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Factors Driving Success of Cost Management Practices in Integrated Project Delivery (IPD)

Author

Listed:
  • Faris Elghaish

    (School of Civil Engineering and Surveying, University of Portsmouth, Portsmouth PO1 2UP, UK)

  • M. Reza Hosseini

    (School of Architecture and Built Environment, Deakin University, Geelong, VIC 3220, Australia)

  • Saeed Talebi

    (School of Engineering and the Built Environment, Birmingham City University, Birmingham B47XG, UK)

  • Sepehr Abrishami

    (School of Civil Engineering and Surveying, University of Portsmouth, Portsmouth PO1 2UP, UK)

  • Igor Martek

    (School of Architecture and Built Environment, Deakin University, Geelong, VIC 3220, Australia)

  • Michail Kagioglou

    (School of Engineering, Western Sydney University, Sydney, NSW 2751, Australia)

Abstract

Integrated project delivery (IPD) is a mode of project procurement recognised as facilitating superior project performance. However, this success is contingent on effective cost management practices that share cost data with all project stakeholders in an accurate, timely and transparent manner. Despite an extensive literature on aspects of cost management, none identifies the essential ingredients required of an effective cost management system, sufficiently robust to support successful IPD projects. Candidate cost management augmenting practices are drawn from the literature, and presented for scrutiny in questionnaire form, to fifty IPD experienced experts, based in the USA, UK and Australia. Findings reveal activity-based costing (ABC) to be effective at identifying overhead costs and creating accounting transparency. Similarly, earned value management (EVM), in combination with ABC, is effective at developing mathematical models for equitable risk-reward distribution. Moreover, web-based management systems, as supported by Building Information Modelling (BIM), are effective at generating trust and collaboration on which IPD success depends. A questionnaire survey using purposive sampling was conducted to assess the factors driving success of implementing IPD regarding cost management process. The contribution to knowledge made by this paper is in identifying requisite support mechanisms essential to elevate traditional cost management practices to the higher standard needed to ensure IPD delivery success.

Suggested Citation

  • Faris Elghaish & M. Reza Hosseini & Saeed Talebi & Sepehr Abrishami & Igor Martek & Michail Kagioglou, 2020. "Factors Driving Success of Cost Management Practices in Integrated Project Delivery (IPD)," Sustainability, MDPI, vol. 12(22), pages 1-14, November.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:22:p:9539-:d:445982
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    References listed on IDEAS

    as
    1. Tsai, Wen-Hsien & Yang, Chih-Hao & Chang, Jui-Chu & Lee, Hsiu-Li, 2014. "An Activity-Based Costing decision model for life cycle assessment in green building projects," European Journal of Operational Research, Elsevier, vol. 238(2), pages 607-619.
    2. Saeed Talebi & Lauri Koskela & Patricia Tzortzopoulos & Michail Kagioglou, 2020. "Tolerance Management in Construction: A Conceptual Framework," Sustainability, MDPI, vol. 12(3), pages 1-24, February.
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    Cited by:

    1. Mohammad Masfiqul Alam Bhuiyan & Ahmed Hammad, 2023. "A Hybrid Multi-Criteria Decision Support System for Selecting the Most Sustainable Structural Material for a Multistory Building Construction," Sustainability, MDPI, vol. 15(4), pages 1-36, February.
    2. Tingting Mei & Shuda Zhong & Huabin Lan & Zeng Guo & Yi Qin, 2023. "Configuration Analysis of Integrated Project Delivery Principles’ Obstacle to Construction Project Level of Collaboration," Sustainability, MDPI, vol. 15(4), pages 1-17, February.
    3. Tingting Mei & Zeng Guo & Peng Li & Kaixian Fang & Shuda Zhong, 2022. "Influence of Integrated Project Delivery Principles on Project Performance in China: An SEM-Based Approach," Sustainability, MDPI, vol. 14(8), pages 1-17, April.

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