Factors driving success of cost management practices in integrated project delivery (IPD)

Faris Ali Khairy Elghaish, M. Reza Hosseini, Saeed Talebi, Sepehr Abrishami, Igor Martek, Michail Kagioglou

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Integrated project delivery (IPD) is a mode of project procurement recognised as facilitating superior project performance. However, this success is contingent on effective cost management practices that share cost data with all project stakeholders in an accurate, timely and transparent manner. Despite an extensive literature on aspects of cost management, none identifies the essential ingredients required of an effective cost management system, sufficiently robust to support successful IPD projects. Candidate cost management augmenting practices are drawn from the literature, and presented for scrutiny in questionnaire form, to fifty IPD experienced experts, based in the USA, UK and Australia. Findings reveal activity-based costing (ABC) to be effective at identifying overhead costs and creating accounting transparency. Similarly, earned value management (EVM), in combination with ABC, is effective at developing mathematical models for equitable risk-reward distribution. Moreover, web-based management systems, as supported by Building Information Modelling (BIM), are effective at generating trust and collaboration on which IPD success depends. A questionnaire survey using purposive sampling was conducted to assess the factors driving success of implementing IPD regarding cost management process. The contribution to knowledge made by this paper is in identifying requisite support mechanisms essential to elevate traditional cost management practices to the higher standard needed to ensure IPD delivery success.
Original languageEnglish
Article number9539
Number of pages10
Issue number22
Publication statusPublished - 16 Nov 2020


  • construction
  • risk-reward sharing
  • alliancing
  • partnerships
  • cost estimation
  • 5D BIM
  • web-based systems
  • ICT cost data
  • digitalisation


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