Post-Contract Cost Control for Building Construction Projects

Abstract

Cost control is implemented to manage the cost of construction projects. Cost control is important in both pre-contract and post-contract stages, but it is more vital in the latter stage. It is a continuous process and must be conducted throughout the project to ensure the final construction cost does not exceed the estimated cost, thus preventing cost overrun. Various factors may lead to cost overrun, especially in building construction projects. Inadequate cost management is not a matter to be taken lightly because it results in a large number of cost overruns. This alarming problem is negatively affecting the parties involved in the project and the nation. Hence, this study is carried out to mitigate cost overrun by practicing effective cost control. This research is conducted to identify the post-contract cost control practices implemented by contractors for building construction projects, the challenges encountered, and the strategies to overcome the challenges. The quantitative method is utilized, which involves conducting a questionnaire survey. 28 respondents from G6 and G7 contractors have provided feedback, and the results obtained were analyzed using Statistical Social Package Science (SPSS). For the first objective, the post-contract cost control practices for building construction projects include monitoring material costs, using bills of quantities to manage construction costs, and monitoring overheads. For the second objective, the challenges encountered include poor project planning, poor communication between project parties, and improper contract documentation. For the last objective, the strategies to overcome the challenges include good construction planning, effective site supervision, and appointment of qualified management staff. This research explores the improvements in the practices of post-contract cost control in construction projects.