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Oyegoke, A, Powell, E, Ajayi, S, Godawatte, G and Akenroye, TO (2021) Factors affecting the selection of effective cost control techniques in the UK construction industry. Journal of Financial Management of Property and Construction. ISSN 1366-4387
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Factors affecting the selection of effective cost control techniques in the UK construction industry.pdf - Accepted Version Download (213kB) | Preview |
Abstract
Purpose - This paper aims to identify and analyse the factors affecting the selection of effective cost control techniques in the UK construction industry and assess their importance. The study examines these key areas; (i) the factors that have significant impacts on cost overruns, (ii) the most effective cost control techniques, and (iii) the factors for selecting cost control techniques for a project. Design/methodology/approach - The study relies on a mixed-method research approach; a qualitative exploration of the most effective cost control techniques and the factors affecting the selection of cost control techniques, followed by a questionnaire survey and follow-up interviews. Relative Importance Index (RII) is used for ranking the factors. Research limitations/implications - Although the scope of the study was limited to the UK construction industry, the results could be interpreted for critical learning in other developed/developing countries. Findings - Budgeting technique is ranked first with-0.821RII, followed by cost forecasting-0.800RII and cashflow monitoring-00.733RII, as the most effective cost control techniques. On factors that influenced the choice of the techniques used, cost information/cost-related factors is ranked first with-0.611RII, followed by the size of the company-0.509RII and the effectiveness of the technique-0.572RII. Originality/value – Identifying and ranking the factors affecting the selection of effective cost control techniques in the UK construction industry has been the focal point of this study. The study also proposes a simple but effective model which can be used for critical learning on mitigating cost overruns and the effective use of cost control techniques in the construction industry.
| Item Type: | Article |
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| Additional Information: | The AAM is deposited under the above licence and any reuse is allowed in accordance with the terms outlined by the licence. To reuse the AAM for commercial purposes, permission should be sought by contacting permissions@emeraldinsight.com. |
| Subjects: | H Social Sciences > HF Commerce > HF5001 Business H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management H Social Sciences > HF Commerce H Social Sciences > HF Commerce > HF5601 Accounting |
| Divisions: | Business & Management (from Sep 19) |
| Publisher: | Emerald |
| Date Deposited: | 19 Feb 2021 12:09 |
| Last Modified: | 04 Sep 2021 05:54 |
| URI: | https://researchonline.ljmu.ac.uk/id/eprint/14486 |
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