Enhancing accuracy in construction overhead cost estimation: a novel integration of activity-based costing and building information modelling

What is it about?

Managing costs is really important in construction projects, especially the overhead costs, like staff expenses, that can be hard to measure. This study introduces a new approach that uses activity-based costing (ABC), a type of accounting, and building information modeling (BIM), a way of representing buildings digitally, to assign these hard-to-measure costs to different parts of the project. This helps us understand the true cost of the project. By using ABC and BIM, we've created a method to measure project cost performance more accurately. Our results show that this method improves accuracy by over 9%. This is important because it helps project managers make better decisions based on more precise cost information, leading to better project results. This study is a significant step in addressing the problems with estimating these costs and presents a new solution that could really improve the way we manage construction projects.

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