by Jeffrey C Kadlowec, Architect
Abstract
Current demands on the construction industry have forced those in managerial positions to explore new methods for keeping project costs low while focusing on quality of work and time spent completing it. Alternatives to the traditional delivery model allow individuals and companies to assume roles typically held by others. Implementation of new technologies including the latest design tools, estimating software and management techniques will improve the working environment for all parties involved.
Keywords: project management, construction costs, design/build, software technology
Managing Costs
With growing demands on the construction industry, managing both production cost and transaction costs has become critical to the success of a project. Although much emphasis is placed the accuracy of estimates which are a combination of materials and labor, not enough attention is focused on the cost of project management [Haaskjold 2021]. The emergence of new technologies for use in design, estimating and management provide opportunities to control the total project cost while balancing the quality of the work against the time spent managing it.
The equation presented expresses the cost of project management as a combination of client costs and contractor costs over total project cost.
Over the past two decades, the construction industry has begun a transitioning from the traditional project delivery model,
to an alternate design-build delivery system.
State laws have historically prevented architects and engineers from preforming the duties of general contractors allowing contractors to corner the market on the design-build. However, the American Institute of Architects (AIA) has recently began publishing a variety of agreements broadening the scope for individuals and companies throughout the entire industry to assume the role of project lead.
Time and cost overruns are common in the construction industry. These are on average nearly 30% as explained by [Wyke 2023]. An early focus on planning can reduce the overall project time and improve the outcome significantly. Feasibility studies led by the various parties involved in project can be used assess and manage the risks. Over the design, development, and construction phases, these reports become increasingly detailed and more accurate compared to the speculative nature of an original pro forma.
The implementation of Building Information Modeling (BIM) is a digital representation of a construction project and method of organizing that data throughout its lifecycle [Abdulwahhab 2022]. The usefulness of this method however depends upon the size, scope and complexity of a project. Limitations of the software, additional hardware costs and steep learning curves involved with its advanced features must be considered. Decisions about the benefits should be made based on the time allocated for using this method over older, more traditional practices.
One area of innovation that has seen major advances recently is that of mobile technology. Mobile devices are being used in nearly all phases of construction. They allow for faster communication between every person involved with project. The downside however is that it has created unrealistic expectations about the time required to complete actual tasks. The table presented by [Okoro 2019] list a variety of mobile applications, their intended uses, and areas of application. Although it is unlikely that the time involved in actual labor can be reduced, these tools do provide more efficient and effective means of managing that work. This further helps control cost through better coordination, reducing the risks of improper scheduling and costly rework. It can provide real-time assessment of construction costs, providing project managers more ability to keep the work on time and within budget.
References
Abdulwahhab, Roa’a; Naimi, Sepanta & Abdullah, Raed. (2022). Managing Cost and Schedule Evaluation of a Construction Project via BIM Technology and Experts’ Points of View. Mathematical Modelling of Engineering Problems. 9. 1515-1522. 10.18280/mmep.090611.
Haaskjold, Haavard; Andersen, Bjørn & Langlo, Jan. (2021). Dissecting the project anatomy: Understanding the cost of managing construction projects. Production Planning & Control. 34. 1-22. 10.1080/09537287.2021.1891480.
Okoro, Chima; Uchenna Sampson, Igwe & Mohamad, Sarajul. (2019). Recent Advances in Mobile Application for Real-Time Cost Management of Construction Projects.
Wyke, Simon; Lindhard, Søren & Larsen, Jesper. (2023). Using principal component analysis to identify latent factors affecting cost and time overrun in public construction projects. Engineering, Construction and Architectural Management. 10.1108/ECAM-02-2022-0189.
