Games People Play with Cost Control in Australia

Abstract

A study of a selected group of building and engineering construction contractors in the Australian construction industry was performed in order to determine the actual site cost control procedures and techniques being practiced. The study was conducted through a detailed questionnaire completed by the researcher during the course of interview sessions with the site managers of the 18 construction projects in the sample. The main trends disclosed from the questionnaire allowed a model of actual site cost control procedures to be flowcharted. This system was then subjected to a comparative analysis with an idealized site cost control system developed in a previous study. Cost control functions that are discussed in this paper include, among others, the method of work breakdown for site use in cost control, performance data feedback techniques and uses, yardsticks for cost control, and management action at the site. The study concludes with a set of general recommendations aimed to bring current site cost control practices more in line with the available body of knowledge.