Innovative Approaches to Construction Cost Management Under Policy Orientation

DOI: https://doi.org/10.62517/jiem.202603310

Author(s)

XiaoXiao Zhang

Affiliation(s)

Zibo Polytechnic University, Zibo, Shandong, China

Abstract

Construction cost management in China is entering a period of structural adjustment driven by national policy, in which market-based pricing reform, whole-process cost control, and green development requirements are reshaping the way construction costs are planned, monitored, and settled. This paper examines how these policy orientations can be translated into practical and innovative cost management approaches for construction projects. Based on a review of recent empirical studies of cost overruns and digital cost control, the paper analyzes the persistent weaknesses of traditional cost management, including fragmented stage-based control, reliance on outdated government pricing benchmarks, and weak dynamic monitoring during the construction phase. It then proposes an integrated framework that combines whole-process cost management, Building Information Modeling (BIM) enabled cost control, enterprise pricing databases, and dynamic cost early-warning mechanisms. The framework maps each policy instrument to a concrete management response and identifies the institutional conditions required for implementation, such as contract design, data governance, and personnel capability. The analysis indicates that BIM-based cost control can substantially improve the accuracy of cost estimation and the timeliness of cost information, while enterprise quota databases allow cost determination to keep pace with market fluctuations. The paper concludes that policy-oriented cost management innovation depends on the coordinated upgrading of technology, institutions, and professional capabilities, and offers a reference path for construction enterprises adapting to the reformed pricing environment.

Keywords

Construction Cost Management; Policy Orientation; Whole-Process Cost Control; Building Information Modeling; Cost Overrun Prevention

References

[1] Flyvbjerg B. What you should know about megaprojects and why: An overview. Project Management Journal, 2014, 45(2): 6-19. [2] Odeck J. Cost overruns in road construction: What are their sizes and determinants? Transport Policy, 2004, 11(1): 43-53. [3] Assaf S A, Al-Hejji S. Causes of delay in large construction projects. International Journal of Project Management, 2006, 24(4): 349-357. [4] General Office of the Ministry of Housing and Urban-Rural Development. Work Plan for Engineering Cost Reform (Jian Ban Biao [2020] No. 38). Beijing, 2020. [5] Wang Y, Ghazali F E M. Effective control measures to minimize cost overrun during construction phase of high-rise residential building projects in Chongqing, China. Archives of Civil Engineering, 2023, 69(3): 79-94. [6] Chen S, Fan X, Cai B. Research on influencing factors and control measures of construction cost overrun in China's expressway projects. International Journal of Fuzzy System Applications, 2023, 12(1): 1-20. [7] Zhang Y. Application of Building Information Modeling in cost control of engineering projects. Proceedings of the Institution of Civil Engineers: Smart Infrastructure and Construction, 2024, 177(2): 83-92. [8] Nsimbe A, Di J. The impact of Building Information Modeling technology on cost management of civil engineering projects: A case study of the Mombasa Port Area Development Project. Buildings, 2024, 14(4): 1175. [9] Azhar S. Building Information Modeling (BIM): Trends, benefits, risks, and challenges for the AEC industry. Leadership and Management in Engineering, 2011, 11(3): 241-252. [10] Zuo J, Zhao Z Y. Green building research: Current status and future agenda: A review. Renewable and Sustainable Energy Reviews, 2017, 82: 1066-1075.