New cost control techniques in mega construction projects

Abstract

The construction industry in the U.K. is a vital sector of the country’s economy. However, this industry is faced by various types of uncertainties and risks due to their dynamic environment, particularly for megaprojects. The study aimed to determine the modern and effective cost control techniques that are utilized in for mega construction projects in the U.K. A mixed-method approach that involves both qualitative and quantitative approaches were adopted in this research for data collection and analysis. Five semi-structured interviews with construction professionals were conducted first to find out modern and effective techniques used for projects cost control. This is followed by carrying out Delphi survey twice with 42 and 39 construction professionals. Results revealed that the top five techniques that can be utilized for controlling megaproject costs were: Activity-based costing method, Contract Variance – Unit Costing, To-Complete Performance Index (TCPI), Cost-Value Reconciliation and BIM.