Factors affecting the selection of effective cost control techniques in the UK construction industry

Adekunle Sabitu Oyegoke, Robert Powell, Saheed Ajayi, Godawatte Arachchige Gimhan Rathnagee Godawatte, Temidayo Akenroye

Research output: Contribution to journalArticlepeer-review

3 Downloads (Pure)

Abstract

Purpose
This paper aims to identify and analyse the factors affecting the selection of effective cost control techniques in the UK construction industry and assess their importance. The study examines these key areas; the factors that have significant impacts on cost overruns, the most effective cost control techniques and the factors for selecting cost control techniques for a project.

Design/methodology/approach
The study relies on a mixed-method research approach; a qualitative exploration of the most effective cost control techniques and the factors affecting the selection of cost control techniques, followed by a questionnaire survey and follow-up interviews. Relative importance index (RII) is used for ranking the factors.

Findings
The budgeting technique is ranked first with-0.821RII, followed by cost forecasting-0.800RII and cashflow monitoring-00.733RII, as the most effective cost control techniques. On factors that influenced the choice of the techniques used, cost information/cost-related factors are ranked first with-0.611RII, followed by the size of the company-0.509RII and the effectiveness of the technique-0.572RII.

Research limitations/implications
Although the scope of the study was limited to the UK construction industry, the results could be interpreted for critical learning in other developed/developing countries.

Originality/value
Identifying and ranking the factors affecting the selection of effective cost control techniques in the UK construction industry has been the focal point of this study. The study also proposes a simple but effective model which can be used for critical learning on mitigating cost overruns and the effective use of cost control techniques in the construction industry.
Original languageEnglish
JournalJournal of Financial Management of Property and Construction
Early online date10 May 2021
DOIs
Publication statusE-pub ahead of print - 10 May 2021

Keywords

  • cost control techniques, construction projects, cost overruns
  • Cost control techniques
  • Cost overruns
  • Construction projects

ASJC Scopus subject areas

  • Building and Construction
  • Economics and Econometrics
  • Accounting
  • Business and International Management
  • Finance

Fingerprint Dive into the research topics of 'Factors affecting the selection of effective cost control techniques in the UK construction industry'. Together they form a unique fingerprint.

Cite this