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The purpose of the paper is 1) to address the importance of contingency at the right level when defining project control baseline, including cost reserves / “room to manoeuvre” and 2) present proactive uncertainty management as a regime to ensure cost effective management of project reserves and contribute to project success.

The paper is a combination of literature study and quantitative research on how contingency develops during the lifetime of a case project. The investigation into the case project includes document study into quantitative material from the case project. The combination of empirical material and theory makes the discussion robust.

Unrealistic low cost uncertainty will lead to unrealistic low contingency. The case study from a Norwegian mega project shows a contingency of 15 per cent in addition to expected costs. The case study shows that by continuous opportunity management and risk reduction, the needs for management reserves are systematically reduced and the contingency is controlled.

This research is limited to one case study. A higher number of cases are necessary to generalise the findings. However, the authors would claim that the systematic mapping of need for management reserve towards the project contingency, and a continuous uncertainty management system will help to obtain cost effective management. The findings from the case study could be applied on similar cases.

The case study shows a way of setting contingencies and managing contingencies through systematic uncertainty management.

Improved management of project provisions will increase the value of future projects.

Implementing building information modeling (BIM) in construction projects offers many benefits. However, the use of BIM in project cost management is still limited. This study aims to review the current trends in the application of BIM in project cost management.

This study systematically reviews the literature on the application of BIM in project cost management. A total of 46 related articles were identified and analyzed using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses method.

Eighteen approaches to applying BIM in project cost management were identified. The approaches can be grouped into cost control and cost estimation. Also, BIM can be applied independently or integrated with other techniques. The integrated approaches for cost control include integration with genetic algorithms, Monte Carlo simulation, lean construction, integrated project delivery, neural network and value engineering. On the contrary, integrated approaches for cost estimation include integration with cost-plus pricing, discrepancy analysis, construction progress curves, estimation standards, algorithms, declarative mappings, life cycle sustainability assessment, ontology, Web-based frameworks and structured query language.

To the best of the authors’ knowledge, this study is the first to systematically review prior literature on the application of BIM in project cost management. As a result, the study provides a comprehensive understanding of the current state of the art and fills the literature gap. Researchers and industry professionals can use the study findings to increase the benefits of implementing BIM in construction projects.

Looks at how the construction industry’s demand for better management of quality in construction projects is becoming increasingly important for every project participant. Says that one important aspect of a quality improvement programme is the cost of quality which is relatively new to participants of construction projects. Describes the results of a survey among professionals in the construction industry on the issues relating to the management of quality and especially its cost. Shows that results of the investigation indicate, among others, the importance of client role in determining the quality of the end product; the usefulness of information on non‐conformances in preventing failures and improving a process; problems with ground conditions; how most failure costs can be eliminated; how the contractor’s role should include anticipating of problems; and how information on the cost of failures can be an indicator of weaknesses and assist in preventing the same failure in the future.

In the continuing endeavour to work towards ever better management, experience plays a crucial role. We learn from success, but we can learn much more from failure. Further, it is far better and cheaper when we learn from other people′s failures rather than our own. This monograph assesses the requirements of project management in relation to industrial projects, illustrating the factors that can result in failure by means of a series of case studies of completed and abandoned projects worldwide that have failed in one way or another. The key roles played by project planning and project cost control in meeting and overcoming the practical problems in the management of industrial projects are examined in detail. In conclusion the lessons that can be learned are evaluated and presented, so that we may listen and learn – if only we will.

Traditional cost management systems adopted by construction firms have many problems, which are widely discussed in the literature: the information provided by them is usually too late, and tends to be too aggregated and too distorted to be relevant for production management. The main objective of this research work is to propose a project cost planning and control model for construction firms. This model aims to support the development of production management systems, in which cost management and production planning and control can be gradually integrated, in order to overcome the existing limitations of cost accounting systems. The scope of the model was limited to building projects carried out by small and medium sized companies, involved in both product development and production. The development of the model was based on the literature review and also on the results of nine empirical studies conducted in four different Brazilian construction firms. The model suggests the integrated application of three fairly well known cost management techniques: operational cost estimating, S‐curves and target costing. By using this set of tools, it is expected that cost management will become more proactive, and able to deal with the dynamic, uncertain and complex construction environment that exists in most projects. The model was partially tested in two case studies, in which it provided key information for supporting decision making related to design, production planning and contracts with suppliers.

New management techniques such as ‘just‐in‐time’, ‘lean manufacturing’ and ‘Six Sigma’ allow management accountants to shift their focus from the management and control of production processes to the management of strategic issues. This paradigm shift resulted from shorter product life cycles, due to technological advances and a more competitive business environment. Recent revisions to the International Accounting Standards which are particularly supportive of life cycle costing and project management are likely to increase the focus on strategic management accounting further. This article describes developments in management accounting and the recent convergence of financial reporting in terms of International Accounting Standards with strategic management accounting and project management techniques. Strategic management accounting (particularly life cycle costing) involves applying project management techniques and using the calculus of investment to manage the project as a whole. This contrasts with managing only costs and revenues during the manufacturing phase of a project. The article demonstrates that project management techniques and the calculus of investment provide the information needed to account for the value of a project in terms of IAS 38: Intangible Assets. This will ultimately give rise to both improved decision‐making and more relevant financial reporting.

Effective cost performance is a crucial criterion measuring successful project management in public-housing projects. This paper aims to analyse the vital underlying factors surrounding the successful cost management process (CMP) outcomes in public housing projects (PHPs).

The research was conducted in three stages. The first stage consisted of a detailed literature review to document success factors affecting cost performances and management. In stage two, brainstorming sessions were undertaken with construction experts knowledgeable in cost management practices and have been involved in PHPs. These sessions were used to refine those success factors for the PHPs settings and define their criticality with respect to the CMP stages using interpretive ranking process. In stage three, focus group sessions were performed to validate the interrelationships of the contextualised critical success factors.

The top three most critical factors for successful implementation and outcomes at all CMP stages in PHPs settings were found to relate to competencies, team qualities and collaborative practices of the project team. Early contractor involvement and effective construction planning and management also emerged relevant to the process.

Government project departments, project managers and construction organisations (consultants and contractors) need to commit and mandate continuous development of cost management competencies for all professionals engaged in PHPs. Channels supporting team integration and collaborative practices between design and construction teams are required to increase the likelihood of successful project cost management practice and outcomes in PHPs.

The research has developed a factor-process relationship model that can be used to improve and evaluate the efficacy of CMP implementation in PHP settings.

The aim of this paper is to examine the effect of organizational environment on engineering project cost management.

Taking China Railway Engineering Corporation 2nd Bureau (CREC 2nd Bureau for short) as an example, the authors conduct lots of semi‐structured interviews in its group corporation, company limited, two subsidiaries and two project departments, and finally collect textual data which include 30 paragraphs and more than 120,000 words. The authors then encode those interview data step by step for further analysis under the research paradigm of grounded theory.

Based on these encoded data, the paper builds concept, basic categories, main categories, which could be the factors affecting the engineering project cost management, the evidence chain and the complete story clue among these categories. Then finally constructs a theoretical framework called “3S” for short, which is comprised of the organizational structure supporting system, the control procedure supporting system and the social relation supporting system.

Because of the insufficient importance placed on engineering project cost management by academics and few theoretical papers, this paper provides a new method for exploring the engineering project cost management and a theoretical reference for further research.

In this paper, the authors discuss the action mechanism of organizational environment in the engineering project cost management and provide for Chinese construction enterprises more explicit guidance on their cost management practice.

There is little research on determinants of engineering project cost by Chinese scholars, which is mainly shown as normative research. There is no perfect theoretical framework on the determinants of engineering project cost management, which is not beneficial to the knowledge of engineering project cost management and is not comprehensive and in depth enough for academics and practitioners. This paper conducts a field study in CREC 2nd Bureau based on grounded theory. At last, “3S” theoretical framework is established. This paper is embodied in using reality as the accordance, scientifically carding and spreading the theory and translating the practical experience into theory, so that it is beneficial for the engineering project cost management.

The purpose of the work presented here is to assess the cost management practices of civil engineering organisations in Nigeria, with an overall aim of developing a generic cost management process map. The first objective is to compare existing frameworks theoretically to highlight their strengths and weaknesses. The second objective is to use the findings of the first objective to assess or benchmark the developed process map obtained from the multiple cases. The third objective is to compare the generic process map with the traditional building cost management process map to evaluate the strengths and shortcomings of the generic process map, which resulted in conclusions and recommendations made at the end of the research.

Data for the work was collected via semi-structured interviews, review of literature and official documents of the civil engineering organisations visited. To achieve the stated objectives, comparative analysis technique was used to compare existing frameworks on cost management to obtain the basis to benchmark the generic process map. The single case narrative technique was used to present each case; and the cross-case synthesis technique was used to present the multiple cases on each cost management process examined. Then, process maps were deployed to represent the homogeneous sets of civil engineering organisations, out of which the generic process map was developed. Comparative analysis was again deployed to compare the generic process map with the traditional building process map of cost management practice to evaluate the findings.

It was found out that the generic civil engineering process map is not as detailed and effective as the building process map in providing best value for money, accurate early cost estimates, accurate cost certainty and post-contract cost control.

This research study provides an industrial impetus to push for the involvement of more quantity surveyors (QS) as cost management process owners in the procurement of civil engineering projects in Nigeria, hence encouraging government’s efforts in the enforcement of more accurate project cost estimates and promoting the QS’s project-specific advice on capital, operational, maintenance and life cycle costs.

The process of managing the design and construction of a project on behalf of a client may be analysed using project management theory based on a contingency approach. The analysis provided by this approach, whilst useful for understanding the interaction of the parts of the system, the functions of project management and the effectiveness of the organization structure, may be limited by not incorporating an economic explanation of how a project organization structure is chosen. The transaction cost approach to the study of economic organization may provide a theoretical basis for such an explanation. This approach holds that an understanding of transaction cost economizing is central to the study of organizations as it determines whether functions are provided by the market or by hierarchy. This paper seeks to explore the relationship between these two powerful approaches in explaining the structuring and management of project organizations on behalf of clients and to explain the benefits of combining these approaches in furthering construction project management theory.