Lam, K C; Runeson, G; Ng, S T; Hu, T S; Cheung, S O and Deng, Z M (2001) Capital budget planning practices of building contractors in Hong Kong. Construction Management and Economics, 19(6), pp. 569-576. ISSN 01446193
Abstract
This paper explores the current practice of capital budget planning and control in the Hong Kong (HK) construction industry, based on two surveys undertaken in 1994 and 1999. The aims of these surveys were to uncover the financial planning, monitoring and control procedures used by building engineering contractors in HK. The results of the current survey reveal that less than half of the respondents undertook any form of capital budget planning. The most common form of capital budget planning was a review of the minimum rate of return. Despite the low prevalence of planning, most respondents adopted some method of capital budget control, especially by way of monitoring project performance. The 1999 study was compared with a similar survey conducted in 1994. The results indicate that there was no significant improvement in capital budget planning practices over the five year period. In addition to these findings, this paper concludes with a classification of firms, according to their capital budget planning behaviour, using discriminant function analysis.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | capital budgeting; discriminant analysis; planning and control |
| Index terms: | project performance, monitoring, construction industry, building contractor, Hong Kong, discriminant function analysis, discriminant analysis, capital budgeting, control procedure, building engineering, financial planning, survey |
| Subjects: | statistical analysis, budgeting, industry analysis, project management theory and practice, Geography, project delivery, financial and cost management, mechanical systems, data collection methods, practitioner, control systems |
| Topics: | Roles and Professions, Engineering Principles, Research Practice, Geographical Context, Project Management, Cost Management, Site Management |
| 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