Alwisy, A; Bouferguene, A and Al-Hussein, M (2020) Framework for target cost modelling in construction projects. International Journal of Construction Management, 20(2), pp. 89-104. ISSN 1562-3599
Abstract
Target costing (TC) is an effective construction management technique that has been proven to enhance project performance through the evaluation of construction component alternatives that satisfy a desired cost. However, current research focusing on the adoption of TC in the construction industry still follows a manual, time-consuming process. Improvement measures are heuristic and rely on the intuition of designers. This paper proposes a systematic framework, called target cost modeling (TCMd), for the application of TC in the construction industry to automatically generate a detailed project estimate based on a set of client requirements and a desired cost. It uses a three-level database to collect project data and generate a set of available alternatives. Value and compatibility studies govern the process of selecting among alternatives, and mathematical costing models calculate the cost accordingly. Finally, alternative value analysis improves the project value through the use of an optimization method, simulated annealing. TCMd is expected to efficiently improve project performance and enhance the design process while meeting a desired overall cost.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | cost estimating; regression analysis; simulated annealing optimization; target costing |
| Index terms: | heuristic, database, target cost, designer, project performance, client requirements, costing, modelling, estimate, construction industry, regression analysis, target costing, cost estimating, design process, project data, value analysis, construction project, simulated annealing, intuition |
| Subjects: | financial analysis, statistical analysis, industry analysis, cognitive psychology, data management, professional development, project management theory and practice, production management, algorithms, accounting and finance, economics, financial and cost management, analytical methods, design methods, data collection methods, risk assessment, profession |
| Topics: | Cost Management, Research Practice, Project Management, Information Management, Engineering Principles, Risk Management, Roles and Professions, Design Practice, Digital Applications |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here