The Cost Drivers of Infrastructure Projects: Definition, Classification, and Conceptualization
Publication: Journal of Construction Engineering and Management
Volume 149, Issue 11
Abstract
Reducing cost is a critical objective for project teams. However, unlike the research on topics such as cost overruns, cost reduction literature is limited. Previous studies have primarily examined cost estimation and reduction models or high-level cost reduction strategies. Therefore, it is necessary to identify specific actions that project teams can take to reduce cost. By focusing on the “cost drivers” of infrastructure projects, researchers have a practically relevant lens through which cost reduction can be promoted and studied. Thus, this integrative literature review establishes a foundation for infrastructure project cost drivers knowledge, addressing three research questions revolving around deriving a definition, classification scheme, and conceptual framework of cost drivers. This paper first produces a definition of cost drivers by critically analyzing cost driver concepts and perspectives and existing definitions. Second, cost drivers were drawn from relevant articles and classified to produce a taxonomy of 14 key cost drivers. Third, a conceptual framework (two-by-two matrix) of cost driver types was developed to acknowledge the influence project teams can have. Finally, a research agenda proposes further investigation in cost drivers and reduction research regarding each cost driver, apt research methods, and necessary project contexts. This paper’s theoretical contribution is a deepening of infrastructure project cost drivers knowledge using a definition, taxonomy, and conceptual framework. The practical contribution is a deepened awareness of the key opportunities for—and threats to—cost reduction for project teams, as well as knowledge of those cost drivers that they actually have an influence over, that is, to reduce their project’s cost.
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Data Availability Statement
All data, models, and code generated or used during the study appear in the published article.
Acknowledgments
The authors would like to thank the funder of this research, the National Nuclear Laboratory (NNL), for making it possible to conduct this research (Research Grant NNL/UA/115). In particular, the authors would like to thank Mr. Karl Sanderson from the Nuclear Decommissioning Authority (NDA) for his valuable feedback on earlier versions of this manuscript. The ideas and opinions in this paper represent only the point of view of the authors, and only the authors are responsible for any omission or mistake. This paper should not be taken to represent in any way the point of view of NNL, NDA, or any other organization either in the UK or abroad.
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Journal of Construction Engineering and Management
Volume 149 • Issue 11 • November 2023
Copyright
© 2023 American Society of Civil Engineers.
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Published online: Aug 25, 2023
Published in print: Nov 1, 2023
Discussion open until: Jan 25, 2024
ASCE Technical Topics:
- Benefit cost ratios
- Bibliographies
- Business management
- Construction costs
- Construction engineering
- Construction management
- Driver behavior
- Engineering fundamentals
- Financial management
- Information management
- Infrastructure
- Personnel management
- Practice and Profession
- Project management
- Team building
- Terminology and definition
- Traffic engineering
- Transportation engineering
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