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Article

Factors Driving Success of Cost Management Practices in Integrated Project Delivery (IPD)

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School of Civil Engineering and Surveying, University of Portsmouth, Portsmouth PO1 2UP, UK
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School of Architecture and Built Environment, Deakin University, Geelong, VIC 3220, Australia
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School of Engineering and the Built Environment, Birmingham City University, Birmingham B47XG, UK
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School of Engineering, Western Sydney University, Sydney, NSW 2751, Australia
*
Author to whom correspondence should be addressed.
Sustainability 2020, 12(22), 9539; https://doi.org/10.3390/su12229539
Received: 1 September 2020 / Revised: 9 November 2020 / Accepted: 10 November 2020 / Published: 16 November 2020
(This article belongs to the Special Issue Tolerance Management in Architecture, Engineering and Construction)
Integrated project delivery (IPD) is a mode of project procurement recognised as facilitating superior project performance. However, this success is contingent on effective cost management practices that share cost data with all project stakeholders in an accurate, timely and transparent manner. Despite an extensive literature on aspects of cost management, none identifies the essential ingredients required of an effective cost management system, sufficiently robust to support successful IPD projects. Candidate cost management augmenting practices are drawn from the literature, and presented for scrutiny in questionnaire form, to fifty IPD experienced experts, based in the USA, UK and Australia. Findings reveal activity-based costing (ABC) to be effective at identifying overhead costs and creating accounting transparency. Similarly, earned value management (EVM), in combination with ABC, is effective at developing mathematical models for equitable risk-reward distribution. Moreover, web-based management systems, as supported by Building Information Modelling (BIM), are effective at generating trust and collaboration on which IPD success depends. A questionnaire survey using purposive sampling was conducted to assess the factors driving success of implementing IPD regarding cost management process. The contribution to knowledge made by this paper is in identifying requisite support mechanisms essential to elevate traditional cost management practices to the higher standard needed to ensure IPD delivery success. View Full-Text
Keywords: construction; risk-reward sharing; alliancing; partnerships; cost estimation; 5D BIM; web-based systems; ICT cost data; digitalisation construction; risk-reward sharing; alliancing; partnerships; cost estimation; 5D BIM; web-based systems; ICT cost data; digitalisation
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MDPI and ACS Style

Elghaish, F.; Hosseini, M.R.; Talebi, S.; Abrishami, S.; Martek, I.; Kagioglou, M. Factors Driving Success of Cost Management Practices in Integrated Project Delivery (IPD). Sustainability 2020, 12, 9539. https://doi.org/10.3390/su12229539

AMA Style

Elghaish F, Hosseini MR, Talebi S, Abrishami S, Martek I, Kagioglou M. Factors Driving Success of Cost Management Practices in Integrated Project Delivery (IPD). Sustainability. 2020; 12(22):9539. https://doi.org/10.3390/su12229539

Chicago/Turabian Style

Elghaish, Faris, M. R. Hosseini, Saeed Talebi, Sepehr Abrishami, Igor Martek, and Michail Kagioglou. 2020. "Factors Driving Success of Cost Management Practices in Integrated Project Delivery (IPD)" Sustainability 12, no. 22: 9539. https://doi.org/10.3390/su12229539

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