Influence of Project Delivery System and Payment Method on Project Cost Performance

Abstract:

Based on three indicators of rework cost,change cost and cost growth,data from 181 projects were analyzed through T test and analysis of variance.The results show that considering project delivery method,DB method has a significantly lower cost growth in comparison to DBB method,with a lower rework cost and change cost also,though not significant.In respect of Payment method,cost growth is the lowest in lump sum contract through negotiation with a mean value of -1.97%,and the highest in unit price contract with a mean value of 10.70%.Taking these two aspects into consideration together,projects with DB method and lump sum contract through negotiation have the lowest cost growth,accompanied with the highest change cost,which should draw project participants’ attention.