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Factors affecting the selection of effective cost control techniques in the UK construction industry

Adekunle Sabitu Oyegoke (School of Built Environment, Engineering and Computing, Leeds Beckett University, Leeds, UK)
Robert Powell (School of Built Environment, Engineering and Computing, Leeds Beckett University, Leeds, UK)
Saheed Ajayi (School of Built Environment, Engineering and Computing, Leeds Beckett University, Leeds, UK)
Godawatte Arachchige Gimhan Rathnagee Godawatte (EGIS, Heriot-Watt University, Edinburgh, UK)
Temidayo Akenroye (Faculty of Business and Law, Liverpool John Moores University, Liverpool, UK)

Journal of Financial Management of Property and Construction

ISSN: 1366-4387

Article publication date: 10 May 2021

Issue publication date: 15 June 2022

1340

Abstract

Purpose

This paper aims to identify and analyse the factors affecting the selection of effective cost control techniques in the UK construction industry and assess their importance. The study examines these key areas; the factors that have significant impacts on cost overruns, the most effective cost control techniques and the factors for selecting cost control techniques for a project.

Design/methodology/approach

The study relies on a mixed-method research approach; a qualitative exploration of the most effective cost control techniques and the factors affecting the selection of cost control techniques, followed by a questionnaire survey and follow-up interviews. Relative importance index (RII) is used for ranking the factors.

Findings

The budgeting technique is ranked first with-0.821RII, followed by cost forecasting-0.800RII and cashflow monitoring-00.733RII, as the most effective cost control techniques. On factors that influenced the choice of the techniques used, cost information/cost-related factors are ranked first with-0.611RII, followed by the size of the company-0.509RII and the effectiveness of the technique-0.572RII.

Research limitations/implications

Although the scope of the study was limited to the UK construction industry, the results could be interpreted for critical learning in other developed/developing countries.

Originality/value

Identifying and ranking the factors affecting the selection of effective cost control techniques in the UK construction industry has been the focal point of this study. The study also proposes a simple but effective model which can be used for critical learning on mitigating cost overruns and the effective use of cost control techniques in the construction industry.

Keywords

Citation

Oyegoke, A.S., Powell, R., Ajayi, S., Godawatte, G.A.G.R. and Akenroye, T. (2022), "Factors affecting the selection of effective cost control techniques in the UK construction industry", Journal of Financial Management of Property and Construction, Vol. 27 No. 2, pp. 141-160. https://doi.org/10.1108/JFMPC-07-2020-0050

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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