Portfolio Europeo para las Lenguas (PEL)

Project managers can assess project benefits according to the cost savings or cost deficits, based on the cost measurement criteria (refer to Figure 3-2: the structure of the ABCC model). A spreadsheet in excel format is designed as appropriate tools and techniques of the CMCPs for accounting, scheduling, controlling, and managing project overheads. The CMCPs’ tools and techniques facilitate the implementation of the ABCC model through cost performance measurements of detailed overhead cost accounts and clear relationships between Overhead Costs Scheduled (OCS), Activity Progress Values (APV), and Actual Project Expenses (APE).

In order to make well informed decisions and take necessary action with regard to the ABCC model, project managers can follow the three measurement criteria for

91 cost management and controlling practice – the CMCPs of project overheads to increase effectiveness:

 If activity progress values are greater than actual project expenses (APV >

APE): Project VER>1, it means an increased positive cost saving for the project benefits. Therefore, the related activities most probably provide some cost advantages, even though it requires continuous attention to improve. Then, these particular activities can be recommended/ directed for moving forwards.

 If activity progress values are equivalent to actual project expenses (APV = APE): Project VER=1, it means the initial profit is stagnant (refers to the viewpoint of contractors, but means nothing for the clients). The related activities nevertheless provide less attractiveness and a lack of project managers’ creativity for project benefits. Then, these particular activities deserve more careful and constant managerial attention before being recommended.

 If activity progress values are lower than actual project expenses (APV < APE): Project VER<1, it indicates either cost overrun, or there is a deficit in overhead costs and this substantially decreases the project benefits. Therefore, the related activities may have suffered some cost disadvantages. These particular activities must be given careful and special attention as to whether they require preventative, corrective, or immediate action depending on each relative level of cost deficit.

The level of project cost deficit or saving forecasted in respect of the total budget estimated at completion can be resolved by implementing a Worst Case Scenario (WCS). The WCS can be implemented in project practice in order to take managerial decisions through examining the status of cost performance indices during the construction operation. The WCS decision making method considers the

92 lowest favourable savings or the highest unfavourable deficits (refer to Section 5.4.5.5).

3.7.

Summary

This chapter has presented the process of developing the ABCC model. The relationships between the problem situation, aim, and objectives, are abstracted in the conceptual research model to solve the problem that involves the CSFs, the ABC system, the ABCC model, and the CMCPs of construction project overheads (refer to Figure 3-1). The ABCC model is restructured in Figure 3-2 with the explanation in Section 3.4. The cost measurement model (Figure 3-4) highlights the process of differentiating the direct and indirect resources. When the project is awarded, the construction project overheads stem from the project contract price. Then the role of the ABCC model is to measure the overhead cost accounts through the ABC accounting features (overhead cost accounts are assigned to activity cost pools and cost objects), in order to examine the implementation of the CMCPs’ tools and techniques of construction project overheads. The ABCC model and the CMCPs are documented into project databases for future projects. Having discussed the three related chapters: introduction; literature synthesis; and development of the ABCC model, the following chapter elaborates the research methodology.

93

CHAPTER 4.

RESEARCH METHODOLOGY

4.1.

Introduction

The term research is defined by Walliman (2005, p.6) as: ‘... collecting masses of information, delving into theories, and producing new products’. Information and data are not merely collected and assembled to move facts from one situation to another. The research is ‘...any form of disciplined inquiry that aims to contribute to a body of knowledge or theory’ (Fellows and Liu, 2008, p.4). It is expected that a process of inquiry and investigation should be designed methodologically and systematically to increase knowledge (Collins and Hussey, 2003). Methodological assumptions are focused on the best means of acquiring knowledge about the natural world (Denzin and Lincoln, 2005). However, the process of research should be described clearly to meet the research aim and objectives.

Figure 4-1: The Systematic Research Process ‘Onion’ Source: Modified from Saunders et al (2009)

Data collection and data analysis Cross-sectional Longitudinal Mono methods Multi methods Mixed

methods Action research

Grounded theory Case study Survey Ethnography Experiment Archival research Deductive Inductive Positivism Realism Interpretivism Pragmatism Philosophies Approaches Strategies Choices Time horizons Techniques and Procedures

94 Saunders et al (2007 and 2009) explained the detailed procedures of research methodology using the research process ‘onion’ (Figure 4-1). The six layers of the research onion do not clearly position the branches of research philosophy such as ontology, epistemology, and axiology. The philosophical domains of the research onion has mixed implicit branches of different natures in the first layer, such as: ontology (e.g., realism), and epistemology (e.g., positivism, realism, pragmatism, and interpretivism). The other layers are perceptible as axiology which can help researchers understand the role of values and meaning, purpose and the specific domain of the research.

The following sections will discuss the research methodology adopted for this research, and justify primary aspects of the research process, e.g., research philosophy, research strategy, research design, research methods, and research techniques and procedures.