A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Development of zero-based budgeting approach for multinational construction contractors
https://orcid.org/0000-0002-8616-799X
https://orcid.org/0000-0002-4101-8560
Cost overruns remain a persistent problem in the construction industry. Although various cost management strategies have been implemented, innovative approaches are still required. Therefore, the authors attempted to introduce and test a new cost management strategy for the construction industry.
Zero-based budgeting (ZBB) is one such method whose effectiveness has been proven in different industries over many years. Therefore, the authors initially developed two different frameworks related to the integration of ZBB into a multinational construction contractor and the application process of ZBB for a construction project in this study. Then, the effectiveness and feasibility of the proposed frameworks are tested via an actual field study in a mega construction project.
The results show savings of 0.81% of the total project budget and 4.74% of the focused cost items by following the ZBB framework compared to the traditionally estimated project budget. The feedback received from the employees in the construction company shows that ZBB could be efficiently implemented during ongoing construction projects.
The authors believe that implementing new cost management strategies such as ZBB will open doors to deal with the complex cost overrun issues and improve construction cost performances.
This manuscript is the first actual application of the ZBB cost management approach in the construction industry.
Development of zero-based budgeting approach for multinational construction contractors
https://orcid.org/0000-0002-8616-799X
https://orcid.org/0000-0002-4101-8560
Cost overruns remain a persistent problem in the construction industry. Although various cost management strategies have been implemented, innovative approaches are still required. Therefore, the authors attempted to introduce and test a new cost management strategy for the construction industry.
Zero-based budgeting (ZBB) is one such method whose effectiveness has been proven in different industries over many years. Therefore, the authors initially developed two different frameworks related to the integration of ZBB into a multinational construction contractor and the application process of ZBB for a construction project in this study. Then, the effectiveness and feasibility of the proposed frameworks are tested via an actual field study in a mega construction project.
The results show savings of 0.81% of the total project budget and 4.74% of the focused cost items by following the ZBB framework compared to the traditionally estimated project budget. The feedback received from the employees in the construction company shows that ZBB could be efficiently implemented during ongoing construction projects.
The authors believe that implementing new cost management strategies such as ZBB will open doors to deal with the complex cost overrun issues and improve construction cost performances.
This manuscript is the first actual application of the ZBB cost management approach in the construction industry.
Development of zero-based budgeting approach for multinational construction contractors
https://orcid.org/0000-0002-8616-799X
https://orcid.org/0000-0002-4101-8560
Cost overruns remain a persistent problem in the construction industry. Although various cost management strategies have been implemented, innovative approaches are still required. Therefore, the authors attempted to introduce and test a new cost management strategy for the construction industry.
Zero-based budgeting (ZBB) is one such method whose effectiveness has been proven in different industries over many years. Therefore, the authors initially developed two different frameworks related to the integration of ZBB into a multinational construction contractor and the application process of ZBB for a construction project in this study. Then, the effectiveness and feasibility of the proposed frameworks are tested via an actual field study in a mega construction project.
The results show savings of 0.81% of the total project budget and 4.74% of the focused cost items by following the ZBB framework compared to the traditionally estimated project budget. The feedback received from the employees in the construction company shows that ZBB could be efficiently implemented during ongoing construction projects.
The authors believe that implementing new cost management strategies such as ZBB will open doors to deal with the complex cost overrun issues and improve construction cost performances.
This manuscript is the first actual application of the ZBB cost management approach in the construction industry.
Development of zero-based budgeting approach for multinational construction contractors
Development of zero-based budgeting approach
Kazar, Gokhan (author) / Mutlu, Ugur (author) / Tokdemir, Onur Behzat (author)
Engineering, Construction and Architectural Management ; 30 ; 5217-5232
2023-11-28
16 pages
Article (Journal)
Electronic Resource
English
Contractors' financial budgeting using computer simulation
| Taylor & Francis Verlag | 1994
Contractors' financial budgeting using computer simulation
| Online Contents | 1994
A survey of contractors' corporate planning and financial budgeting
| Taylor & Francis Verlag | 1994
| British Library Online Contents | 2015