Skip to main content
SpringerLink
Log in

Mapping the Influence of Project Management on Project Cost

  • Construction Management
  • Published:
KSCE Journal of Civil Engineering Aims and scope Submit manuscript

Abstract

This paper develops a framework to map the influence of Project Management (PM) attributes on project cost and then tests these relationships between PM attributes and project cost on industrial construction projects. PM attributes are identified and classified into five areas: Human Resource Management (HRM), function of PM, partnering and supply chain, design efficiency, and quality. The framework model is tested on survey data from member companies of the Construction Industry Institute (CII) using the Structural Equation Modeling method. The results reveal that quality, function of PM, and HRM can have a significant positive impact on project cost. Quality is found to have the most direct and greatest impact on project cost efficiency among PM attributes. The goal of this statistical study is to demonstrate the paths and strengths of the effects of PM attributes on project cost.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

References

  • Abdullah, M. R., Abdul Azis, A. A., and Rahman, I. A. (2011). “Potential effects on large mara construction projects due to construction delay.” International Journal of Integrated Engineering, Vol. 1, No. 2, pp. 53–62.

    Google Scholar 

  • Al-Najjar, J., Kumaraswamy, M., and Enshassi, A. (2009). “Delays and cost overruns in the construction projects in the gaza strip.” Journal of Financial Management of Property and Construction, Vol. 14, No. 2, 126–151, DOI: 10.1108/13664380910977592.

    Article  Google Scholar 

  • Ameh, O. J., Soyingbe, A. A., and Odusami, K. T. (2010). “Significant factors causing cost overruns in telecommunication projects in nigeria.” Journal of Construction in Developing Countries, Vol. 15, No. 2, pp. 49–67.

    Google Scholar 

  • Association of Project Management (APM). (1995). Body of Knowledge (Version 2), APM, Princes Risborough, U.K.

  • Avots, I. (1969). “Why does project management fail?.” California Management Review, Vol. 12, No. 1, pp. 77–82, DOI: 10.2307/41164208.

    Article  Google Scholar 

  • Azhar, N., Farooqui, R. U., and Ahmed, S. M. (2008). “Cost overrun factors in construction industry of pakistan.” International Conference on Construction in Developing Countries, pp. 499–508.

    Google Scholar 

  • Belout, A. (1998). “Effects of human resource management on project effectiveness and success: Toward a new conceptual framework.” International Journal of Project Management, Vol. 16, No. 1, pp. 21–26, DOI: 10.1016/S0263-7863(97)00011-2.

    Article  Google Scholar 

  • Belout, A. and Gauvreau, C. (2004). “Factors influencing project success: The impact of human resource management.” International Journal of Project Management, Vol. 22, No. 1, pp. 1–11, DOI: 10.1016/S0263-7863(03)00003-6.

    Article  Google Scholar 

  • Bentler, P. M. and Chou, C. (1987). “Practical issues in structural modeling.” Sociological Methods Research, Vol. 16, No. 1, pp. 78–117.

    Article  Google Scholar 

  • Bowersox (1974). Logistical management, McGraw-Hill international editions, Columbus, O.H..

  • Brown, A. and Adams, J. (2000). “Measuring the effect of project management on construction outputs: A new approach.” International Journal of Project Management, Vol. 18, No. 5, pp. 327–335, DOI: 10.1016/S0263-7863(99)00026-5.

    Article  Google Scholar 

  • Bryde, D. J. (2003). “Modelling project management performance.” International Journal of Quality and Reliability Management, Vol. 20, No. 2, pp. 229–254, DOI:10.1108/02656710310456635.

    Article  Google Scholar 

  • Byrne, B. M. (2002). Structural Equation Modeling with AMOS-Basic Concepts, Applications, and Programming, Mahwah NJ: Lawrence Erlbaum, Mahwah, N.J..

    Google Scholar 

  • Chan, D. W. M. and Kumaraswamy, M. M. (2002). “Compressing construction durations: Lessons learned from hong kong building projects.” International Journal of Project Management, Vol. 20, No. 1, pp. 23–35.

    Article  Google Scholar 

  • Chan, S. and Park, M. (2005). “Project cost estimation using principal component regression.” Construction Management and Economics, Vol. 23, pp. 295–304, DOI: 10.1080/01446190500039812.

    Article  Google Scholar 

  • Chua, D. K. H., Kog, Y. C., and Loh, P. K. (2015). “Critical success factors for different project objectives.” Journal of Construction Engineering and Management, Vol. 125, No. 3, pp. 142–150, DOI: 10.1061/(ASCE)0733-9364(1999)125:3(142).

    Article  Google Scholar 

  • Construction Industry Institute (CII). (2011). Benchmarking and Metrics: Project Level Survey (small project questionnaire). (Version 11)

  • Construction Industry Institute (CII). (2012). Benchmarking and Metrics: Project Level Survey (large project questionnaire). (Version 11)

  • Contreras, J., Hare, E., Escamilla, M., and Raventos, H. (2011). “Principal domains of quantitative anxiety trait in subjects with lifetime history of mania.” Journal of Affective Disorders, Vol. 136, Nos. 1–2, pp. 69–75, DOI: 10.1016/j.jad.2011.06.036.

    Article  Google Scholar 

  • Cooper, M. C., Lambert, D. M., and Pagh, J. D. (1997). “Supply chain management: More than a new name for logistics.” International Journal of Logistics Management, Vol. 8, No. 1, pp. 1–14, DOI: 10.1108/09574099710805556.

    Article  Google Scholar 

  • Deborah L. Bandalos. (1997). “Assessing sources of error in structural equation models: The effects of sample size, reliability, and model misspecification.” Structural Equation Modeling A Multidisciplinary Journal, Vol. 4, No. 3, pp. 177–192.

    Article  Google Scholar 

  • Ehrlenspiel, E. I. K., Kiewert, D. I. A., and Lindemann, D. I. U. (2007). Cost-efficient design., Vol. 142, No. 5, p. 56, DOI: 10.1115/1.802507.

    Google Scholar 

  • Ekambaram Palaneeswaran, Peter E. D. Love, Mohan M. Kumaraswamy, and Thomas, S. T. Ng. (2008). “Mapping rework causes and effects using artificial Neural Networks.” Building Research and Information, Vol. 36, No. 5, pp. 450–465.

    Article  Google Scholar 

  • Fabi, B. and Pettersen, N. (1992). “Human resource management practices in project management.” International Journal of Project Management, Vol. 10, No. 2, pp. 81–88, DOI: 10.1016/0263-7863 (92)90060-M.

    Article  Google Scholar 

  • Frigenti, E. and Comninos, D. (2006). The Practice of Project Management: A Guide to the Business-Focused Approach, Kogan Page, Limited.

    Google Scholar 

  • Gayen, A. K. (1951). “The frequency distribution of the product-moment correlation coefficient in random samples of any size drawn from Non-normal Universes.” Biometrika, Vol. 38, Nos. 1–2, pp. 219–247, DOI: 10.2307/2332329.

    Article  MathSciNet  MATH  Google Scholar 

  • George, J. (1982). “Editorial: More than management.” History News, Vol. 37, No. 3, pp. 6–6.

    Google Scholar 

  • Hair, J. F., Anderson, R. E., Tatham, R. L., and Black, W. (1998). “Multivariate data analysis.” Technometrics, Vol. 31, No. 3, pp.103–104.

    Google Scholar 

  • Hair, J. F., Ringle, C. M., and Sarstedt, M. (2013). “Partial least squares structural equation modeling: Rigorous applications, better results and higher acceptance.” Long Range Planning, Vol. 46, Nos. 1–2, pp. 1–12, DOI: 10.1016/j.lrp.2013.01.001.

    Article  Google Scholar 

  • Hasanzadeh, M., Tavakolirad, Z., and Abbasi, P. (2011). “Review of affective factors on cost, time and quality of construction projects in developing countries.” Emergency Management and Management Sciences (ICEMMS), 2nd IEEE International Conference, pp. 858–861, DOI: 10.1109/ICEMMS.2011.6015818.

    Google Scholar 

  • HO (2013). Handbook of univariate and multivariate data analysis with spss, second edition.

  • Holmes, L. (2010). The Dominance of Management: A Participatory Critique, Ashgate.

    Google Scholar 

  • Husin, H. N., Adnan, H., and Jusoff, K. (2008). “Management of safety for quality construction.” Journal of Sustainable Development, Vol. 1, No. 3, p. 41, DOI: 10.5539/jsd.v1n3p41.

    Google Scholar 

  • Ibbs, C. W. and Kwak, Y. H. (2000). “Assessing project management maturity.” Project Management Journal, Vol. 31, No. 1, pp. 32–43.

    Article  Google Scholar 

  • Ibbs, W. and Reginato, J. (2002). Quantifying the Value of PM, PMI (Project Management Institute).

    Google Scholar 

  • Idiake, J. E., Oke, A. A., and Shittu, A. A. (2015). “Analysis of cost and quality relationship of private building projects in Abuja, Nigeria.” International Journal of Construction Engineering and Management, Vol. 4, No. 2, pp. 35–43.

    Google Scholar 

  • Institute, P. M. (2008). A Guide to the Project Management Body of Knowledge, Project Management Institute.

    Google Scholar 

  • Iyer, K. C. and Jha, K. N. (2005). “Factors affecting cost performance: Evidence from indian construction projects.” International Journal of Project Management, Vol. 23, No. 4, pp. 283–295, DOI: 10.1016/j.ijproman.2004.10.003.

    Article  Google Scholar 

  • Jackson and Dennis, L. (2003). “Revisiting sample size and number of parameter estimates: Some support for the n:q hypothesis.” Structural Equation Modeling A Multidisciplinary Journal, Vol. 10, No. 1, pp. 128–141.

    Article  MathSciNet  Google Scholar 

  • Jr, J. Art Gowan, and R. G. Mathieu. (2005). “The importance of management practices in IS project performance.” Journal of Enterprise Information Management, Vol. 18, No. 2, pp. 235–255, DOI: 10.1108/17410390510579936.

    Article  Google Scholar 

  • Jolliffe, I. (2002). Principal Component Analysis, Springer New York.

    MATH  Google Scholar 

  • Jones, N. L. (2013). Leadership and Elizabethan Culture (Jepson Studies in Leadership), Palgrave Macmillan, Basing stoke.

    Google Scholar 

  • Josephson, P., Larsson, B., and Li, H. (2002). “Illustrative benchmarking rework and rework costs in swedish construction industry.” Journal of Management in Engineering, Vol. 18, No. 2, pp. 76–83, DOI: 10.1061/(ASCE)0742-597X(2002)18:2(76).

    Article  Google Scholar 

  • Kaming, P. F., Olomolaiye, P. O., Holt, G. D., and Harris, F. C. (1997). “Factors influencing construction time and cost overruns on highrise projects in Indonesia.” Construction Management and Economics, Vol. 15, No. 1, pp. 83–94, DOI: 10.1080/014461997373132.

    Article  Google Scholar 

  • Kang, Y., Dai, J., Mulva, S., and Choi, J. (2014). “The 10–10 performance assessment campaign: New theories regarding the benchmarking of capital project performance.” American Society of Civil Engineers, pp. 2335–2344, DOI: 10.1061/9780784413517.237.

    Google Scholar 

  • Litke, H. D. (1995). Projekt Management: Methoden, Techniken, Verhaltensweisen.

    Google Scholar 

  • Long, D. N., Ogunlana, S. O., and Lan, D. T. X. (2004). “A study on project success factors in large construction projects in vietnam.” Engineering Construction and Architectural Management, Vol. 11, No. 6, pp. 404–413.

    Article  Google Scholar 

  • Long, L. H., Lee, Y. D., and Lee, J. Y. (2008). “Construction management delay and cost overruns in vietnam large construction projects: A comparison with other selected countries.” Ksce Journal of Civil Engineering, Vol. 12, No. 12, pp. 367–377.

    Google Scholar 

  • Mansfield, N. R., Ugwu, O. O., Doran, T., Mansfield, N. R., Ugwu, O. O., and Doran, T. (1994). “Causes of delay and cost overruns in nigerian construction projects.” International Journal of Project Management, Vol. 12, No. 4, pp. 254–260, DOI: 10.1016/0263-7863(94)90050-7.

    Article  Google Scholar 

  • Meeampol, S. and Ogunlan, S. O. (2006). “Factors affecting cost and time performance on highway construction projects: Evidence from Thailand.” Journal of Financial Management of Property and Construction, Vol. 11, No. 1, pp. 3–20, DOI: 10.1108/13664380680001076.

    Article  Google Scholar 

  • Memon, A. H., Rahman, I. A., Abdullah, M. R., and Azis, A. A. A. (2010). “Factors affecting construction cost in mara large construction project: Perspective of project management consultant.” International Journal of Sustainable Construction Engineering and Technology, Vol. 1, No. 2, pp. 41–54.

    Google Scholar 

  • Minglong, Wu. (2010). The structural equation model: AMOS operation and Application, Chongqing University Press.

    Google Scholar 

  • Morris and Jonathan (1999). Improving construction design: The lean thinking paradigm, Doctoral dissertation, Cranfield University, Cranfield, England.

  • Nega, F. (2008). Causes and Effects of Cost Overrun on Public Building Construction Projects in Ethiopia. Master thesis, Addis Ababa University, Addis Ababa, Ethiopia

    Google Scholar 

  • Ogunlana, S., Li, H., and Sukhera, F. (2003). “System dynamics approach to exploring performance enhancement in a construction organization.” Journal of Construction Engineering and Management, Vol. 129, No. 5, pp. 528–536, DOI: 10.1061/(ASCE)0733-9364 (2003)129:5(528).

    Article  Google Scholar 

  • Okpala, D. C. and Aniekwu, A. N. (1988). “Causes of high costs of construction in Nigeria.” Journal of Construction Engineering and Management, Vol. 114, No. 2, pp. 233–244, DOI: 10.1061/(ASCE) 0733-9364(1988)114:2(233).

    Article  Google Scholar 

  • Oyedele, L., Jaiyeoba, B., and Fadeyi, M. (2003). “Design factors influencing quality of building projects in nigeria: Consultants' perception.” Australasian Journal of Construction Economics and Building, Vol. 3, No. 2, pp. 25–32, DOI: 10.5130/ajceb.v3i2.2916.

    Article  Google Scholar 

  • Pearson, K. (1895). “Note on regression and inheritance in the case of two parents.” Proceedings of the Royal Society of London, Vol. 58, pp. 240–242, DOI: 10.1098/rspl.1895.0041.

    Article  Google Scholar 

  • Persson, F. and Olhager, J. (2002). “Performance simulation of supply chain designs.” International Journal of Production Economics, Vol. 77, No. 3, pp. 231–245. DOI: 10.1016/S0925-5273(00)00088-8.

    Article  Google Scholar 

  • Pither, R. and Duncan, W. R. (1998). ISO 10006: Risky Business, PM Network.

    Google Scholar 

  • PMI (Project Management Institute). (2004). A Guide to the Project Management Body of Knowledge, Third Edition.

  • PMI (Project Management Institute). (2009). PMI today, Four Campus Boulevard, New Town Square.

  • Qureshi, T. M., Warraich, A. S., and Hijazi, S. T. (2009). “Significance of Project Management Performance Assessment (PMPA) Model.” International Journal of Project Management, Vol. 27, No. 4, pp. 378–388, DOI: 10.1016/j.ijproman.2008.05.001.

    Article  Google Scholar 

  • Reina, P. and Angelo, W. J. (2002). “Megaprojects need more study up front to avoid cost overruns.” Engineering News-Record, Vol. 249, No. 3, p. 11.

    Google Scholar 

  • Sambasivan, M. and Soon, Y. W. (2007). “Causes and effects of delays in malaysian construction industry.” International Journal of Project Management, Vol. 25, No. 5, pp. 517–526, DOI: 10.1016/j.ijproman.2006.11.007.

    Article  Google Scholar 

  • Schultz, R. L. and Pinto, J. K. (1987). “Strategy and tactics in a process model of project implementation.” Interfaces, Vol. 17, No. 17, pp. 34–46, DOI: 10.1287/inte.17.3.34.

    Article  Google Scholar 

  • Schumacher, R. E. and Lomax, R. G. (2004). A Beginner’s Guide to Structural Equation Modeling, Lawrence Erlbaum Associates, New Jersey.

    Google Scholar 

  • Sin, K. W. (1999). Factors affecting the process quality in design, Construction and maintenance of building projects in hong kong.

    Google Scholar 

  • Stretton, A. (2015). Series on general management functions and activities, and their relevance to the management of projects, Pm World Journal.

    Google Scholar 

  • Tenenhaus, M., Vinzi, V. E., Chatelin, Y. M., and Lauro, C. (2005). “PLS path modeling.” Computational Statistics and Data Analysis, Vol. 48, No. 1, pp. 159–205, DOI: 10.1016/j.csda.2004.03.005.

    Article  MathSciNet  MATH  Google Scholar 

  • Thomas, J. and Mullaly, M. (2007). “Understanding the value of project management: First Steps on an international investigation in search of value.” Project Management Journal, 38(3), 74–89. DOI: 10.1002/pmj.20007.

    Article  Google Scholar 

  • Tsui, A. S. (1990). “A multiple-constituency model of effectiveness: An empirical examination at the human resource subunit level.” Administrative Science Quarterly, Vol. 35, No. 3, pp. 458–483, DOI: 10.2307/2393313.

    Article  Google Scholar 

  • Ulrich, D. (1987). “Organizational capability as a competitive advantage: Human resource professionals as strategic partners.” Human Resource Planning, Vol. 10, No. 4, p. 169.

    Google Scholar 

  • UNRWA (United Nations Relief and Works Agency). (2006). Projects Completion Reports, Gaza, Palestine.

  • Westerveld, E. (2003). “The project excellence model: linking success criteria and critical success factors.” International Journal of Project Management, Vol. 21, No. 6, pp. 411–418, DOI: 10.1016/S0263-7863(02)00112-6.

    Article  Google Scholar 

  • Zulu, S. (2007). Impact of Project Management on Project Performance: A structural Equation Modeling Approach, Proceedings Of 23rd Annual ARCOM Conference, pp. 3–5.

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. School of Construction Management and Real Estate, Chongqing University, Chongqing, 400045, P.R. China

    Haiyan Jin, Liyin Shen & Zheng Wang

Authors
  1. Haiyan Jin
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Liyin Shen
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. Zheng Wang
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Haiyan Jin.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Jin, H., Shen, L. & Wang, Z. Mapping the Influence of Project Management on Project Cost. KSCE J Civ Eng 22, 3183–3195 (2018). https://doi.org/10.1007/s12205-018-0397-8

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s12205-018-0397-8

Keywords

Search

Navigation