What Are the Big Issues in Cost Management?

Mahanim Hanid1, Mohan Siriwardena2 & Lauri Koskela3

1Phd Candidate, School of the Built Environment, University of Salford; UK. Phone +44 161 2953458; m.b.hanid@edu.salford.ac.uk
2Lecturer, School of the Built Environment, University of Salford; UK. Phone +44 161 2957052; M.L.Siriwardena@salford.ac.uk
3Professor, School of the Built Environment, University of Salford; UK. Phone +44 161 2956378; l.j.koskela@salford.ac.uk

Abstract

This paper presents the current big issues in cost management. It covers the theoretical aspects, the causes and effects, and possible countermeasures. This paper is a result of a literature review conducted during the initial stages of a doctoral research. In doing so, principles of lean production are considered as a basis for critical evaluation. Seven big issues have been identified as shortcomings in the current construction cost management approaches. Some of such issues identified are failure to forecast, failure to pinpoint improvement opportunities and poor support to inter-organizational cost management. Possible countermeasures are suggested to address the identified issues. This research is expected to contribute towards developing conceptual solutions for improving the cost management approaches.

Keywords

Cost management, lean, value, waste

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Reference

Hanid, M. , Siriwardena, M. & Koskela, L. 2011, 'What Are the Big Issues in Cost Management?' In:, Rooke, J. & Dave, B., 19th Annual Conference of the International Group for Lean Construction. Lima, Peru, 13-15 Jul 2011.

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