Proactive Cost Management Model for Building Projects

Abstract

Aim: Scholars are persistent in calling for proactive management of construction characteristics. Lack of a feasible model continues to daunt the cost objective in the sector. A framework was developed to guide this process of developing a feasible one. This research complements the recommendation aimed at developing a proactive cost management model for building projects. Study Design: a set of prototyped residential building design was obtained and bill of quantities prepared. Historical cost data collated through secondary sources for ten years was used to generate unit rates and elemental cost history of the prototyped design. The cost of the prototype design was estimated forty times and the yearly incremental or growth rate of each element computed. Study Area: Relevant data was collated in Nigeria. Cost data was extracted from the market research reports of the Nigerian Institute of Quantity Surveyor’s quarterly publications. Methodology: the research is underpinned on three constructs that, with best practice, proper knowledge management and predictions the proactive cost management can be attained. Geometric mean was used to compute the cost growth rates and a mathematical forecasting model using incremental rate principle developed. Best Practice Modules and Lessons Learned Mechanism subsystems were also created. Results: The three subsystems synthesised into the desired proactive cost management model predicts the likelihood of flawed activity and the culpability of associated stakeholder. The mathematical model forecast true cost growth of building elements at various milestone for possible contingency plan. There’s no significant difference between estimates and forecast values generated by the model, and the strength of the linear relationship is strong at 0.929571. Conclusion: This is a feasible tool for stakeholders’ proactive cost management. Stakeholders in building contracts can use the model from inception to finish. Project can better be managed and cost efficacy assured.