification Project Cost Estimation in the Process of Costing by Activity Type — Budget Cost Assessment Estimate the final planned project cost to be included in the project budget — accurately estimate the project cost. The article proposes the use of various tools and methods of risk analysis at the stages of the life cycle of an investment and construction project.

A Review on Implementing Lean Construction Technique in Construction Industry

In this literature review the concept of lean construction and its impact on time, cost, and resource management in construction projects are explored. The study examines various research articles and academic papers in the field of lean construction to identify the primary themes and findings. The review indicates that lean construction practices can have a positive effect on time, cost, and resource management by reducing waste, enhancing communication, and encouraging collaboration among stakeholders. The implementation of lean construction principles has been demonstrated to lead to shorter project durations, lower costs, and better resource allocation. However, the review also acknowledges the challenges associated with implementing lean construction in the construction industry, such as resistance to change, limited knowledge and understanding, and difficulties in assessing its impacts. In conclusion, this literature review concludes that lean construction has the potential to enhance time, cost, and resource management in construction projects, and proposes the need for further research to overcome the challenges and facilitate its adoption.

Adaptability of enterprise resource planning (ERP) systems for cost management of building construction projects in Sri Lanka

PurposeEnterprise resource planning (ERP) systems that are equipped with numerous features and functionalities help to improve the profitability of construction corporations around the world through enhancing the efficiency of the functions related to cost management. Thus, the purpose of this study was to investigate the applicability of ERP systems for cost management of building construction projects in Sri Lanka.Design/methodology/approachA qualitative technique was used in this study, which comprised two-round Delphi-based semistructured interviews. Purposive sampling was used to determine the interviewees. Content analysis was used to evaluate the collected data.FindingsThe findings of this study identified the ERP system as a strategic tool for gaining a competitive advantage for an organization while confirming 14 uses of ERP systems and 16 stages of the cost management process. Eighteen issues were finalized at the end of the interview rounds while categorizing the suitable ERP applications at each stage of the cost management process.Originality/valueEven though there are numerous distinct studies conducted on cost management and ERP systems, there has been a lack of studies conducted on the synergy between these two areas that can be adapted for the building projects in the Sri Lankan context. Therefore, the findings of this study can bring a new paradigm to the Sri Lankan construction sector by influencing the adaption of correct ERP systems at numerous project stages by providing a competitive edge.

Construction cost prediction system based on Random Forest optimized by the Bird Swarm Algorithm.

Predicting construction costs often involves disadvantages, such as low prediction accuracy, poor promotion value and unfavorable efficiency, owing to the complex composition of construction projects, a large number of personnel, long working periods and high levels of uncertainty. To address these concerns, a prediction index system and a prediction model were developed. First, the factors influencing construction cost were first identified, a prediction index system including 14 secondary indexes was constructed and the methods of obtaining data were presented elaborately. A prediction model based on the Random Forest (RF) algorithm was then constructed. Bird Swarm Algorithm (BSA) was used to optimize RF parameters and thereby avoid the effect of the random selection of RF parameters on prediction accuracy. Finally, the engineering data of a construction company in Xinyu, China were selected as a case study. The case study showed that the maximum relative error of the proposed model was only 1.24%, which met the requirements of engineering practice. For the selected cases, the minimum prediction index system that met the requirement of prediction accuracy included 11 secondary indexes. Compared with classical metaheuristic optimization algorithms (Particle Swarm Optimization, Genetic Algorithms, Tabu Search, Simulated Annealing, Ant Colony Optimization, Differential Evolution and Artificial Fish School), BSA could more quickly determine the optimal combination of calculation parameters, on average. Compared with the classical and latest forecasting methods (Back Propagation Neural Network, Support Vector Machines, Stacked Auto-Encoders and Extreme Learning Machine), the proposed model exhibited higher forecasting accuracy and efficiency. The prediction model proposed in this study could better support the prediction of construction cost, and the prediction results provided a basis for optimizing the cost management of construction projects.

Building Engineering Cost Prediction Model Based on TSNE and Improved Grey Correlation Algorithm

With the development of digitalization in the construction industry, the complexity of construction projects is increasing. In response to the widely valued cost and quality management of construction projects, improved algorithms based on machine vision learning can effectively cope with the increasingly complex cost prediction of construction projects. In the entire model design, how to complete the selection and processing of key indicators for construction projects is currently a key issue that needs to be urgently solved. This article studied the use of TSNE (T-Distributed Stochastic Neighbor Embedding) and improved grey correlation algorithm to design a cost prediction model, aiming to improve the prediction accuracy of construction project costs and reduce system prediction time. This article analyzed the cost index system and simulation experiments of construction projects, applied machine learning based TSNE and improved grey correlation algorithm, combined index dimensionality reduction processing and construction project unit test set samples, and discussed the following conclusions based on the data results: In the context of intelligent large-scale infrastructure, the construction project cost prediction model using TSNE and improved grey correlation algorithm had higher prediction accuracy than traditional prediction methods in all construction project samples, with an average improvement of 5.1%. At the same time, in terms of model prediction efficiency, the improved algorithm was better than traditional prediction methods, with an average improvement of 12.75%. This indicated that the construction project cost prediction model based on TSNE and improved grey correlation algorithm has a relatively good prediction effect overall.

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.&#x0D; 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.&#x0D; 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.&#x0D; 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.

Cost Management and Performance Impact Analysis in Large Real Estate Construction Projects: Take Mogadi Real Estate Company as An Example

Cost Management and Performance Impact Analysis in Large Real Estate Construction Projects: Take Mogadi Real Estate Company as An Example