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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Main Author: Søren Lindhard
Format: Article
Language:English
Published: UTS ePRESS 2024-09-01
Series:Construction Economics and Building
Subjects:
Online Access:https://epress.lib.uts.edu.au/journals/index.php/AJCEB/article/view/8417
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author Søren Lindhard
author_facet Søren Lindhard
author_sort Søren Lindhard
collection DOAJ
description 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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spelling doaj-art-2987b78a9df24c09ae300d8c14f0367a2024-12-18T05:10:04ZengUTS ePRESSConstruction Economics and Building2204-90292024-09-01244/510.5130/AJCEB.v24i4/5.8417Danish contractor’s application of the budgetSøren Lindhard0{'en_US': 'Aalborg University'} 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. https://epress.lib.uts.edu.au/journals/index.php/AJCEB/article/view/8417Contractors, Budget, Cost Management, Economy, Construction Management
spellingShingle Søren Lindhard
Danish contractor’s application of the budget
Construction Economics and Building
Contractors, Budget, Cost Management, Economy, Construction Management
title Danish contractor’s application of the budget
title_full Danish contractor’s application of the budget
title_fullStr Danish contractor’s application of the budget
title_full_unstemmed Danish contractor’s application of the budget
title_short Danish contractor’s application of the budget
title_sort danish contractor s application of the budget
topic Contractors, Budget, Cost Management, Economy, Construction Management
url https://epress.lib.uts.edu.au/journals/index.php/AJCEB/article/view/8417
work_keys_str_mv AT sørenlindhard danishcontractorsapplicationofthebudget