CONSTRUCTION COST CONTROL THESIS ABSTRACT This thesis studies the methods followed by the building construction contractors in the Eastern Province of Saudi Arabia to control the project cost as well as the factors that affect the level of control exerted during construction. This study was conducted by series of structured interviews with forty five randomly selected contractors. Results of this study were post-stratified according to the five contractors grades specified by the Agency of Classification of Contractors in Riyadh. It was found that the contractors in the Eastern Province follow a basic logic sequence in cost control. First, they start by setting the required budget as follows: A) Project estimates are either very general and simple or based on unrealistic assumptions. B) Soil reports form the main source of site analysis. C) Work breakdown structure is based on standard item headings predefined at head office. D) Contractors are- unfamiliar with the concept of cost codes. E) A period between 1-4 weeks is most common for short term planning. Second, they measure and report actual costs as follows: A) Charging resources hours is based on personal observations. B) Purchase orders and invoices are mainly used to charge material consumed. C) Systematic procedures for site feedback are lacking. D) Monthly cost statements are the most common tool for cost status reporting. Third, cost variance testing is based on comparing the budgeted vs. the actual cost of work done to date. Finally, the cause(s) of cost variance is investigated by informal methods and incentives form- the most popular corrective action. Regarding the factors that affect the level of control, Company Characteristics, Proje...
