Factors Affecting the Cost Management of Iraqi Construction Firms

Abstract

Cost management refers to the procedures that must be followed to ensure that the project is accomplished on time and on budget. The goal of this study is to identify the main factors that affect cost compliance and to assess how relevant these factors are from the perspectives of clients, contractors, and consultants in construction firms in Iraq. For the purpose of this study, 100 structured questionnaires were distributed to clients, contractors, and consultants on building sites throughout the study area by using the survey approach. The Relative Importance Index (RII) technique was used for the analysis. It has been determined that the factors potentially affecting cost management in construction firms should be taken into consideration during the planning, design, tendering, and construction stages to accomplish the project within the specified time and cost. Twenty factors that affected the performance of construction firms in Iraq were identified. The results revealed the most affecting factor was poor management/poor coordination between the contracting company and the authorities involved, followed by the nationality of workers, structural materials damaged during storage, the absence of places designated for storing materials, lack of personnel specializing in devices and equipment, changing labor and material prices as a result of political changes, lack of technical staff, length of the project period, mismatch designs with execution works in site, and changes in orders. The study concludes by stating that there is not an efficient procedure in Iraq to control cost management.