Danish contractor’s application of the budget
The construction contractors compete in a low-profit industry, this makes cost-performance and the accuracy and the application of the budget critical. Despite the importance of a highly effective cost management, no studies have currently examined how construction contractors apply the budget. To...
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| Format: | Article |
| Language: | English |
| Published: |
UTS ePRESS
2024-09-01
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| Series: | Construction Economics and Building |
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| Online Access: | https://epress.lib.uts.edu.au/journals/index.php/AJCEB/article/view/8417 |
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| Summary: | The construction contractors compete in a low-profit industry, this makes cost-performance and the accuracy and the application of the budget critical. Despite the importance of a highly effective cost management, no studies have currently examined how construction contractors apply the budget. To determine how construction contractors apply budgets, a questionnaire study has been conducted, which included 128 construction professionals, from varying job-positions of whom 67 completed it, corresponding to 52.3%. The participants rated their budget application with regards to six categories. Afterwards a statistical analysis was applied to identify ranks, differences and correlations between categories and across job-positions. A Kendall’s Tau correlation test revealed a positive correlation between the categories and their application, and a Friedman’s Rank test identified the following rank between the categories: Management, Control, Planning, Motivation, Communication and Coordination. Finally, a multinomial regression analysis revealed that a higher hierarchical position entails a higher application of the budget for all categories but motivation. The new insights to budget application are highly relevant for construction professionals carrying out cost-management. The findings can be to make a better fit between application and the presentation of the budget, thereby strengthening the managerial capability of the budget.
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| ISSN: | 2204-9029 |