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

Faris Elghaish, M. Reza Hosseini, Saeed Talebi, Sepehr Abrishami, Igor Martek and Michail Kagioglou
Additional contact information
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

Sustainability, 2020, vol. 12, issue 22, 1-14

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.

Keywords: construction; risk-reward sharing; alliancing; partnerships; cost estimation; 5D BIM; web-based systems; ICT cost data; digitalisation (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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