https://doi.org/10.24928/2017/0341

Discrete Costing Versus Collaborative Costing.

Sa’id A. Namadi1, Christine Pasquire2 & Emmanuel Manu3

1PhD Research Student, Centre for Lean Projects, School of Architecture, Design and Built Environment, Nottingham Trent University, UK, +44(0)7592030388 sa’id.ahmednamadi2015@my.ntu.ac.uk
2Professor, School of Architecture, Design and Built Environment, and Director Centre for Lean Projects, Nottingham Trent University, UK, +44(0) 115 848 2095 christine.pasquire@ntu.ac.uk
3Senior Lecturer, School of Architecture, Design and Built Environment, Projects, Nottingham Trent University, Nottingham NG1 4FQ, UK, +44(0) 7735083823 emmanuel.manu@ntu.ac.uk

Abstract

The UK construction industry has witnessed a recent shift towards integrated and collaborative approaches. Such collaborative efforts include the use of integrated systems like BIM, lean and innovative procurement options which are now reshaping project delivery systems. However, in the UK, most efforts have focused primarily on the conventional project management system, which is coherent and contract-based and has brought the separation in the processes of costing/design and production. In fact, cost and design processes are still treated as independent and separate functions which are carried out discretely within the current project delivery system. This neglect, and the lack of a holistic and collaborative approach in costing, arguably accounts for much of the cost overrun that is still prevalent in the UK industry. Traditionally, cost management has been the chief duty of Quantity Surveyors (QSs) in the UK. Recently, Target Value Design (TVD) has emerged as a management approach under the lean philosophy that aims to deliver exactly what the customer needs in terms of value within stipulated project constraints. The technique is aimed at making the budget become an input in the design and decision making process rather than an outcome of a design. The growth of collaborative approaches such as TVD opens new opportunities for project participants to deliver more value for clients and work collaboratively. This paper reports on the literature review that aimed at developing a framework to improve the current cost management practice towards a more collaborative system against the existing discrete form of costing that inhibits collaboration.

Keywords

Keywords: Discrete Costing, Collaborative Costing, Target Value Design, Cost Management, Quantity Surveying.

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Reference

Namadi, S.A. , Pasquire, C. & Manu, E. 2017, 'Discrete Costing Versus Collaborative Costing.' In:, 25th Annual Conference of the International Group for Lean Construction. Heraklion, Greece, 9-12 Jul 2017. pp 3-10

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