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Measuring the costs and benefits of information technology in construction

ROGER FLANAGAN (Department of Construction Management & Engineering, The University of Reading, Whiteknights, Reading, Berkshire RG6 6AW, UK)
LAURENCE MARSH (Department of Construction Management & Engineering, The University of Reading, Whiteknights, Reading, Berkshire RG6 6AW, UK)

Engineering, Construction and Architectural Management

ISSN: 0969-9988

Article publication date: 1 April 2000

Abstract

Information technology (IT) has been widely applied across many economic sectors in order to increase competitiveness and reduce costs. This paper identifies that uptake of IT within construction is low. It is argued that significant barriers preventing construction organizations from investing in IT include uncertainty concerning the identification and measurement of benefits associated with applications. In particular, it is argued that difficulties in quantifying benefits associated with improved information availability and decision making prevent effective IT cost/benefit analysis. Existing approaches to evaluating IT within construction are reviewed. A framework is presented which identifies metrics by which IT impacts both management and operational processes within construction in order to deliver value. An evaluation methodology tailored to one specific IT application, high‐density bar coding in maintenance management, is presented to illustrate the quantification of both the costs and benefits of applying IT.

Keywords

Citation

FLANAGAN, R. and MARSH, L. (2000), "Measuring the costs and benefits of information technology in construction", Engineering, Construction and Architectural Management, Vol. 7 No. 4, pp. 423-435. https://doi.org/10.1108/eb021164

Publisher

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MCB UP Ltd

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