Management and Cost Control of Construction Projects in Jordan

Sireen Mamoun Arabiyat and Ayman Hasan Al-Momani

International Business Research, 2020, vol. 13, issue 9, 166

Abstract: The variations in time and quality are vital to the projects' success. Though the cost variation is the most impacting variation, the objective of this study is to recognise the significance of the cost controls in the construction projects in Jordan. Moreover, it aims to determine the factors that lead to reduce these costs. For the methodology, the study used the questionnaire instrument for the data collection. The study sample entailed 154 respondents who hold the responsibility in relevance positions with experiences in contracting and consultants engineering field in Jordan under first and second-grade classification. The study results revealed that there is a significant relationship between cost reduction and all investigated factors, namely, the demographic variables, the pre-execution conditions and specification, and managerial, technical, or financial dimensions. Further, the results showed a significant impact of proper resource planning. In summary, the key factors affecting the project cost during the pre-execution stage involves the appropriate resources planning (i.e., workforce, funds, data). In details, the most critical factors affecting the project cost from managerial dimension are the project manager assignment and integrity of consultant. For the technical dimension, the elements are the skilled workers, the applied methods, the statements and specifications. Lastly, for the fund allocation dimension, the most critical factors that affect the project cost from a financial point of view. Lastly, a set of recommendations are proposed to the project managers to reduce the cost.

Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:ibn:ibrjnl:v:13:y:2020:i:9:p:166

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