Designing a cost control system to increase competitiveness in construction projects based on the integration of PFABC and tc
Subject Areas : Management AccountingHossein Toosi 1 , Arezou Chamikarpour 2
1 - Assistant Professor, Department of Project Management and construction, Faculty of Architecture, University of Tehran, Tehran, Iran.
2 - Masters student , Project Management & Construction, Architecture Department, Pars University of Architecture & Arts, Tehran
Keywords: Cost Management, Performance focused Activity b, Target costing, overhead cost, competitive cost, Construction Projects,
Abstract :
The main purpose of the present research is to use new costing methods in construction projects to reduce and control the amount of cost deviations and some limitations in the common methods of cost management in projects. In competitive or highly uncertain projects, it is not possible to control the momentum of the project's profit and loss, and, it is not possible to accurately identify the activities causing profit or loss and the extent of their impact on these results.After a literature review, a method developed to control the momentum of direct and overhead costs of the project during its progress. An interview was conducted with 26 financial managers in construction companies during 2 to 4 times using goal-oriented and bullet-proof methods from June 2016 to May 2017 with the aim of validating and modifying the method. According to a semi-structured interview analysis, the proposed method contributed to increasing the precision, certainty, traceability of overhead costs that is about 10 to 35 percent, and provided the integrity of the financial, technical and operational system. It also facilitates rooted deviations, and reduces costs by considering Activity-driven Competitive and strategic conditions. It's also limiting the target cost of working packs and causing an alarm on the completion of each department's budget and analyze its reasons, allowing for control of budget deviations. Also, according to Friedman test, there is a meaningful competitive ability compared to the conventional cost control method in the projects.
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