Integration of Cost and Work Breakdown Structures in the Management of Construction Projects

Abstract

Scope management allows project managers to react when a project underperforms regarding schedule, budget, and/or quality at the execution stage. Scope management can also minimize project changes and budget omissions, as well as improve the accuracy of project cost estimates and risk responses. For scope management to be effective, though, it needs to rely on a robust work breakdown structure (WBS). A robust WBS hierarchically and faithfully reflects all project tasks and work packages so that projects are easier to manage. If done properly, the WBS also allows meeting the project objectives while delivering the project on time, on budget, and with the required quality. This paper analyzes whether the integration of a cost breakdown structure (CBS) can lead to the generation of more robust WBSs in construction projects. Over the last years, some international organizations have standardized and harmonized different cost classification systems (e.g., ISO 12006-2, ISO 81346-12, OmniClass, CoClass, UniClass). These cost databases have also been introduced into building information modeling (BIM) frameworks. We hypothesize that in BIM environments, if these CBSs are used to generate the project WBS, several advantages are gained such as sharper project definition. This enhanced project definition reduces project contradictions at both planning and execution stages, anticipates potential schedule and budget deviations, improves resource allocation, and overall it allows a better response to potential project risks. The hypothesis that the use of CBSs can generate more robust WBSs is tested by the response analysis of a questionnaire survey distributed among construction practitioners and project managers. By means of structural equation modeling (SEM), the correlation (agreement) and perception differences between two 250-respondent subsamples (technical project staff vs. project management staff) are also discussed. Results of this research support the use of CBSs by construction professionals as a basis to generate WBSs for enhanced project management (PM).

Information workflow proposal for integrating cost estimating, scheduling, and monitoring with BIM in SMEs

“…The work packaging model (WPM) is the most comprehensive way to integrate cost and schedule data as it eliminates the need for a cost breakdown structure (CBS) and adds cost data to the WBS (CHO; RUSSELL; CHOI, 2013). The integration of the CBS and the WBS allows the construction of a matrix to map the progress of activities and the location of each element of the project (CEREZO-NARVÁEZ et al, 2020). This unified hierarchy of data storage, universal for each specialist, allows the specifics of each section of the project to be taken into account, thus resulting in the storage of structured data with less inconsistency and duplication of information (HONCHARENKO et al, 2020).…”

“…A critical problem in today's 3D BIM models is the discrepancy between the analytical structure of the element and the WBS of the project schedule (CEREZO-NARVÁEZ et al, 2020). Despite the BIM 4D capability to facilitate the team's generation of information, such as start and end dates of the elements and their criticality and visualization of the construction project over time (UMAR et al, 2015), the simulation requires multidisciplinary contributions, a significant project scope, and schedule information so project participants can develop and refine the modeling process (FISCHER et al, 2005;ISIKDAG;UNDERWOOD, 2010).…”

“…Several studies have used BIM to facilitate the integration of planning and cost estimating processes (CHEN et al, 2013;SCHEER et al, 2014;FAN;WU;HUN, 2015;JRADE;LESSARD, 2015;FAN et al, 2016;WANG et al, 2016;D'AMICO et al, 2019;WANG et al, 2020;CEREZO-NARVÁEZ et al, 2020;among others). Of these studies, some have obtained successful results by solving integration issues and defining certain requirements, such as using a standard work breakdown structure (WBS) for a work package integrated model or suggesting a single platform for integration.…”

Measuring the Impact of Scope Changes on Project Plan Using EVM

“…Content may change prior to final publication. [34] Cumulative Flow Diagram with some metrics [35] EVM & CPM [36] EVM & Use Case Point [37] EVM & WBS [38] CBS & WBS [39] Control Chart & EVM [40] level or at the product level. To measure the progress with multiple releases, the author identified each release (using sprint) in the project backlog and estimated the performance of the project at the end of each sprint when actual sprint velocity and actual costs are known [27].…”

“…Although, WBS is used for time and CBS (Cost Breakdown Structure) is used for budget of the project. jointly they are used to increase the performance of the project [39]. However, WBS uses deliverable information and limited to incorporating the volatile nature of scope as requirements could not certainly belong to WBS.…”