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Article
Publication date: 23 January 2023

An Thi Hoai Le and Monty Sutrisna

This paper reports the developments of a project cost control system (PCCS) for construction projects to (1) measure its current level of cost control maturity, (2) examine the…

Abstract

Purpose

This paper reports the developments of a project cost control system (PCCS) for construction projects to (1) measure its current level of cost control maturity, (2) examine the relationships between elements within PCCS processes and (3) identify improvement areas.

Design/methodology/approach

This study adopts a mixed approach of descriptive analysis and partial least squares structural equation modelling (PLS-SEM) to measure the current maturity level of PCCS and evaluate the relationships between elements within PCSS to identify improvement areas. Further importance-performance matrix analysis (IPMA) of priority constructs was conducted to improve a target construct and identify the most important areas of specific actions at indicator levels. The results of IPMA revealed the contrast that has the greatest importance on the performance of others so that the recommendations can be made accordingly. Data collected in New Zealand were used to develop the research model.

Findings

This study develops structural and measurement models with the constructs including pre-control, in-control and post-control processes, enablers and their proposed interrelationships. Then, data from survey of 184 experienced project cost control team members reveal that post-control has the lowest maturity or weakest areas in the PCCS. Data analysis facilitated by PLS-SEM confirmed that all the constructs in the structural model have positive and significant relationships with each other and suggested that systematic cost analysis reports, communication, skills and experience, defining roles and responsibilities, and top management's support should be the highest priority for improving the PCCS in a more effective manner.

Originality/value

This study presents one of the earliest attempts to develop and test an integrated model that links sub-processes in PCCS and their enablers. Secondly, this research adds to the construction project management literature by empirically verifying the roles of enablers in enhancing maturity level of PCCS.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 7 November 2016

R. Jayaraman

The purpose of this paper is to reengineer the process of cost management in large projects.

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Abstract

Purpose

The purpose of this paper is to reengineer the process of cost management in large projects.

Design/methodology/approach

Considering the fact most large projects overrun their budgets because of the long time period needed to completion, it was decided to reengineer the cost management. Accordingly costs allocated to packages were reviewed and changed on a dynamic basis. Different types of contingencies were provided. Concepts of package contingency and project contingency were introduced. These were based on the project buffer and feeding buffer concepts popularised by Eliyahu Goldratt.

Findings

The re-engineered method of cost control worked well and yielded better than expected results, leading to the setting up of a new world record in the completion time for setting up a million tonnes per annum continuous, tandem cold rolling mill to roll steel sheets.

Research limitations/implications

In view of the total success of the reengineered approach, which was tested out on a large project over three years, it is felt that other projects could also try out this technique, especially since it is along the lines proposed by Eliyahu Goldratt who is an authority on project management. However the success can be better understood if the results of the testing become available. To that extent the contents of the present paper have limitations.

Practical implications

Large projects can deploy the methodology and complete their projects on time and under budget.

Social implications

The reengineering of the cost management was done primarily with a view to complete projects under budget. Since many governments spend many billions of dollars on publicly funded projects for the welfare of citizens, the use of this technique could have a salutary effect on the cost.

Originality/value

The method was innovated in the company by the author’s team and deployed in a live project over four years for the first time to achieve world-class results.

Article
Publication date: 29 February 2020

Sahar Jawad and Ann Ledwith

The purpose of this study is to analyze the interaction between the enablers and barriers to successful project control system (PCS) implementation in petroleum and chemical…

Abstract

Purpose

The purpose of this study is to analyze the interaction between the enablers and barriers to successful project control system (PCS) implementation in petroleum and chemical projects and to provide a knowledge-based foundation for the evaluation of the dominant factors of PCS success.

Design/methodology/approach

An integrated approach of interpretive structural modeling (ISM) and cross-impact matrix multiplication applied to classification (Matrice d’Impacts Croisés Multiplication Appliquée à un Classement) were used. An expert group of industry professionals and academics was consulted at the initial stage as an input for the ISM methodology to explore the contextual relationships among the critical factors to PCS implementation in petroleum and chemical projects.

Findings

This study identifies three dominants enablers of PCS success: the technical skills of the project controller; explicitly defined roles of project team members; and an accurate work breakdown structure. Additionally, six dominant barriers to successful PCS implementation have been identified: lack of standard processes, vague contract deliverables, unclear project goals, unclear project milestones, disparate control system between owner and contractor and lack of information communication. Organizations in the petroleum and chemical sectors should put more effort into the development of these factors to optimize the implementation of PCS.

Research limitations/implications

A limitation of this current study is its focus on the petroleum and chemical sectors in Saudi Arabia. It is expected that the findings will have wider applicability, but further studies in different sectors and geographic regions should be undertaken to validate this assumption. In this study, a second validation expert group was used to ensure the reliability of the results as much as was possible. However, further studies could be completed to evaluate alternate classification schemes and to test the robustness of the expert consensus and techniques reported, in this study, including an increased number of experts.

Practical implications

The present study makes some practical contributions to the project delivery process. It provides different project stakeholders with a better understanding of the factors that improve PCS outcomes and helps project owners and contractors to evaluate the PCS used by both parties to understand how they might be aligned for successful project execution.

Originality/value

The successful implementation of PCS is a key contributor to the total project delivery process. Although there is growing attention on PCS as a critical project management tool in petroleum and chemical projects, the literature in project management shows that PCS implementation has not been taken up as much as originally anticipated. This paper will address this gap by focusing on improving the take-up of strategical PCS implementation through the identification of six dominant enablers and nine dominant barriers as driver factors of success.

Article
Publication date: 1 February 1995

PAUL S.H. POH and R. MALCOLM W. HORNER

A rich variety of cost models is used in the world's construction industries. In countries exposed to British practice, the use of traditional bills of quantities is common…

Abstract

A rich variety of cost models is used in the world's construction industries. In countries exposed to British practice, the use of traditional bills of quantities is common. Elsewhere, bills of quantities may not be used at all. This paper briefly reviews the nature and purpose of cost models both in the UK and in south‐east Asia. It explains how the principle of cost‐significance can lead to a simplified method of measurement which is both well‐structured and sufficiently accurate ‐ a half‐way house between traditional bills and a single lump sum. By way of example, the derivation of a cost‐significant model for student hostels in Singapore is presented. Representing no more than a first step, the problems still to be resolved are outlined. Nevertheless, the techniques seem to hold much promise for the future, and others are encouraged to explore where they might most effectively be applied.

Details

Engineering, Construction and Architectural Management, vol. 2 no. 2
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 25 July 2008

Olubola Babalola and David Abiodun Adesanya

Electrical services contribute a substantial percentage of total construction cost of any particular project. It is essential for estimators to have a detailed knowledge of the…

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Abstract

Purpose

Electrical services contribute a substantial percentage of total construction cost of any particular project. It is essential for estimators to have a detailed knowledge of the factors that affect the incorporation of electrical services cost into the overall building project cost. The overall aim of the study that formed the basis for this paper therefore was to investigate the factors that influence cost estimating of electrical services project.

Design/methodology/approach

The study was carried out based on questionnaire survey of 225 organizations that are involved in cost estimating of electrical services projects in Nigeria. A total of 158 questionnaires out of the 163 retrieved were appropriate for analysis. A list of factors potentially influencing cost estimate for electrical services was identified for the respondents to rate. The data collected were analyzed using factor analysis based on principal component analysis and varimax orthogonal rotation.

Findings

The results shows that the factors affecting production of cost estimate for electrical services could be grouped into four principal factors: the most important factor grouping being estimator competence followed by project technicality, economic requirements and contract requirements.

Practical implications

Many factors are considered by practitioners in the preparation of cost estimate for electrical work in construction project development. The paper has listed about 23 factors that are relevant. However, this paper has shown that four principal factors need to be considered as they explain 64 percent of the factors affect cost estimate production for building project's electrical service works.

Originality/value

Review of literature has shown that there is limited empirical research on the factors influencing cost estimate production for electrical services work. The paper has produced an empirical research on the crucial factors that must be taken into account when producing cost estimate for the electrical service projects.

Details

Journal of Financial Management of Property and Construction, vol. 13 no. 3
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 1 January 1996

THOMAS E. UHER

The aim of the paper is to examine attitudes of general contractors operating in the Sydney region to the potential use of probability estimating and databases in cost estimating…

Abstract

The aim of the paper is to examine attitudes of general contractors operating in the Sydney region to the potential use of probability estimating and databases in cost estimating. A sample of 10 large general contractors with a turnover over $100m was selected for the study, which took place in 1993. Responses of the contractors to a standard questionnaire were obtained using face to face interviews. The research described in this paper confirmed the popularity of traditional single value estimating and highlighted the lack of use of probability cost estimating by the general contractors surveyed. The limited availability of client‐prepared bills of quantities for tendering has neither diminished their popularity among bidding contractors nor increased the use of elemental cost planning. Although databases are generally available, subjective judgements of estimators are of greater value in cost estimating. The research has concluded that a change in the estimating paradigm towards probability cost estimating, and the use of databases, are unlikely to occur in the near future.

Details

Engineering, Construction and Architectural Management, vol. 3 no. 1/2
Type: Research Article
ISSN: 0969-9988

Book part
Publication date: 1 November 2007

Irina Farquhar and Alan Sorkin

This study proposes targeted modernization of the Department of Defense (DoD's) Joint Forces Ammunition Logistics information system by implementing the optimized innovative…

Abstract

This study proposes targeted modernization of the Department of Defense (DoD's) Joint Forces Ammunition Logistics information system by implementing the optimized innovative information technology open architecture design and integrating Radio Frequency Identification Device data technologies and real-time optimization and control mechanisms as the critical technology components of the solution. The innovative information technology, which pursues the focused logistics, will be deployed in 36 months at the estimated cost of $568 million in constant dollars. We estimate that the Systems, Applications, Products (SAP)-based enterprise integration solution that the Army currently pursues will cost another $1.5 billion through the year 2014; however, it is unlikely to deliver the intended technical capabilities.

Details

The Value of Innovation: Impact on Health, Life Quality, Safety, and Regulatory Research
Type: Book
ISBN: 978-1-84950-551-2

Article
Publication date: 1 March 2001

K.G.B. Bakewell

Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18;…

18714

Abstract

Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management Volumes 8‐18; Structural Survey Volumes 8‐18.

Details

Structural Survey, vol. 19 no. 3
Type: Research Article
ISSN: 0263-080X

Article
Publication date: 1 September 2001

Index by subjects, compiled by K.G.B. Bakewell covering the following journals: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management…

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Abstract

Index by subjects, compiled by K.G.B. Bakewell covering the following journals: Facilities Volumes 8‐18; Journal of Property Investment & Finance Volumes 8‐18; Property Management Volumes 8‐18; Structural Survey Volumes 8‐18.

Details

Facilities, vol. 19 no. 9
Type: Research Article
ISSN: 0263-2772

Article
Publication date: 1 June 2000

George K. Chako

Briefly reviews previous literature by the author before presenting an original 12 step system integration protocol designed to ensure the success of companies or countries in…

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Abstract

Briefly reviews previous literature by the author before presenting an original 12 step system integration protocol designed to ensure the success of companies or countries in their efforts to develop and market new products. Looks at the issues from different strategic levels such as corporate, international, military and economic. Presents 31 case studies, including the success of Japan in microchips to the failure of Xerox to sell its invention of the Alto personal computer 3 years before Apple: from the success in DNA and Superconductor research to the success of Sunbeam in inventing and marketing food processors: and from the daring invention and production of atomic energy for survival to the successes of sewing machine inventor Howe in co‐operating on patents to compete in markets. Includes 306 questions and answers in order to qualify concepts introduced.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 12 no. 2/3
Type: Research Article
ISSN: 1355-5855

Keywords

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