Quantifying combination effects of project management practices on cost performance

Abstract

This paper presents an analysis method that quantifies the relationship between project management practices and the cost performance of construction projects. The analysis method includes a series of analysis procedures and methods: data measurement and transformation, contingency table analysis, logistic regression, and a composite index. Step-by-step analysis procedures and methods are described along with the data obtained from 143 owner projects to examine the effect of nineteen project management practices on cost performance. The analysis method uncovers the minimum implementation levels of project management practices for better cost performance, and quantifies the combined effects of project management practices on cost performance varied by their implementation levels. The analysis results generate specific and quantitative information used in implementing project management practices for better cost performance. This information will help practitioners achieve improved cost performance in the most effective and efficient way. The analysis method designed with a series of statistical methods makes it possible to produce useful quantitative information for the implementation of project management practices.