Construction managers confront many problems. Still, this industry plays a vital role in thehealthy growth of the economy of many countries throughout the developed and developingworld. Effective management of construction projects has been a major research subject inthe last century due to the importance of this industry and the amount of money it attracts.One critical problem facing construction managers is inefficient cost control procedures,particularly in developing regions of the world.Since the end of the Second World War, the use of sophisticated cost control procedures inmanaging and controlling project costs have been accepted and applied widely in many partsof the world such as the United States and the United Kingdom. These procedures areimportant in a growing economy to ensure delivery of projects on time and within budget,but they are equally important during an economic recession when project viability becomesmarginal.In the early 1990s, the construction industry in Thailand played a critical role during aperiod of strong economic growth. Construction cost control was not a major concern asdevelopers rushed to capitalize on the booming market. In the late 1990s, the economy ofSoutheast Asia sank into recession. Project cost control became a critical issue for thedevelopers as well as the construction companies in managing construction projects. Asignificant number of projects in Thailand in the late 1990s had significant cost overruns.Cost overruns had been a problem during the high growth period in the early 1990s, butdemand overcame the problems created by poor cost control. The use of good project costcontrol procedures has become a concern of project investors and construction companies inThailand since the recession of the late 1990s. Project managers and developers are nowaware that the failure of a cost control system or use of a poor system can lead to projectfailure. Project cost control methods need to be improved in Thailand to ensure that ownersand contractors manage construction costs and meet project goals on time and withinbudget.In this study, project cost controls in the United States and Thailand will be examined.These procedures will be analyzed to identify their similarities and differences. The causesand solutions for cost overruns in the two countries will also be examined. The results fromthe study will illustrate how the project cost control procedures used in the United States canbe applied to the construction industry in Thailand to improve the procedures used by Thaicontractors.
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