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18 contractors‟ current roles in practices ROPRAC would appear to have a significant effect
on the cost management and controlling practices – the CMCPs of project cost during the
construction stage of construction projects.
2.3.8. Requirement for a Robust Method and Tool METOOL
2.3.8.1. Relevant Issues for METOOL
Project cost management and controlling systems concern the monitoring of construction operations including construction process and performance requirements
Kerzner, 2009. Construction processes may include a synchronisation of some factors, e.g., work personnel, function of facilities, and physical activities that can help contractors
directly fulfil the requirement of cost performance related to quantity and quality of works, time of completion, and cost of activities Turney, 1994.
The traditional costing system is a reliable way of estimating direct costs such as material and labour Daly, 2002 rather than indirect overhead costs. A current cost
accounting management approach is reliable for measuring, recording, documenting, and reporting financial transactions of project expenses in order to satisfy senior management
and stakeholders refer to Horngren et al., 1997 and 2005; Glynn et al., 2003; and Drury, 2008. Current cost management and controlling practices focus on monitoring and
assessing the quantity of physical progress, and reporting this assignment to the company‟s accounting department for regular requirements e.g., proposals for monthly payments or
requests for financial supports. The progress report is normally submitted without proper measurement and evaluation on activity progress values versus actual project expenses in
respect of project cost schedules, because there are no necessary obligations to project team management on site. These indicate that there is lack of project progress with less
reliable methods, and inappropriate tools and techniques in practice. This current approach provides unsatisfactory results for improving the project cost management and controlling
practices during construction operations.
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2.3.8.2. Potential Challenges for METOOL
There remain great challenges and opportunities for construction companies who regard creating profits as a top priority Ostwald, 2001 and commonly base corporate
legal systems for generating commercial benefits Skadmanis, 2009. Project benefits could be gradually improved by planning and expending optimum costs, and using
minimum expenses to obtain maximum project benefits Jaya
et al.,
2010c and 2011a. Therefore, cost management and controlling methods, tools and techniques could be
developed to improve the management of project overheads. This area of activity may create important CSFs to be involved to satisfy project managers and construction
companies in order to achieve a successful completion of construction projects.
2.3.8.3. A Group of Important CSFs for METOOL
