CRCS/CCS: An integrated probabilistic construction cost control approach for highway project

The recent focus on improving the performance of construction cost control for highway project in China has led to a demand from industry for approaches that can cope with increasing complexity. Whilst many existing research now providing the methods to control for deviation from cost standards after finding cost variance, other factors such as component cost risk are still widely ignored. CRCS/CCS, an integrated construction cost control approach is presented in this paper. The approach utilizes a stochastic construction cost control system namely CRCS based upon the risk management theory in conjunction with a series of traditional deterministic cost control methods which are used in each project´s stage namely CCS. In CRCS, a probabilistic cost forecast model fore feed the information of construction cost variance and its contributors to activate CCS not just to adjust in feedback but also to prevent cost variance in advance.