Prioritize and Identify Main Influencing Causes for Cost Control and Optimal Cost Reduction Technique in Mega Construction Projects

Abstract

The earned value management is a leading technique in monitoring and analyzing project performance and project progress. The main objectives of this paper are 1) Identify and prioritize the main problems for lack of techniques which cause poor management of cost control with poor site organization and inadequate supervision. 2) Demonstrate the modified Activity Based Costing system as the best choices for cost accounting approach for determining construction project accurate cost. To fill the gap of limited research for studying factors inhibiting the ability of contractors to effectively control their projects, a survey was conducted on 22 construction project organizations. It was noted that most project managers and contractors in Egypt find difficulty in controlling project costs due to problems that include Change order, Changes in the design, Errors in the design, current economic situation deterioration, Delay project and Rising prices of materials. To improve capital project cost schedule and predictability using a project control system for monitoring and predicting the