DIGITAL MANAGEMENT OF CONSTRUCTION COSTS.

Today, software applications make cost estimation and management easier than ever before, but the role played by a construction professional who undertakes financial control and performance of a project remains as crucial as ever.

Bibliographic Details
Main Author:	AIGBAVBOA, CLINTON
Corporate Author:	ScienceDirect (Online service)
Other Authors:	Kissi, Ernest
Format:	eBook
Language:	English
Published:	Cambridge : WOODHEAD PUBLISHING, 2025.
Series:	Woodhead Publishing series in civil and structural engineering
Subjects:	Construction industry > Costs. Construction industry > Cost control. Electronic books.
Online Access:	Connect to the full text of this electronic book

Table of Contents:

Front Cover
Digital Management of Construction Costs
Copyright Page
Dedication
Contents
Foreword
Preface
Acknowledgments
1 General introduction
1.1 Introduction
1.2 Objectives of the book
1.3 Contribution and value of the book
1.3.1 Understanding construction project cost management
1.3.2 Understanding digital construction management
1.3.3 Digital construction project costs management
1.3.4 Emerging tools for construction projects cost management
1.3.5 Digitalization and cost dynamics of construction projects
1.3.6 Cost data
1.3.7 Digital construction project costs management-practical steps
1.3.8 Digital construction project costs management-an Industry 4.0 framework
1.4 Conclusion
1.4.1 Digitalization as a catalyst for change
1.4.2 Integration of Industry 4.0 technologies
1.4.3 Enhanced accuracy and efficiency
1.4.4 Optimized resource allocation
1.4.5 Data-driven decision-making
1.4.6 Future directions and challenges
2 Understanding construction project cost management
2.1 Introduction
2.2 Concept of construction project cost management
2.3 Basic terminologies of construction cost management
2.3.1 Provisional sum
2.3.2 Profits
2.3.3 Life cycle costing
2.3.4 Return on investment
2.3.5 Direct costs
2.3.6 Indirect costs
2.3.7 Sunk cost
2.3.8 Learning curve theory
2.3.9 Contingency
2.3.10 Reserves
2.3.10.1 Contingency reserve
2.3.10.2 Management reserve
2.4 Construction project cost management practices
2.4.1 Resource planning
2.4.2 Cost estimation
2.4.2.1 Types of cost estimation techniques
Analogous estimating
Parametric estimating
Bottom-up estimating
Three-point system
2.4.2.2 Cost budgeting
2.4.2.3 Cost control
2.4.2.4 Cost reporting
2.5 Challenges of project cost management practices.
2.5.1 Usage of obsolete methods and concepts
2.5.2 Lack of knowledge on the use of available tools and technology
2.5.3 Overemphasizing outcomes while disregarding the project cost management process
2.5.4 Absence of project cost management procedures and systems suited to the organization
2.5.5 Abdication of complex strategies
2.5.6 Managers' lack of consistency in cost management practices
2.5.7 Severe decision failure, enormous marketing expenses
2.5.8 Negative attitude regarding the application of information and communication technology
2.5.9 Difficulty in monitoring different sources of day-to-day cost data
2.5.10 Variations in contract
2.5.11 Insufficient financial commitment to projects
2.6 Importance of construction project cost management
2.6.1 Maximizing project profitability
2.6.2 Enhancing project efficiency
2.6.3 Mitigating financial risk
2.6.4 Improving project performance
2.6.5 Increasing project accountability
2.6.6 Enhancing project quality
2.6.7 Improving project communication
2.6.8 Facilitate project planning
2.6.9 Compliance with regulatory requirements
2.6.10 Enhancing project sustainability
2.7 Chapter review/summary
References
3 Understanding digital construction management
3.1 Introduction
3.2 The need for digital construction management
3.2.1 Benefits of digital construction management
3.2.2 Operational efficiency and productivity enhancements
3.2.3 Enhanced project planning and coordination
3.2.4 Improved safety and risk management
3.2.5 Sustainability and environmental benefits
3.2.6 Change management and benefits realization strategies
3.3 Challenges in implementing digital construction management
3.3.1 Resistance to change and cultural barriers
3.3.2 Lack of skilled workforce.
3.3.3 Interoperability and data integration
3.3.4 Data security and privacy concerns
3.3.5 Cost and investment requirements
3.3.6 Standardization and regulatory compliance
3.3.7 Integration with existing processes and legacy systems
3.4 Best practices for digital construction management
3.5 Data-driven decision-making in construction management
References
4 Digital construction project cost management
4.1 Construction project cost management in digitalization
4.2 Overview of the emergence of construction cost management
4.3 Construction cost management 1.0
4.4 Construction cost management 2.0
4.5 Construction cost management 3.0
4.6 Construction cost management 4.0
4.7 Methods and tools for construction project cost management
4.8 Methods
4.8.1 Cost planning
4.8.2 Risk management
4.8.3 Earned value management
4.8.4 Value engineering
4.8.5 Change management
4.8.6 Cost control methods
4.9 Tools
4.9.1 Building information modeling
4.9.2 Cost estimating tools
4.10 The nexus of construction project cost management and digitalization
4.10.1 Opportunities for cost management in construction: the role of digitalization
4.11 Use of building information modeling
4.12 Use of real-time monitoring and control systems
4.13 Opportunities for automation and streamlining of processes
4.14 Chapter review/summary
References
5 Emerging tools for construction project cost management
5.1 Introduction
5.2 Emerging tools for cost management
5.2.1 Building information modeling
5.2.2 Advantages of using building information modeling for construction cost management
5.2.3 Limitations and challenges of using building information modeling for construction cost management
5.2.4 Artificial intelligence for cost management
5.2.5 Artificial intelligence categories.
5.2.5.1 Machine learning
5.2.5.2 Computer vision
5.2.5.3 Natural language processing
5.2.6 Advantages of using artificial intelligence for construction cost management
5.2.7 Limitations and challenges of using artificial intelligence for construction cost management in digitalization
5.2.8 Internet of Things for real-time cost monitoring
5.2.9 Advantages of using the Internet of Things for real-time cost monitoring for construction cost management
5.2.10 Limitations and challenges of using the Internet of Things for real-time cost monitoring for construction cost manag...
5.2.11 Big Data Analytics for cost tracking and control
5.2.12 Limitations and challenges of using Big Data Analytics for cost tracking and control
5.2.13 Blockchain for supply chain cost management
5.3 Prospective benefits of emerging tools in the project cost management in digitalization
5.3.1 Real-time tracking and monitoring
5.3.2 Automated cost estimation
5.3.3 Enhanced project communication
5.3.4 Reduced waste
5.3.5 Improved risk management
5.4 Conclusion
References
6 Digitalization and cost dynamics of construction projects
6.1 Introduction
6.2 Cost dynamics in industrial digitalization
6.2.1 The role of digitalization in industrial cost management
6.2.2 The impact of industrial digitalization on cost reduction strategies
6.2.3 The challenges of implementing industrial digitalization for cost management
6.2.4 Case study on successful implementation of industrial digitalization to reduce costs
6.2.5 Siemens AG
6.2.6 The benefits
6.3 Cost dynamics in the construction industry
6.3.1 The majoring factors influencing cost dynamics in construction
6.3.1.1 Labor cost
6.3.1.2 Material cost
6.3.1.3 Equipment cost
6.3.1.4 Design changes
6.3.1.5 Project management as a factor.
6.3.1.6 Environmental and regulatory requirements
6.3.1.7 Economic conditions and cost dynamics in construction
6.3.2 The role of digitalization in construction cost management
6.4 Impacts of digitalization on construction cost dynamics
6.5 Conclusion
References
7 Cost data
7.1 Introduction
7.2 Cost data in the construction industry
7.3 Cost data sources
7.4 Why cost data in the digitalization of construction
7.5 Type of cost data in the construction industry
7.5.1 Detailed cost data
7.5.2 Parametric cost data
7.5.3 Partial/Incomplete cost data
7.5.4 Ad hoc cost data
7.6 Cost data application in the digitalization of construction
7.7 Implications of cost data application in the digitalization of construction
7.7.1 Improved cost estimation
7.7.2 Enhanced project monitoring
7.7.3 Improved resource management
7.7.4 Better decision-making
7.7.5 Improved collaboration
7.7.6 Predictive analytics
7.7.7 Real-time cost control
7.7.8 Cost optimization
7.7.9 Improved project performance
7.7.10 Improved transparency
7.7.11 Improved stakeholder communication
7.7.12 Increased profitability
7.7.13 Integration with other digital technologies
7.8 Cost data in the construction process
7.8.1 Design phase
7.8.2 The pretender phase
7.8.3 The posttender phase
7.8.4 Construction phase
7.8.5 Operation phase
7.9 Chapter summary
References
8 Digital construction project cost management-practical steps
8.1 Introduction
8.2 The need for BIM in construction project cost management
8.2.1 An illustration of BIM 360 build in construction cost management
8.2.1.1 Resource planning
Human resource management using BIM 360 build
8.2.1.2 Material resource (scheduling) using Revit software
Example: making a wall schedule.