Perera, B A K S; Perera, C S R and Jayalath, C (2022) Contractor’s perspective on key performance indicators of cost control in Asian, middle eastern, and European construction projects. International Journal of Construction Education and Research, 18(3), pp. 217-233. ISSN 1557-8771
Abstract
Construction project costs frequently deviate from their estimated costs. Cost controlling techniques/tools (CCTTs) can be used to monitor these deviations. However, the effectiveness of these techniques and tools has to be evaluated. Thus, the aim of this study was to identify the Key Performance Indicators (KPIs) of CCTTs used in Asian, Middle Eastern, and European construction projects. The study included a series of interviews with 15 experts to categorize the techniques and tools and identify their KPIs. A questionnaire survey was conducted among 300 chartered quantity surveyors to evaluate the level of significance of each CCTT and its KPIs. The highest number of CCTTs is implemented in the execution stage, while only few CCTTs are implemented in the initiation stage. The most significant technique used in the initiation stage is the ‘preliminary project estimate,’ and its most significant KPI is the ‘cost per functional unit.’ ‘Contract management’ is the most important technique used in the execution stage. ‘Final accounts’ with ‘effective contract sum’ as the KPI is the principle technique used in the closing stage.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | contractor’s perspective; cost controlling techniques/tools; key performance indicators |
| Index terms: | cost control, construction project, questionnaire, final account, interview, contract management, survey, effectiveness, estimate, quantity surveying, key performance indicator, deviation |
| Subjects: | contract management, production management, payment, performance management, project delivery, financial and cost management, data collection methods, profession |
| Topics: | Research Practice, Cost Management, Roles and Professions, Contract Administration, Project Management, Quality Management |
| Descriptive scope: | 4 PCEA |
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