Scope Reductions as Tool for Cost Control in Construction Projects: An Ex-Post Analysis of Scope Reduction Options

Nils O. E. Olsson
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Nils O. E. Olsson: Norwegian University of Science and Technology (NTNU), Trondheim, Norway

International Journal of Risk and Contingency Management (IJRCM), 2015, vol. 4, issue 4, 1-16

Abstract: Scope management is a key issue in construction projects. This paper studies scope reductions. Potential reductions of project scope as well as budget contingencies have been a tool for cost control of governmental investments in Norway since 2001. This paper studies implementation of such reduction in major construction projects in different governmental sectors. Project representatives were contacted to obtain information about actual use of pre-defined potential scope reductions. Eight of the 14 studied projects did not implement any of the predefined reductions. Six projects implemented some of the reductions. These reductions were mainly general reductions of the quality of the facilities. The Norwegian reduction lists are based on an unusually high degree of specification of potential actions for cost control. International best practice is more concerned with general approaches. To function as intended, possible reductions should be possible to implement late in a project. General contingencies appear to be more effective for cost control than predefined scope reductions.

Date: 2015
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