Application of ABCM to Construction Project

Construction project has long been suspected to fail to provide information. Incomplete information provided by cost management system has the potential to misdirect decision making by construction project manager. Construction project need a cost management system that can provide effective information about their project, markets, customers, and counterpart. Through comparison of activity-based cost management (ABCM) and traditional cost management, an ABCM model of construction project that integrate both traditional cost management and ABCM´s advantages was constructed. Because of lacking activity coding system and foundation database, the application of ABCM to construction project is not perfect. This paper not only provides an activity-based cost management model but also gives directions for Construction Company how to set up an unblocked, reliable information channel and how to collect material.