Corrective action recommendation for project cost variance in construction material management

Veronika, Alin, Riantini, Leni S., & Trigunarsyah, Bambang (2006) Corrective action recommendation for project cost variance in construction material management. In Kanok-Nukulchai, Worsak, Munasinghe, Sunil, & Anwar, Naveed (Eds.) The Tenth East Asia-Pacific Conference on Structural Engineering and Construction, August 3-5, 2006, Bangkok, Thailand.


In construction project operation, often there is a project cost variance in terms of the material, equipments, manpower, subcontractor, overhead cost, and general condition. Material is the main component in construction projects. Therefore, if the material management is not properly managed it will create a project cost variance. Project cost can be controlled by taking corrective actions towards the cost variance. The objective of this research paper is to identify the main cause of the cost variance and to recommend the corrective actions. The approach to serve that objective is by conducting surveys to high rise building construction projects in order to identify the cause of project cost variance in material purchasing, and by interviewing experts in order to obtain recommendations in taking corrective actions. Method Analysis used in this research is Delphi method. The result of the research shows that the corrective action towards the variance of the material purchasing cost is actually a preventive action (before process)

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3 citations in Scopus
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ID Code: 6537
Item Type: Conference Paper
Refereed: Yes
Additional URLs:
Keywords: material management, cost variance, corrective action
Subjects: Australian and New Zealand Standard Research Classification > ENGINEERING (090000) > CIVIL ENGINEERING (090500) > Construction Engineering (090502)
Australian and New Zealand Standard Research Classification > BUILT ENVIRONMENT AND DESIGN (120000) > BUILDING (120200) > Building Construction Management and Project Planning (120201)
Divisions: Past > QUT Faculties & Divisions > Faculty of Built Environment and Engineering
Copyright Owner: Copyright 2006 School of Engineering and Technology, Asian Institute of Technology
Deposited On: 16 Mar 2007 00:00
Last Modified: 10 Aug 2011 18:05

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