Redefining cost control framework for construction budgetary management
Construction projects are regarded as successful if they are delivered at the right time, at an appropriate cost and to quality standard. Among these success factors, the issue of cost is very significant. The purpose of this paper is to propose a framework to redefining cost control procedure in construction budget management. This is with a view to addressing the incessant problem of cost overrun of construction projects. A review of the conventional cost control techniques and their appropriateness to the modern construction cost management process was carried out. Findings from the review of major projects around the world, using the conventional cost control methods revealed a significant cost overruns ranging up to 70% of the initial budget estimate. This signals the shortcomings of the existing cost control theories and procedures. A framework which provides an opportunity for taking pro-active measures, at various stages of construction processes, is therefore proposed. The framework could serve as a basis for keeping the cost of construction projects within the estimated budget and checking the hitherto construction budget escalation.