Acceptance of Contemporary Technologies for Cost Management of Construction Projects
Introduction
Contemporary technologies for cost management of construction projects are reshaping the digital landscape of the built environment, offering unprecedented opportunities for efficiency, accuracy, and financial control.
As the construction industry transitions into the era of the Fourth Industrial Revolution (IR4.0), traditional methods of managing project budgets are increasingly viewed as outdated and insufficient for handling modern complexities. This comprehensive analysis explores the findings of a pivotal study published in the Journal of Information Technology in Construction, which evaluates the acceptance levels of seven specific technologies among quantity surveyors and cost managers.
By understanding which tools are readily adopted and why, housing professionals and researchers can better navigate the digital transformation of construction cost management.
The Digital Shift in Construction Cost Control
The management of construction costs is widely recognized as the most critical function for project success. However, the practice has become increasingly complicated due to the dynamic nature of modern constructions, fragmented market relationships, and the vast volume of data that general contractors must process.
While Information and Communication Technology (ICT) was introduced to the industry approximately 40 years ago, its adoption for cost management remains inconsistent.
Despite the clear benefits of digitization, problems such as cost overruns remain inevitable, largely due to a lack of integration between applications and user reluctance to move away from paper-based systems.
To address these challenges, the industry has seen the emergence of contemporary technologies for cost management of construction projects that promise to streamline operations. These technologies aid in improving client satisfaction, reducing teamwork mistakes, and increasing awareness among project participants.
However, the mere existence of these tools does not guarantee their utility. The core issue lies in acceptance: it is the actual users—quantity surveyors, project managers, and site supervisors—who must embrace these resources to optimize work processes.
This study focuses on identifying which of the current IR4.0 technologies are not only relevant but also readily accepted by industry professionals for the specific purpose of cost management.
Evaluating Contemporary Technologies for Cost Management of Construction Projects
The research identified seven key technologies driving the industry from 2016 onwards, analyzing their applications and core benefits for cost management. Understanding the specific role of each technology is essential for evaluating their acceptance.
Building Information Modeling (BIM)
BIM is arguably the most discussed technology in modern construction. It facilitates effective collaboration, model-based cost estimation, and clash detection. For cost management, BIM is applicable in cost estimating and planning at the design stage, quantity measurement for valuations, and the preparation of Bills of Quantities (BOQs).
Studies suggest that BIM can improve cost estimation accuracy to within 3% and reduce the time taken to generate estimates by up to 80%.
Augmented and Virtual Realities (AR/VR)
AR and VR streamline the design process and enhance communication. In terms of cost management, these technologies are used for project inspections, monitoring, and gathering cost data during execution.
They allow for automated measurements and help prevent schedule delays and cost overruns by enabling teams to conduct virtual walkthroughs before physical execution begins.
Mobile Technology
Mobile technology, including smartphones and tablets, facilitates collaboration between office and field teams. It speeds up data retrieval, supports decision-making, and enables real-time monitoring of project costs.
With over 13,000 construction-related apps available, mobile devices are crucial for onsite data collection, tendering, and basic cost calculations.
Internet of Things (IoT)
IoT involves interconnected devices that transfer data without human interaction. In construction, IoT enables smart communication, remote site operation, and machinery maintenance.
For cost management, a connected site saves time and energy, allowing for better control of resources and waste management.
Artificial Intelligence (AI) and Machine Learning (ML)
AI and ML enhance construction data management and productivity. They are powerful tools for managing cost data collection, processing, and reporting.
AI systems can be utilized for real-time project monitoring and have been applied in complex cost modeling, such as predicting life-cycle costs using neural networks.
Drones and Robotics
Unmanned Aerial Vehicles (UAVs) and robotics offer real-time project monitoring and progress evaluation. They automate simple tasks, significantly reducing labor costs while providing better accuracy through multiple sensors.
Drones save time and money by evaluating job sites without the need for scaffolding or exposing technicians to hazardous conditions.
Predictive Analytics
Predictive analytics uses historical data and statistical algorithms to forecast future outcomes. It is a game-changing solution for forecasting construction costs, a principal component of cost management.
By transforming real-time data into actionable information, it enhances the decision-making process regarding budgeting and estimation.
Methodology: Measuring Acceptance Through TAM
To determine which of these contemporary technologies for cost management of construction projects are most accepted, the study employed the Technology Acceptance Model (TAM).
Originally developed by Davis in 1986, TAM suggests that a user’s actual use of a technology is determined by their behavioral intention, which is influenced by Perceived Usefulness (PU) and Perceived Ease of Use (PEOU).
This research extended the traditional TAM by introducing three antecedents as determinants of PEOU:
- Technology Availability (TAv)
- Technology Affordability (TAf)
- Frequency of Use (FU)
Data was gathered via an online questionnaire administered to 349 Quantity Surveyors in Nigeria, a country experiencing rapid infrastructural development. The respondents were highly qualified, with 68% being fully registered professionals and 73% having more than five years of experience.
The data was analyzed using non-parametric statistics, specifically Spearman’s correlations and Kendall’s coefficient of concordance, to evaluate the relationships between the TAM variables for each technology.
Key Findings: The Dominance of Mobile Technology
The statistical analysis revealed significant insights into the acceptance levels of the seven technologies. While all technologies showed some level of positive relationship between the TAM variables, contemporary technologies for cost management of construction projects varied greatly in their correlation strengths.
Mobile Technology Leads in Acceptance
The results unequivocally showed that mobile technology has higher correlation values than any other technology evaluated.
The Kendall’s coefficient of concordance and Spearman’s correlation values for mobile technology were all above 0.6, indicating a high level of agreement among raters and strong relationships between the compared TAM variables. Specifically:
- The correlation between Technology Availability and Perceived Ease of Use was 0.865.
- The correlation between Perceived Usefulness and Technology Acceptance was 0.853.
These "very strong" relationships suggest that quantity surveyors perceive mobile technology as highly available, easy to use, affordable, and useful for cost management. The high acceptance is attributed to the widespread use of mobile devices in other spheres of life, making professionals well-informed and comfortable with the technology.
Furthermore, the proliferation of construction-specific mobile apps has translated many cost management activities into accessible digital formats, reducing paperwork and enhancing accuracy.
Variations in Other Technologies
While mobile technology ranked first, other contemporary technologies for cost management of construction projects showed varying degrees of acceptance. Autonomous equipment (Drones and Robotics) showed strong correlations, particularly in availability and ease of use.
However, technologies like Artificial Intelligence and Predictive Analytics showed weaker correlations. Notably, the hypothesis that Perceived Ease of Use affects Perceived Usefulness was not supported for Internet of Things (IoT) and Predictive Analytics, indicating that professionals may find these technologies useful but not necessarily easy to use, or vice versa, creating a barrier to full acceptance.
Implications for Housing Policy and Industry Practice
The findings have profound implications for housing policy and construction management practices. As governments and private sectors aim to deliver affordable housing and infrastructure efficiently, the adoption of efficient cost management tools is paramount.
The study highlights that the barrier to adopting contemporary technologies for cost management of construction projects is not just financial but also psychological and educational.
Bridging the Skills Gap
The reluctance to adopt certain technologies, such as AI and IoT, stems partly from a lack of technological skills and knowledge among staff. Policy recommendations should therefore focus on training and capacity building.
Educational institutions and professional bodies must integrate these digital tools into their curricula to ensure that future quantity surveyors are proficient in using them.
Prioritizing Mobile-First Strategies
Given the high acceptance of mobile technology, construction firms should prioritize mobile-first strategies for cost management. Investing in robust mobile applications that allow for real-time data collection and transmission can yield immediate improvements in cost control.
This approach leverages existing user familiarity, ensuring higher adoption rates and quicker returns on investment.
Integrating Complex Technologies
For more complex technologies like BIM and AI, the industry must focus on integration and ease of use. The study indicates that while these tools are powerful, their acceptance is hindered by perceived complexity.
Developers of these technologies should focus on user-friendly interfaces and seamless integration with existing workflows to enhance perceived ease of use.
Conclusion
The construction industry stands at a crossroads where digital innovation offers the potential to solve longstanding issues of cost overrun and inefficiency. This analysis of contemporary technologies for cost management of construction projects demonstrates that while a variety of advanced tools are available, their acceptance varies significantly.
Mobile technology emerges as the most readily accepted tool, driven by its availability, affordability, and ease of use. However, other technologies like BIM, AI, and IoT hold immense potential that is currently underutilized due to barriers in usability and skills.
For researchers, students, and housing professionals, the path forward involves a balanced approach: leveraging the high acceptance of mobile technology for immediate gains while investing in the training and integration required to unlock the full potential of more complex digital tools.
By understanding the factors that drive technology acceptance, the industry can move towards a more integrated, efficient, and cost-effective future. The ongoing value of this research lies in its ability to guide strategic investments in technology, ensuring that digital transformation efforts are aligned with the actual needs and capabilities of the workforce.
Ultimately, the successful adoption of contemporary technologies for cost management of construction projects will be a defining factor in the sustainability and profitability of the global construction sector.