Project Management Journal

Construction cost variance in construction projects due to

contractor

Journal: Project Management Journal

Manuscript ID Draft

Manuscript type: Research Article

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Topic Area: Monitoring and Control, Program management

Research Methods: Survey, Field study

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Page 1 of 70 Project Management Journal

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Construction Cost Variance in Construction Projects Due to Contractor
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6 “Applied Study Construction Projects in Tripoli City”
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8 By: KHALED SALEH MUKHTAR ALAMMARI
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10 Supervisor: ZAIDAN ALI HATUSH, Ph.D.
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13 1 Abstract
14 The study aimed to assess the extent to which the implementing authorities of construction
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projects in the city of Tripoli apply cost management processes, represented in the axis of cost
17 estimation, the axis of determining the budget, and the axis of cost control, by following the
18 descriptive approach and the analytical approach, where the study community consisted of
19 project managers and engineers working in the implementing agencies, and the sample was taken
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20 in a simple random way, and after distributing (60) questionnaires to the study sample, (45) valid
21 forms for statistical analysis were retrieved. To analyze the data collected from the sample of the
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study, and to achieve the objectives of the program, the computer was used and the program of
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24 statistical packages for the social sciences (SPSS) was used, where percentages, arithmetic
25 averages, and standard deviations were used, and multiple regression analysis was used to
26 determine the total partial contribution of the study fields to explain the variation in the study
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27 axes (cost estimation, budget determination, Cost control) This study concluded a set of results,
28 the most important of which are the following:
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30 1- The level of application of the implementing agencies for cost management operations in
31 construction projects within the city of Tripoli is limited, according to the result of the scale
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(applied to some extent).
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2- According to the results of the multiple regression analysis, the variables (the field of
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36 estimating quality costs in the project, the field of estimating the administrative expenses of the
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37 project, the field of estimating the costs of risks in the project) have explained about 91% of the
38 variation in the cost estimate axis.
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40 3- According to simple regression analysis, the variable (cash flows in the project) has explained
41 about 53% of the variance in the axis of determining the budget.
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43 4- According to the results of multiple regression analysis, the variables (the field of use of
44 follow-up tools, the field of comparison and analysis at the level of activities and work packages,
45 and the field of comparison and analysis at the level of control accounts) have explained about
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93% of the variance in the axis of cost control.
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Keywords: Cost Management, Estimate Costs, Determine Budget, Control Costs
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52 2 Introduction
53 The construction sector is one of the most important sectors in terms of activity rates and
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its overlap with the rest of the other economic sectors, as it provides job opportunities to absorb
56 labor, especially local, and during the past years, the Libyan state has monitored planning efforts
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3 for development in the infrastructure, productivity, and service sectors, and in order to achieve
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the quantitative goals of these plans, it required contracting for the implementation of large
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6 numbers of construction projects in which national companies had a share of participation, and
7 by increasing the number and sizes of these projects, the weakness of the implementing agencies
8 appeared in administrative terms. The lack of qualified technical and specialized personnel, as
9 well as the lack of proper planning, implementation and follow-up processes, has negatively
10 affected the implementation of these projects, leading to their faltering and deviation from the
11 budgets allocated for their implementation and their delay in time plans.
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13 Based on the close relationship between project management's planning, organization,
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direction and control of enterprise resources and the achievement of the desired project
16 objectives, successful project management is based on achieving project objectives within the
17 approved cost limits, the required level of performance, using allocated resources efficiently and
18 effectively, and achieving project stakeholder satisfaction. [1]
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20 In fact, the deviation of the actual cost from the planned is common in construction
21 projects, and occurs cumulatively during the implementation of the project, so it is necessary to
22 apply cost management, because it includes managing the processes required to ensure that
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project work is completed within the approved budget, evaluating any changes that occur to it, as
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a result of changes in the project scope, and setting a new budget baseline when necessary [2].
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There are studies that dealt with the causes and factors causing cost deviation in
28 construction projects, where a study [3] showed that one of the reasons for exceeding the cost is
29 that the contractor provided prices that are not studied accurately at the beginning of the contract,
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30 and a study [4] showed that erroneous estimates of the estimated cost are one of the reasons for
31 exceeding the cost, as well as a study [5] showed that the fluctuation in the prices of raw
32 materials and building materials is one of the reasons for exceeding the cost. Also, the delay of
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the owner in disbursing the extracts to the contractor is one of the reasons for the increase in the
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35 cost in construction projects according to a study [6], and the lack of follow-up and cost control
36 is the most common factor associated with increasing the profit margin in construction projects
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37 according to a study [7]

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39 From here, the researcher believes that the application of cost management processes
40 from: developing a plan, estimating costs, determining the budget, and controlling the cost in the
41 planning and implementation stages of construction projects Hence, it is clear that there is a lack
42 of previous local studies, as they did not address the extent to which the implementing agencies
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apply cost management processes in construction projects, and since one of the objectives of
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45 scientific research is to start from where others ended, in order to clarify the ambiguity, detail the
46 total, collect the dispersed, or complete the missing [8], so it was necessary to know in some
47 detail the extent to which the implementing agencies apply cost management processes in
48 planning and implementing construction projects, and compare it with what is stipulated in the
49 guide Knowledge of project management in Chapter VII on cost management, by following the
50 descriptive approach and the analytical approach, and using the questionnaire tool to inquire
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about the reality of cost management, in order to identify deficiencies and defects in its
53 application, which represents the research problem.
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3 Literature review
5 Previous studies related to the variables of the current study such as [4], [5] as well as [6],
6 [9], [10] showed a number of reasons and factors that led to the deviation of the actual cost from
7 the planned cost in construction projects, and therefore the research problem is that there is an
8 urgent need to identify shortcomings and shortcomings in the process of estimating the financial
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resources necessary to implement project activities and the process of controlling costs,
11 including the comparison it contains. Analyze the project budget spent with the value of the work
12 performed. study [11] was the most prominent of its results Failure to put in place the necessary
13 precautions to confront emergencies and potential risks, delays in paying compensation for
14 citizens’ real estate ownership, poor planning in schedules of quantities and specifications, and
15 failure to employ engineering management tools and mechanisms; To choose the appropriate
16 contractor and project manager, as well as new regulations, laws, and administrative routine. One
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of the reasons for increasing costs, and [12] The most prominent results were that the variable
19 cost of transporting construction materials and equipment had the highest arithmetic mean,
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20 followed by the variable of fluctuation in prices of construction materials and equipment, and
21 followed by the variable availability of a financial flow plan at the implementing agency, in the
22 financial aspects group. The results of a study [13] also showed the presence of (20) factors
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affecting the cost control process collected from personal interviews with experts, and they were
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arranged according to the relative importance index, including: the factor of change orders, the
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26 factor of changes in designs and design errors, the factor of the economic situation of the
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27 country, the factor of high prices of construction materials, the factor of project delay and the
28 factor of inaccurate cost estimates. The results of applying the activity-based cost (ABC) method
29 in the case study showed a clear effect, and there is a discrepancy in estimating the cost of
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30 overhead activities compared to traditional methods of cost estimation, which leads to obtaining
31 a better price for tenders, The study recommended the adoption of the activity-based cost (ABC)
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method to obtain more accurate estimates of the cost of activities in the project.
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The results of a study [14] also showed that factors affecting cost management in
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36 construction projects include changes in designs, weak management on site, delayed payment of
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37 dues to the implementing agency by the owner, and fluctuation in the prices of construction
38 materials. As for the year 2020, the results of a study [15] showed that the factor of shortage of
39 construction materials and their availability, and the factor of shortage of construction equipment
40 and its spare parts from the group of external factors had the highest value for the relative
41 importance index in the general ranking, followed by the factor of accelerating the pace of work
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required of the owner, followed by the factor of changes that The scope of work, specifications,
44 or construction materials are changed by the owner from the group of factors related to the
45 owner, followed by the factor of errors during implementation and the factor of lack of skilled
46 labor from the group of factors related to the contractor. The results of the study also showed that
47 fluctuation in raw material prices, weak project management, and weak cost control and control
48 are factors causing increased costs in construction projects in Sarawak, Malaysia.
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50 While the results of a study [10] in 2020 showed that the factor of the level of experience
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of the cost estimation engineer had the highest value for the relative importance index in the list
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53 of factors affecting the cost estimation process in the group of factors related to evaluating the
54 cost estimation process, followed by the factor of the possibility of obtaining a database for
55 similar projects, followed by The factor of accuracy of the information collected from the site
56 before carrying out the estimation process, followed by the factor of the procedure followed in
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3 updating information in the cost estimation process, followed by the factor of accuracy of the
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assumptions used in the cost estimation process.
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The factor of prices of construction materials and their availability received the highest
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8 value of the relative importance index in the list of factors affecting the cost estimation process
9 in the group of market factors and external factors, followed by the factor of fluctuation of the
10 exchange rate of the local currency, followed by the factor of the availability and productivity of
11 labor and construction equipment, followed by the factor of the economic situation of the
12 country.
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4 Methodology
17 In order to achieve the objectives of the study, the descriptive approach and the analytical
18 approach were followed to describe the phenomenon that is the subject of the study, analyze its
19 data, and determine the relationship between its variables and the opinions that are presented
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20 about it In order to reach the results of the study. [8]Defines the descriptive method as the
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method in which the researcher describes a particular phenomenon, and then analyzes its
23 characteristics and the factors affecting it. Likewise, [16] defined the descriptive method as the
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24 method used to study and clarify the characteristics of the phenomenon, or an interpretation of an
25 existing situation. In fact and determine their relationship within the framework of the variables
26 surrounding them.
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28 4.1 Personal interviews:
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30 The practical study relied on conducting personal interviews with some project
31 managers and engineers working for agencies implementing construction projects to
32 find out some data related to the study.
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34 4.2 Questionnaire design
35 It was designed to evaluate the extent to which implementing agencies apply cost
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management processes in planning and implementing construction projects, based on three main
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38 axes, as stipulated in the Project Management Knowledge Guide (PMBOK), which are as
39 follows:
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41 1- The first axis: estimating the costs of the project, which aims to estimate the
42 financial resources necessary to complete the project work, and was measured in
43 statements from (1 to 22) distributed over six sub-areas: (the field of developing a
44 work breakdown structure, the field of resource planning in the project, the field of
45 estimating the direct costs of resources, the field of estimating the administrative
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expenses of the project, the field of estimating the costs of risks in the project, and
48 the field of estimating the quality costs of the project).
49 2- The second axis: determining the budget of the project, which aims to calculate the
50 total estimated costs for each activity separately, or at the level of work packages,
51 in order to establish an approved reference line for cost in addition to administrative
52 costs, and was measured in statements from (23 to 51) distributed over three sub-
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areas: (the field of aggregation of costs at the level of work packages and control
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accounts, the field of aggregation of costs at the project level, and the field of cash
56 flows).
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3 3- The third axis: controlling costs in the project, which aims to monitor the status of
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the project, in order to challenge the modernization of project costs, manage
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6 changes in the cost reference line, and take the necessary preventive and corrective
7 measures to restore the workflow according to the planned schedule and budget,
8 and was measured in phrases from (31 to 21.3) distributed over six sub-areas: (the
9 field of collecting data on the progress of work in the project, the field of using
10 follow-up tools in controlling costs, the field of comparison and analysis at the
11 level of activities and work packages, the field of comparison and analysis on The
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level of control accounts, the field of comparison and analysis at the project level,
14 the field of updating and documentation)
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17 5 Results and Discussion
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19 5.1 Descriptive analysis of the cost estimation axis:
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21 The results of the statistical analysis showed that the total value of the weighted avarage
22 mean for the items in the cost estimation axis reached 1.68 degrees, with a standard deviation of
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0.230, which indicates a fairly applied level according to the triple Likert scale, according to the
24 point of view of the study sample members. In addition, the coefficient of variation does not
25 constitute Except for about 13.60%, which indicates that there is 86.4% homogeneity between
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the answers of the study sample members regarding the degree of application of the axis. It is
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28 also noted from Figure (1) that the highest arithmetic average for the domains that make up this
29 axis from the study sample members’ point of view is 2.09. The field of estimating the direct
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30 costs of resources in the project, with a standard deviation of 0.390 and a coefficient of variation
31 of 18.8%, and a somewhat applied level, followed in the ranking by the field of establishing the
32 work breakdown structure with an arithmetic mean of 1.88 and a standard deviation of 0.22, and
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33 the field of resource planning in the project came in third place with an arithmetic mean of 1.84
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and a standard deviation of 0.21.
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The field of estimating risk costs in the project came in fourth place, with a mean of 1.7
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38 and a standard deviation of 0.31, followed in fifth place by the field of estimating quality costs in
39 the project with a mean of 1.33, a standard deviation of 0.369, and a level not applicable. In last
40 place came the field of estimating project administrative expenses with a mean of 1.28. Standard
41 deviation of 0.33, at a level not applied according to the application scale.
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43 In order to determine the extent of the partial and total contribution of variables (project
44 quality cost estimation field, project administrative expense estimation field, project risk cost
45 estimation field) in explaining the variance in the dependent variable (project cost estimate), a
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multiple linear regression analysis test was performed, and the conditions of linearity, normal
48 distribution of random errors, their independence, homogeneity of variance, and the absence of
49 influential anomalous values were verified to test the null hypothesis (Ho): All partial linear
50 regression coefficients are equal to zero, versus the alternative hypothesis (H1): there is at least
51 one partial linear regression coefficient that is not equal to zero, and Table (1) shows the test
52 results
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5 the field of estimating the quality costs of
6 the project
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the field of estimating the costs of risks
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in the project
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10 the field of estimating the administrative
11 expenses of the project
12 the field of estimating the direct costs of
13 resources
14 the field of resource planning in the
15 project
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17 the field of developing a work
18 breakdown structure
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0 0.5 1 1.5 2 2.5
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22 Figure (1) Averages of the areas of the cost estimation axis according to the opinions of the study sample members
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26 Table (1) Summary of multiple regression analysis to explain the variance in the cost estimate variable for the
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27 project
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29 R² R² R
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30 sig sig Adjusted The Multiple Explanatory Dependent

31 V.I.F t β F
32 (t) (f) coefficient of coefficient of correlation variables variable
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33 determination determination coefficient

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35 Estimating the
2.40 0.00 6.0 0.308
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costs of risks
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38 Estimating
Estimating
39 2.92 0.00 5.39 0.280 administrative
40 0.001 152.42 0.912 0.918 0.958 the cost of
41 expenses
the project
42 Estimating the
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44 2.46 0.003 3.20 0.141 costs of
45 quality
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49 It is clear from the results of Table (1) that the regression model is significant through the
50 value of (P) of (152.42) in terms of (0.001) smaller than the level of significance (0.05), and the
51 results explain that the interpreted variables explain 91.2% of the variance in the cost estimate
52 variable for the project, given the value of the adjusted coefficient of determination, and the beta
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value that shows the relationship between the cost estimate of the project and the risk cost
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55 estimate variable with a value of (0.308) is significant, as this can be deduced from the value of
56 (T) and the associated significance The beta value of the administrative expense estimation
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3 variable and the quality cost estimate variable (0.280) and (0.141) respectively were significant.
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The table also shows the results of the multilinear test where the result revealed that the largest
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6 value of the variance amplification factor in the model (2.92) is less than (10), which indicates
7 that there is no problem of linear multiplicity between the variables of the model. Based on the
8 above analysis, we reject the null hypothesis and accept the alternative hypothesis, which states
9 that there is at least one partial linear regression coefficient that is not equal to zero.
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11 5.2 Descriptive analysis of the budget axis:
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13 The results of the statistical analysis showed that the total value of the weighted avarage
14 mean of the paragraphs of the budget axis according to the point of view of the members of the
15 study sample reached 2.09 degrees with a standard deviation of 0.175, which indicates a level
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applied to some extent according to the triple Likert scale, in addition to that the coefficient of
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18 variation is only about 8.37%, which indicates that there is a homogeneity of 91.63% between
19 the answers of the study sample members on the degree of application of the axis, as can be seen
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20 from Figure (2) that the highest An avarage mean for the areas that make up this axis from the
21 point of view of the study sample members is 2.78 for the field of cost aggregation at the level of
22 work packages and control accounts with a standard deviation of 0.277 and a coefficient of
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variation of 9.92% and an applied level, followed by the cost aggregation field at the project
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level with an arithmetic mean of 2.02 and a standard deviation of 0.260, followed by the project
26 cash flow field in third place with an arithmetic mean of 1.47 and a standard deviation of 0.300.
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34 Project cash flow area
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38 Project-level cost aggregation area
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42 Scope of aggregation of costs at the level of
43 work packages and control accounts
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46 0 0.5 1 1.5 2 2.5 3
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49 Figure( 2) averages of the areas of the budget axis according to the opinions of the study sample members
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51 To determine the contribution of the variable (project cash flows) to the interpretation of
52 the variance in the dependent variable (budget determination), a simple linear regression analysis
53 test was performed, and the conditions of linearity, the normal distribution of random errors,
54 were verified to test the null hypothesis (Ho): that the linear regression coefficient (β flows) is
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3 equal to zero, against the alternative hypothesis (H1): which is the linear regression coefficient is
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not equal to zero, and Table (2) shows the test results.
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8 Table (2) Summary of simple linear regression analysis to explain variance in the budgeting variable
9 R² R² R
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11 sig sig Adjusted The Multiple Explanatory Dependent
t β F
12 (t) (f) coefficient of coefficient of correlation variables variable
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14 determination determination coefficient
15 the field of
16 Determine
project cash
17 0.001 7.141 0.430 0.001 50.99 0.532 0.543 0.737 the project
18 flow
budget
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23 It is clear from the results in Table (2) that the regression model is significant, through the
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24 value of (P) of (50.99) in terms of (0.001) is less than the level of significance (0.05), and the
25 results explain that the cash flow variable explains 53.2% of the variance in the budgeting
26 variable for the project, given the value of the adjusted determination coefficient, and the beta
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value, which shows the relationship between the two variables with a value of (0.430), is
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29 significant, as this can be deduced from the value of (T) and the associated significance, and
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30 based on We reject the null hypothesis, and accept the alternative hypothesis, which states that
31 the linear regression coefficient of the cash flow variable is not equal to zero.
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5.3 Descriptive analysis of the cost control axis:
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35 The results of the study showed that the members of the study sample believe that the total
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value of the weighted avarage mean of the paragraphs of the cost control axis is 1.71 degrees and
37 a standard deviation of 0.254, which indicates a level applied to some extent according to the
38 triple Likert scale, and that the coefficient of variation is only 14.85%, which indicates that there
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is a homogeneity of 85.15% between the answers of the study sample members on the degree of
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application of the axis, as can be seen from Figure (3) that the highest arithmetic average for the
42 areas that make up this axis From the point of view of the study sample members is 2.07 for the
43 field of collecting data on the progress of work in the project with a standard deviation of 0.250
44 and a coefficient of variation of 12% and a level applied to some extent, followed in the ranking
45 by the field of comparison and analysis at the project level with an arithmetic mean of 2.0 and a
46 standard deviation of 0.150, and came in the penultimate and last place the field of comparison
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and analysis at the level of activities and work packages and the field of using follow-up tools in
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49 controlling costs with an arithmetic mean (1.62 and a standard deviation of 0.730, 1.24 and a
50 standard deviation of 0.30) respectively.
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6 Project-level comparison and analysis
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Field of modernization and
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documentation
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11 The use of follow-up tools in cost control
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13 Work progress data collection
14 The field of comparison and analysis at
15 the level of control accounts
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17 The field of comparison and analysis at
18 the level of activities and work packages
19
0.00 0.50 1.00 1.50 2.00 2.50
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22 Figure (3) averages of the areas of cost control axis according to the opinions of the study sample members
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24 To determine the extent to which the partial and total contribution of variables (the domain
25 of using follow-up tools in cost control, the field of comparison and analysis at the level of
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activities and work packages, and the field of comparison and analysis at the level of control
28 accounts) in the interpretation of variance in the dependent variable (cost control of the project),
29 a multiple linear regression analysis test was performed, and the conditions of linearity, normal
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30 distribution of random errors, their independence, homogeneity of variance, and the absence of
31 influential outliers were verified to test the null hypothesis (Ho): All partial linear regression
32 coefficients are equal to zero, versus the alternative hypothesis (H 1): there is at least one partial
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linear regression coefficient that is not equal to zero, and the test results are shown in Table (3).
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35 Table (3) Summary of multiple regression analysis to explain the variance in the cost control variable of the project
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R² R² R
37
38 sig sig Adjusted The Multiple Explanatory Dependent
V.I.F t β F
39 (t) (f) coefficient of coefficient of correlation variables variable
40
41 determination determination coefficient
42 Use follow-up
43 1.04 0.00 7.54 0.248
tools
44
45 Comparison and
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analysis across
47 1.71 0.00 11.00 0.188 Cost
48 activities and
49 0.001 224.39 0.938 0.943 0.971 control in
work packages
50 the project
51 Comparison and
52 analysis at the
53 1.67 0.00 9.58 0.163
54 level of control
55 accounts
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3 It is clear from the results of Table (3) that the regression model is significant through the
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value of (P) of (224.39) in terms of (0.001) is smaller than the level of significance (0.05), and
5
6 the results explain that the interpreted variables explain 93.8% of the variance in the cost control
7 variable for the project, given the value of the adjusted coefficient, and the beta value that
8 illustrates the relationship between the cost control of the project and the variable of using
9 follow-up tools with a value of (0.248) is significant, as this can be deduced from the value of
10 (T) and the associated significance Also, the beta value of the comparison and analysis variable
11 at the level of activities and work packages and the comparison and analysis variable at the level
12
13
of control accounts (0.188) and (0.163) respectively was significant. The table also shows the
14 results of the multilinear test where the result revealed that the largest value of the variance
15 amplification factor in the model (1.71) is less than (10), which indicates that there is no problem
16 of linear multiplicity between the variables of the model. Based on the above analysis, we reject
17 the null hypothesis and accept the alternative hypothesis, which states that there is at least one
18 partial linear regression coefficient that is not equal to zero.
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20 5.4 Discussion of the results of the study
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22 1- Failure to use the bottom-up estimation method to estimate the cost of project
23 implementation activities, as the arithmetic average value of this paragraph was
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24 (1.27), and this comes in line with a study [13], which recommended adopting the
25 activity-based cost method to obtain more accurate estimates of the cost of
26 activities in the project.
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2- Deficiencies in estimating the costs of administrative expenses of the project, as the
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29 value of the arithmetic average for this area was (1.28), and this comes in line with
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30 the study [13], and explains what was mentioned in the study [6], where the first
31 study concluded that there is a discrepancy in estimating the cost of overhead
32 activities as a result of applying the activity-based cost method compared to other
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33 traditional methods, while the second study showed in its results an increase in
34 indirect costs from their estimated value, as well as Consistent with a study [17],
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which recommended that planning should be made to maintain optimal levels of
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37 corporate overhead costs.

38 3- Not including the cost reserves necessary to face the risks at the level of activities,
39 or at the level of work packages in the project, due to the failure to study the
40 expected risks, and develop response plans for them, and this comes in line with the
41 study [4], and the study [11], which recommended the need to study the risks that
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may occur in the project, and to develop the necessary precautions to confront
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44 them, as well as consistent with [1], which stated that one of the reasons for the
45 failure of projects related to the project planning and implementation process is the
46 poor application of the risk assessment process, as well as in line with [2], which
47 stated that the lack of an emergency reserve for risk management is one of the
48 reasons for the deviation in the cost of construction project
49 4- Failure to prepare financial flows statements for the project according to schedule,
50
in order to determine the incoming and outgoing financial flows according to the
51
52 dates of the financial payments agreed upon in the project implementation contract,
53 and to identify the sources of financing necessary to cover the negative flows, and
54 this comes in line with the study [4], and the study [18], where both of them
55 concluded that the contractor neglected the financial planning of the project, and
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3 did not develop a plan for financial flows, which may result in financial bottlenecks
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during the project implementation phase.
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6 5- Failure to estimate the administrative reserves allocated from the project budget for
7 sudden works within the scope of project implementation work
8 6- Failure to create a detailed work breakdown structure for the project with, defining
9 the roles and responsibilities of the project team members, as the value of the
10 arithmetic average of the paragraphs of the scope of developing the work
11 breakdown structure was (1.88), and this comes in line with the study [13], and the
12
13
study [19], which recommended the importance of establishing a detailed work
14 breakdown structure that includes all project activities, and identifying the
15 responsible project team member at the level of work packages, in order to obtain
16 better results for the process of controlling and controlling the budget Project.
17 7- Deficiencies in the process of monitoring and controlling the cost at the level of
18 activities and work packages and the level of control calculations for the cost
19
elements (labor, equipment, construction materials) in the project, by conducting an
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20
21 analysis of the variance between the actual costs of the cost elements with the
22 planned costs, and identifying deviations based on cost performance indicators and
23 schedule; Control accounts (1.62, 1.65) respectively, and this comes in line with a
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24 study [7], which recommended the need for the implementing authorities to prepare
25 weekly cost reports for labor and construction equipment used in the projec
26
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27
28
29
6 Conclusions
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30 1- The study found that the level of cost estimation applied in construction projects in
31 the city of Tripoli is limited, according to the result of the scale (applied to some
32 extent), according to the point of view of the members of the study sample.
ev

33 2- The study found that the level of the budget process applied in the construction
34
35
projects in the city of Tripoli is limited, according to the result of the scale (applied
36 to some extent), according to the point of view of the members of the study sample.
iew

37 3- The study found that the level of cost control process applied in construction
38 projects in the city of Tripoli is limited, according to the result of the scale (applied
39 to some extent), according to the point of view of the members of the study sample,
40 and in general the study found that the level of cost management applied in
41 construction projects in the city of Tripoli is limited.
42
43
4- The results of the multiple regression analysis showed that the variables (the field
44 of estimating quality costs in the project, the field of estimating the administrative
45 expenses of the project, and the field of estimating the risks in the project)
46 explained about 91% of the variation in the application of the cost estimation axis.
47 5- The results of the simple regression analysis showed that the variable (cash flows in
48 the project) explained about 53% of the variance in the application of the budgeting
49
axis.
50
51 6- The results of the multiple regression analysis showed that the variables (the field
52 of use of follow-up tools, the field of comparison and analysis at the level of
53 activities and work packages, and the field of comparison and analysis at the level
54 of control accounts) explained about 93% of the variance in the application of the
55 cost control axis.
56
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4
7 Recommendations
5 Based on the findings of the study, the researcher recommends addressing the noticeable
6
7
deficiencies in the application of cost management processes in construction projects in the city
8 of Tripoli as follows:
9
10 1- Raising the efficiency of engineering cadres in the implementing agencies, through
11 continuous training and intensifying specialized training courses and programs in
12 the field of project management and cost management processes in construction
13 projects.
14 2- Emphasizing the need to establish a detailed work breakdown structure that
15
includes all project implementation activities, through which accurate methods can
16
17 be used to estimate direct and indirect costs, as well as using its components as
18 control accounts to control and control project costs.
19 3- The implementing entities shall define the roles and responsibilities assigned to the
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20 project team, and clarify the responsibility for controlling the costs of each
21 component in the project work breakdown structure.
22 4- The need to provide all documents, templates and information, related to cost
23
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estimation and budgeting.

24
25 5- Emphasizing the need to use accurate methods and tools in estimating the cost of
26 project implementation activities.
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27 6- Risks must be identified and evaluated during the project planning stage, and the
28 costs of facing them and the costs of quality requirements must be included during
29 the estimation process, in order to control deviations in the cost of implementing
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30 the project, and to ensure the achievement of the required level of quality.
31
7- Determining the budget necessary for the implementation of the project, preparing
32
the cash flow chart according to the schedule and determining the negative cash
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33
34 flows according to the dates of the extracts agreed upon in the project
35 implementation contract, with the need to find the necessary sources of financing to
36
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cover these flows, in order to avoid the budget deficit resulting from the delay in
37 paying the financial dues by the owner.
38
8- Using the earned value management tool to monitor and control the costs (labor,
39
40 equipment, construction materials) at the level of activities and work packages in
41 the project, in order to identify deviations in the cost of implementing the project,
42 take the necessary corrective actions, and achieve better results for the cost control
43 process.
44
45
46
47
48
49
50
51
52
53
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References
5
6
7
8 [1] H. Kerzner, PROJECT MANAGEMENT: A Systems Approach to plannig, scheduling, and
9 controlling, new jersey: John Wiley & Sons, Inc., 2017.
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[2] J. M. Russ and Z. M. Dragan, Project Management Tool Box, Second ed., Hoboken, New Jersey:
12
13 John Wiley & Sons,Inc, 2016.
14
15 [3] H. Faiad, (Study of the reasons for the increase in the cost of construction projects in the city of
16 Tripoli)., Tripoli: Libyan Academy for Graduate Studies, Unpublished Master Thesis, 2015.
17
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[4] H. Acefao, Study of the factors that lead to the increase in cost in the projects of the Railway Project
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20 Implementation and Management Agency, Tripoli: Libyan Academy for Graduate Studies,
21 Unpublished Master Thesis, 2016.
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[5] I. Abdul-Rahman, A. Memon and A. Abd.Karim, "Significant Factors Causing Cost Overruns in
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Large Construction Projects in Malaysia," Jornal of Applied Sciences, vol. 13, no. 2, pp. 286-293,
25
26 January 2013.
ee

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28 [6] R. Alsadiq, Reasons for the deviation of the final cost from the planned cost in construction projects
29 in Tripoli, Tripoli: Libyan Academy for Graduate Studies, Unpublished Master Thesis, 2017.
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[7] S. Malkanthi, A. Premalal and R. Mudalige, "Impact of Control Techniques on Cost Overruns in
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Construction Projects," ENGINEER, vol. 04, pp. 53-60, 2017.
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35 [8] a. Aoun, Scientific research, its methodology and stages of preparation, Tripoli: Darassalam, 2021.
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iew

37 [9] D. Ashibani, Studying the reasons for cost variation in transportation projects at the General
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Electricity Company, Tripoli: Libyan Academy for Graduate Studies, Unpublished Master Thesis,
39
40 2017.
41
42 [10] J. Chimdi, S. Girma, A. Mosisa and D. Mitiku, "Assessment of Factors Affecting Accuracy of Cost
43 Estimation in Public Construction Projects in Western Oromia Region,Ethiopia," Journal of Civil
44 Engineering, Science and Technology, vol. 11, no. 2, 2 September 2020.
45
46
47 [11] E. Khalil, (Study of the reasons for increasing the cost of infrastructure projects in the city of Al-
48 Khoms)., tripoli: Libyan Academy for Graduate Studies, Unpublished Master Thesis, 2015.
49
50 [12] A. S. Aldalaeen, "Evaluation of the Variables Affecting on the Cost Management and Its Correlation
51
to the Implementation of Construction Projects," European Journal of Business and Management,
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53 vol. 11, 2019.
54
55 [13] Y. M. Aboelmagd, "Assessments of Barriers to Implmenting Cost Control and Optimal Cost
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2
3 Reduction Techniques in Construction Projects: A Case Study of Egypt," Journal of Engineering
4
5 Sciences, vol. 49, pp. 509-529, 8 June 2021.
6
7 [14] F. A. Albtoush, S. I. Doh, A. R. Bin Abdul Rahman and J. A. Albtoush, "FACTORS EFFECTING
8 THE COST MANAGEMENT IN CONSTRUCTION PROJECTS," International Journal of Civil
9 Engineering and Technology, vol. 11, no. 1, pp. 105-111, 2020.
10
11
12 [15] A. M. Kamaruddeen, C. F. Sung and W. Wahi, "A Study on Factors Causing Cost Overrun of
13 Construction Projects in Sarawak, Malaysia," Civil Engineering and Architecture, vol. 8, 13 May
14 2020.
15
16 [16] Y. Alazabi and A. Almansouri, Guidance steps in writing scientific theses (Master’s and PhD), ‫األولى‬
17
18
ed., Benghazi: Dar alkotob alwataniya, 2017.
19
Fo
20 [17] A. A. Sadi, A. B. Abdulaziz, S. Atiyah and M. Al-Shahri, "The management of construction
21 company overhead costs," International Journal of Project Management, vol. 19, pp. 295-303, 10
22 January 2001.
23
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24
25
[18] M. Mansour, Using Earned Value Management to Manage Engineering Projects “An Applied Study
26 of Some Central Region Projects”, misrata: Libyan Academy for Graduate Studies, Unpublished
ee

27 Master Thesis, 2018.

28
29 [19] J. Valle and A. C. Soares, The Use of Earned Value Analysis in the Cost Management of
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30
Construction Projects in Brazil, Federal University, Brazil, 2015.
31
32
ev

33 [20] K. Harold, PROJECT MANAGEMENT: A Systems Approach to plannig, scheduling, and

34 controlling, new jersey: John Wiley & Sons, Inc., 2017.
35
36
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37
38
39
40
41
42
43
44
45
46
47
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49
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51
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4
Construction Cost Variance in Construction Projects Due to Contractor
5
6 “Applied Study Construction Projects in Tripoli City”
7
8 By: KHALED SALEH MUKHTAR ALAMMARI
9
10 Supervisor: ZAIDAN ALI HATUSH, Ph.D.
11
12
13 1 Abstract
14 The study aimed to assess the extent to which the implementing authorities of construction
15
16
projects in the city of Tripoli apply cost management processes, represented in the axis of cost
17 estimation, the axis of determining the budget, and the axis of cost control, by following the
18 descriptive approach and the analytical approach, where the study community consisted of
19 project managers and engineers working in the implementing agencies, and the sample was taken
Fo
20 in a simple random way, and after distributing (60) questionnaires to the study sample, (45) valid
21 forms for statistical analysis were retrieved. To analyze the data collected from the sample of the
22
study, and to achieve the objectives of the program, the computer was used and the program of
23
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24 statistical packages for the social sciences (SPSS) was used, where percentages, arithmetic
25 averages, and standard deviations were used, and multiple regression analysis was used to
26 determine the total partial contribution of the study fields to explain the variation in the study
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27 axes (cost estimation, budget determination, Cost control) This study concluded a set of results,
28 the most important of which are the following:
29
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30 1- The level of application of the implementing agencies for cost management operations in
31 construction projects within the city of Tripoli is limited, according to the result of the scale
32
(applied to some extent).
ev

33
34
2- According to the results of the multiple regression analysis, the variables (the field of
35
36 estimating quality costs in the project, the field of estimating the administrative expenses of the
iew

37 project, the field of estimating the costs of risks in the project) have explained about 91% of the
38 variation in the cost estimate axis.
39
40 3- According to simple regression analysis, the variable (cash flows in the project) has explained
41 about 53% of the variance in the axis of determining the budget.
42
43 4- According to the results of multiple regression analysis, the variables (the field of use of
44 follow-up tools, the field of comparison and analysis at the level of activities and work packages,
45 and the field of comparison and analysis at the level of control accounts) have explained about
46
93% of the variance in the axis of cost control.
47
48
Keywords: Cost Management, Estimate Costs, Determine Budget, Control Costs
49
50
51
52 2 Introduction
53 The construction sector is one of the most important sectors in terms of activity rates and
54
55
its overlap with the rest of the other economic sectors, as it provides job opportunities to absorb
56 labor, especially local, and during the past years, the Libyan state has monitored planning efforts
57
58 1
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 Project Management Journal Page 16 of 70

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3 for development in the infrastructure, productivity, and service sectors, and in order to achieve
4
the quantitative goals of these plans, it required contracting for the implementation of large
5
6 numbers of construction projects in which national companies had a share of participation, and
7 by increasing the number and sizes of these projects, the weakness of the implementing agencies
8 appeared in administrative terms. The lack of qualified technical and specialized personnel, as
9 well as the lack of proper planning, implementation and follow-up processes, has negatively
10 affected the implementation of these projects, leading to their faltering and deviation from the
11 budgets allocated for their implementation and their delay in time plans.
12
13 Based on the close relationship between project management's planning, organization,
14
15
direction and control of enterprise resources and the achievement of the desired project
16 objectives, successful project management is based on achieving project objectives within the
17 approved cost limits, the required level of performance, using allocated resources efficiently and
18 effectively, and achieving project stakeholder satisfaction. [1]
19
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20 In fact, the deviation of the actual cost from the planned is common in construction
21 projects, and occurs cumulatively during the implementation of the project, so it is necessary to
22 apply cost management, because it includes managing the processes required to ensure that
23
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project work is completed within the approved budget, evaluating any changes that occur to it, as
24
25
a result of changes in the project scope, and setting a new budget baseline when necessary [2].
26
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27
There are studies that dealt with the causes and factors causing cost deviation in
28 construction projects, where a study [3] showed that one of the reasons for exceeding the cost is
29 that the contractor provided prices that are not studied accurately at the beginning of the contract,
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30 and a study [4] showed that erroneous estimates of the estimated cost are one of the reasons for
31 exceeding the cost, as well as a study [5] showed that the fluctuation in the prices of raw
32 materials and building materials is one of the reasons for exceeding the cost. Also, the delay of
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33
the owner in disbursing the extracts to the contractor is one of the reasons for the increase in the
34
35 cost in construction projects according to a study [6], and the lack of follow-up and cost control
36 is the most common factor associated with increasing the profit margin in construction projects
iew

37 according to a study [7]

38
39 From here, the researcher believes that the application of cost management processes
40 from: developing a plan, estimating costs, determining the budget, and controlling the cost in the
41 planning and implementation stages of construction projects Hence, it is clear that there is a lack
42 of previous local studies, as they did not address the extent to which the implementing agencies
43
apply cost management processes in construction projects, and since one of the objectives of
44
45 scientific research is to start from where others ended, in order to clarify the ambiguity, detail the
46 total, collect the dispersed, or complete the missing [8], so it was necessary to know in some
47 detail the extent to which the implementing agencies apply cost management processes in
48 planning and implementing construction projects, and compare it with what is stipulated in the
49 guide Knowledge of project management in Chapter VII on cost management, by following the
50 descriptive approach and the analytical approach, and using the questionnaire tool to inquire
51
52
about the reality of cost management, in order to identify deficiencies and defects in its
53 application, which represents the research problem.
54
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4
3 Literature review
5 Previous studies related to the variables of the current study such as [4], [5] as well as [6],
6 [9], [10] showed a number of reasons and factors that led to the deviation of the actual cost from
7 the planned cost in construction projects, and therefore the research problem is that there is an
8 urgent need to identify shortcomings and shortcomings in the process of estimating the financial
9
10
resources necessary to implement project activities and the process of controlling costs,
11 including the comparison it contains. Analyze the project budget spent with the value of the work
12 performed. study [11] was the most prominent of its results Failure to put in place the necessary
13 precautions to confront emergencies and potential risks, delays in paying compensation for
14 citizens’ real estate ownership, poor planning in schedules of quantities and specifications, and
15 failure to employ engineering management tools and mechanisms; To choose the appropriate
16 contractor and project manager, as well as new regulations, laws, and administrative routine. One
17
18
of the reasons for increasing costs, and [12] The most prominent results were that the variable
19 cost of transporting construction materials and equipment had the highest arithmetic mean,
Fo
20 followed by the variable of fluctuation in prices of construction materials and equipment, and
21 followed by the variable availability of a financial flow plan at the implementing agency, in the
22 financial aspects group. The results of a study [13] also showed the presence of (20) factors
23
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affecting the cost control process collected from personal interviews with experts, and they were
24
arranged according to the relative importance index, including: the factor of change orders, the
25
26 factor of changes in designs and design errors, the factor of the economic situation of the
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27 country, the factor of high prices of construction materials, the factor of project delay and the
28 factor of inaccurate cost estimates. The results of applying the activity-based cost (ABC) method
29 in the case study showed a clear effect, and there is a discrepancy in estimating the cost of
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30 overhead activities compared to traditional methods of cost estimation, which leads to obtaining
31 a better price for tenders, The study recommended the adoption of the activity-based cost (ABC)
32
method to obtain more accurate estimates of the cost of activities in the project.
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33
34
The results of a study [14] also showed that factors affecting cost management in
35
36 construction projects include changes in designs, weak management on site, delayed payment of
iew

37 dues to the implementing agency by the owner, and fluctuation in the prices of construction
38 materials. As for the year 2020, the results of a study [15] showed that the factor of shortage of
39 construction materials and their availability, and the factor of shortage of construction equipment
40 and its spare parts from the group of external factors had the highest value for the relative
41 importance index in the general ranking, followed by the factor of accelerating the pace of work
42
43
required of the owner, followed by the factor of changes that The scope of work, specifications,
44 or construction materials are changed by the owner from the group of factors related to the
45 owner, followed by the factor of errors during implementation and the factor of lack of skilled
46 labor from the group of factors related to the contractor. The results of the study also showed that
47 fluctuation in raw material prices, weak project management, and weak cost control and control
48 are factors causing increased costs in construction projects in Sarawak, Malaysia.
49
50 While the results of a study [10] in 2020 showed that the factor of the level of experience
51
of the cost estimation engineer had the highest value for the relative importance index in the list
52
53 of factors affecting the cost estimation process in the group of factors related to evaluating the
54 cost estimation process, followed by the factor of the possibility of obtaining a database for
55 similar projects, followed by The factor of accuracy of the information collected from the site
56 before carrying out the estimation process, followed by the factor of the procedure followed in
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3 updating information in the cost estimation process, followed by the factor of accuracy of the
4
assumptions used in the cost estimation process.
5
6
The factor of prices of construction materials and their availability received the highest
7
8 value of the relative importance index in the list of factors affecting the cost estimation process
9 in the group of market factors and external factors, followed by the factor of fluctuation of the
10 exchange rate of the local currency, followed by the factor of the availability and productivity of
11 labor and construction equipment, followed by the factor of the economic situation of the
12 country.
13
14
15
16
4 Methodology
17 In order to achieve the objectives of the study, the descriptive approach and the analytical
18 approach were followed to describe the phenomenon that is the subject of the study, analyze its
19 data, and determine the relationship between its variables and the opinions that are presented
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20 about it In order to reach the results of the study. [8]Defines the descriptive method as the
21
22
method in which the researcher describes a particular phenomenon, and then analyzes its
23 characteristics and the factors affecting it. Likewise, [16] defined the descriptive method as the
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24 method used to study and clarify the characteristics of the phenomenon, or an interpretation of an
25 existing situation. In fact and determine their relationship within the framework of the variables
26 surrounding them.
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27
28 4.1 Personal interviews:
29
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30 The practical study relied on conducting personal interviews with some project
31 managers and engineers working for agencies implementing construction projects to
32 find out some data related to the study.
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33
34 4.2 Questionnaire design
35 It was designed to evaluate the extent to which implementing agencies apply cost
36
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management processes in planning and implementing construction projects, based on three main
37
38 axes, as stipulated in the Project Management Knowledge Guide (PMBOK), which are as
39 follows:
40
41 1- The first axis: estimating the costs of the project, which aims to estimate the
42 financial resources necessary to complete the project work, and was measured in
43 statements from (1 to 22) distributed over six sub-areas: (the field of developing a
44 work breakdown structure, the field of resource planning in the project, the field of
45 estimating the direct costs of resources, the field of estimating the administrative
46
47
expenses of the project, the field of estimating the costs of risks in the project, and
48 the field of estimating the quality costs of the project).
49 2- The second axis: determining the budget of the project, which aims to calculate the
50 total estimated costs for each activity separately, or at the level of work packages,
51 in order to establish an approved reference line for cost in addition to administrative
52 costs, and was measured in statements from (23 to 51) distributed over three sub-
53
areas: (the field of aggregation of costs at the level of work packages and control
54
55
accounts, the field of aggregation of costs at the project level, and the field of cash
56 flows).
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3 3- The third axis: controlling costs in the project, which aims to monitor the status of
4
the project, in order to challenge the modernization of project costs, manage
5
6 changes in the cost reference line, and take the necessary preventive and corrective
7 measures to restore the workflow according to the planned schedule and budget,
8 and was measured in phrases from (31 to 21.3) distributed over six sub-areas: (the
9 field of collecting data on the progress of work in the project, the field of using
10 follow-up tools in controlling costs, the field of comparison and analysis at the
11 level of activities and work packages, the field of comparison and analysis on The
12
13
level of control accounts, the field of comparison and analysis at the project level,
14 the field of updating and documentation)
15
16
17 5 Results and Discussion
18
19 5.1 Descriptive analysis of the cost estimation axis:
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20
21 The results of the statistical analysis showed that the total value of the weighted avarage
22 mean for the items in the cost estimation axis reached 1.68 degrees, with a standard deviation of
23
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0.230, which indicates a fairly applied level according to the triple Likert scale, according to the
24 point of view of the study sample members. In addition, the coefficient of variation does not
25 constitute Except for about 13.60%, which indicates that there is 86.4% homogeneity between
26
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the answers of the study sample members regarding the degree of application of the axis. It is
27
28 also noted from Figure (1) that the highest arithmetic average for the domains that make up this
29 axis from the study sample members’ point of view is 2.09. The field of estimating the direct
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30 costs of resources in the project, with a standard deviation of 0.390 and a coefficient of variation
31 of 18.8%, and a somewhat applied level, followed in the ranking by the field of establishing the
32 work breakdown structure with an arithmetic mean of 1.88 and a standard deviation of 0.22, and
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33 the field of resource planning in the project came in third place with an arithmetic mean of 1.84
34
35
and a standard deviation of 0.21.
36
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The field of estimating risk costs in the project came in fourth place, with a mean of 1.7
37
38 and a standard deviation of 0.31, followed in fifth place by the field of estimating quality costs in
39 the project with a mean of 1.33, a standard deviation of 0.369, and a level not applicable. In last
40 place came the field of estimating project administrative expenses with a mean of 1.28. Standard
41 deviation of 0.33, at a level not applied according to the application scale.
42
43 In order to determine the extent of the partial and total contribution of variables (project
44 quality cost estimation field, project administrative expense estimation field, project risk cost
45 estimation field) in explaining the variance in the dependent variable (project cost estimate), a
46
47
multiple linear regression analysis test was performed, and the conditions of linearity, normal
48 distribution of random errors, their independence, homogeneity of variance, and the absence of
49 influential anomalous values were verified to test the null hypothesis (Ho): All partial linear
50 regression coefficients are equal to zero, versus the alternative hypothesis (H1): there is at least
51 one partial linear regression coefficient that is not equal to zero, and Table (1) shows the test
52 results
53
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 Project Management Journal Page 20 of 70

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4
5 the field of estimating the quality costs of
6 the project
7
the field of estimating the costs of risks
8
in the project
9
10 the field of estimating the administrative
11 expenses of the project
12 the field of estimating the direct costs of
13 resources
14 the field of resource planning in the
15 project
16
17 the field of developing a work
18 breakdown structure
19
0 0.5 1 1.5 2 2.5
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20
21
22 Figure (1) Averages of the areas of the cost estimation axis according to the opinions of the study sample members
23
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24
25
26 Table (1) Summary of multiple regression analysis to explain the variance in the cost estimate variable for the
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27 project
28
29 R² R² R
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30 sig sig Adjusted The Multiple Explanatory Dependent

31 V.I.F t β F
32 (t) (f) coefficient of coefficient of correlation variables variable
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33 determination determination coefficient

34
35 Estimating the
2.40 0.00 6.0 0.308
36
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costs of risks
37
38 Estimating
Estimating
39 2.92 0.00 5.39 0.280 administrative
40 0.001 152.42 0.912 0.918 0.958 the cost of
41 expenses
the project
42 Estimating the
43
44 2.46 0.003 3.20 0.141 costs of
45 quality
46
47
48
49 It is clear from the results of Table (1) that the regression model is significant through the
50 value of (P) of (152.42) in terms of (0.001) smaller than the level of significance (0.05), and the
51 results explain that the interpreted variables explain 91.2% of the variance in the cost estimate
52 variable for the project, given the value of the adjusted coefficient of determination, and the beta
53
value that shows the relationship between the cost estimate of the project and the risk cost
54
55 estimate variable with a value of (0.308) is significant, as this can be deduced from the value of
56 (T) and the associated significance The beta value of the administrative expense estimation
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3 variable and the quality cost estimate variable (0.280) and (0.141) respectively were significant.
4
The table also shows the results of the multilinear test where the result revealed that the largest
5
6 value of the variance amplification factor in the model (2.92) is less than (10), which indicates
7 that there is no problem of linear multiplicity between the variables of the model. Based on the
8 above analysis, we reject the null hypothesis and accept the alternative hypothesis, which states
9 that there is at least one partial linear regression coefficient that is not equal to zero.
10
11 5.2 Descriptive analysis of the budget axis:
12
13 The results of the statistical analysis showed that the total value of the weighted avarage
14 mean of the paragraphs of the budget axis according to the point of view of the members of the
15 study sample reached 2.09 degrees with a standard deviation of 0.175, which indicates a level
16
applied to some extent according to the triple Likert scale, in addition to that the coefficient of
17
18 variation is only about 8.37%, which indicates that there is a homogeneity of 91.63% between
19 the answers of the study sample members on the degree of application of the axis, as can be seen
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20 from Figure (2) that the highest An avarage mean for the areas that make up this axis from the
21 point of view of the study sample members is 2.78 for the field of cost aggregation at the level of
22 work packages and control accounts with a standard deviation of 0.277 and a coefficient of
23
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variation of 9.92% and an applied level, followed by the cost aggregation field at the project
24
25
level with an arithmetic mean of 2.02 and a standard deviation of 0.260, followed by the project
26 cash flow field in third place with an arithmetic mean of 1.47 and a standard deviation of 0.300.
ee

27
28
29
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30
31
32
ev

33
34 Project cash flow area
35
36
iew

37
38 Project-level cost aggregation area
39
40
41
42 Scope of aggregation of costs at the level of
43 work packages and control accounts
44
45
46 0 0.5 1 1.5 2 2.5 3
47
48
49 Figure( 2) averages of the areas of the budget axis according to the opinions of the study sample members
50
51 To determine the contribution of the variable (project cash flows) to the interpretation of
52 the variance in the dependent variable (budget determination), a simple linear regression analysis
53 test was performed, and the conditions of linearity, the normal distribution of random errors,
54 were verified to test the null hypothesis (Ho): that the linear regression coefficient (β flows) is
55
56
57
58 7
59
60
 Project Management Journal Page 22 of 70

1
2
3 equal to zero, against the alternative hypothesis (H1): which is the linear regression coefficient is
4
not equal to zero, and Table (2) shows the test results.
5
6
7
8 Table (2) Summary of simple linear regression analysis to explain variance in the budgeting variable
9 R² R² R
10
11 sig sig Adjusted The Multiple Explanatory Dependent
t β F
12 (t) (f) coefficient of coefficient of correlation variables variable
13
14 determination determination coefficient
15 the field of
16 Determine
project cash
17 0.001 7.141 0.430 0.001 50.99 0.532 0.543 0.737 the project
18 flow
budget
19
Fo
20
21
22
23 It is clear from the results in Table (2) that the regression model is significant, through the
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24 value of (P) of (50.99) in terms of (0.001) is less than the level of significance (0.05), and the
25 results explain that the cash flow variable explains 53.2% of the variance in the budgeting
26 variable for the project, given the value of the adjusted determination coefficient, and the beta
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27
value, which shows the relationship between the two variables with a value of (0.430), is
28
29 significant, as this can be deduced from the value of (T) and the associated significance, and
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30 based on We reject the null hypothesis, and accept the alternative hypothesis, which states that
31 the linear regression coefficient of the cash flow variable is not equal to zero.
32
5.3 Descriptive analysis of the cost control axis:
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33
34
35 The results of the study showed that the members of the study sample believe that the total
36
iew

value of the weighted avarage mean of the paragraphs of the cost control axis is 1.71 degrees and
37 a standard deviation of 0.254, which indicates a level applied to some extent according to the
38 triple Likert scale, and that the coefficient of variation is only 14.85%, which indicates that there
39
is a homogeneity of 85.15% between the answers of the study sample members on the degree of
40
41
application of the axis, as can be seen from Figure (3) that the highest arithmetic average for the
42 areas that make up this axis From the point of view of the study sample members is 2.07 for the
43 field of collecting data on the progress of work in the project with a standard deviation of 0.250
44 and a coefficient of variation of 12% and a level applied to some extent, followed in the ranking
45 by the field of comparison and analysis at the project level with an arithmetic mean of 2.0 and a
46 standard deviation of 0.150, and came in the penultimate and last place the field of comparison
47
and analysis at the level of activities and work packages and the field of using follow-up tools in
48
49 controlling costs with an arithmetic mean (1.62 and a standard deviation of 0.730, 1.24 and a
50 standard deviation of 0.30) respectively.
51
52
53
54
55
56
57
58 8
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Page 23 of 70 Project Management Journal

1
2
3
4
5
6 Project-level comparison and analysis
7
Field of modernization and
8
documentation
9
10
11 The use of follow-up tools in cost control
12
13 Work progress data collection
14 The field of comparison and analysis at
15 the level of control accounts
16
17 The field of comparison and analysis at
18 the level of activities and work packages
19
0.00 0.50 1.00 1.50 2.00 2.50
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20
21
22 Figure (3) averages of the areas of cost control axis according to the opinions of the study sample members
23
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24 To determine the extent to which the partial and total contribution of variables (the domain
25 of using follow-up tools in cost control, the field of comparison and analysis at the level of
26
ee

27
activities and work packages, and the field of comparison and analysis at the level of control
28 accounts) in the interpretation of variance in the dependent variable (cost control of the project),
29 a multiple linear regression analysis test was performed, and the conditions of linearity, normal
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30 distribution of random errors, their independence, homogeneity of variance, and the absence of
31 influential outliers were verified to test the null hypothesis (Ho): All partial linear regression
32 coefficients are equal to zero, versus the alternative hypothesis (H 1): there is at least one partial
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33
linear regression coefficient that is not equal to zero, and the test results are shown in Table (3).
34
35 Table (3) Summary of multiple regression analysis to explain the variance in the cost control variable of the project
36
iew

R² R² R
37
38 sig sig Adjusted The Multiple Explanatory Dependent
V.I.F t β F
39 (t) (f) coefficient of coefficient of correlation variables variable
40
41 determination determination coefficient
42 Use follow-up
43 1.04 0.00 7.54 0.248
tools
44
45 Comparison and
46
analysis across
47 1.71 0.00 11.00 0.188 Cost
48 activities and
49 0.001 224.39 0.938 0.943 0.971 control in
work packages
50 the project
51 Comparison and
52 analysis at the
53 1.67 0.00 9.58 0.163
54 level of control
55 accounts
56
57
58 9
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2
3 It is clear from the results of Table (3) that the regression model is significant through the
4
value of (P) of (224.39) in terms of (0.001) is smaller than the level of significance (0.05), and
5
6 the results explain that the interpreted variables explain 93.8% of the variance in the cost control
7 variable for the project, given the value of the adjusted coefficient, and the beta value that
8 illustrates the relationship between the cost control of the project and the variable of using
9 follow-up tools with a value of (0.248) is significant, as this can be deduced from the value of
10 (T) and the associated significance Also, the beta value of the comparison and analysis variable
11 at the level of activities and work packages and the comparison and analysis variable at the level
12
13
of control accounts (0.188) and (0.163) respectively was significant. The table also shows the
14 results of the multilinear test where the result revealed that the largest value of the variance
15 amplification factor in the model (1.71) is less than (10), which indicates that there is no problem
16 of linear multiplicity between the variables of the model. Based on the above analysis, we reject
17 the null hypothesis and accept the alternative hypothesis, which states that there is at least one
18 partial linear regression coefficient that is not equal to zero.
19
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20 5.4 Discussion of the results of the study
21
22 1- Failure to use the bottom-up estimation method to estimate the cost of project
23 implementation activities, as the arithmetic average value of this paragraph was
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24 (1.27), and this comes in line with a study [13], which recommended adopting the
25 activity-based cost method to obtain more accurate estimates of the cost of
26 activities in the project.
ee

27
2- Deficiencies in estimating the costs of administrative expenses of the project, as the
28
29 value of the arithmetic average for this area was (1.28), and this comes in line with
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30 the study [13], and explains what was mentioned in the study [6], where the first
31 study concluded that there is a discrepancy in estimating the cost of overhead
32 activities as a result of applying the activity-based cost method compared to other
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33 traditional methods, while the second study showed in its results an increase in
34 indirect costs from their estimated value, as well as Consistent with a study [17],
35
36
which recommended that planning should be made to maintain optimal levels of
iew

37 corporate overhead costs.

38 3- Not including the cost reserves necessary to face the risks at the level of activities,
39 or at the level of work packages in the project, due to the failure to study the
40 expected risks, and develop response plans for them, and this comes in line with the
41 study [4], and the study [11], which recommended the need to study the risks that
42
may occur in the project, and to develop the necessary precautions to confront
43
44 them, as well as consistent with [1], which stated that one of the reasons for the
45 failure of projects related to the project planning and implementation process is the
46 poor application of the risk assessment process, as well as in line with [2], which
47 stated that the lack of an emergency reserve for risk management is one of the
48 reasons for the deviation in the cost of construction project
49 4- Failure to prepare financial flows statements for the project according to schedule,
50
in order to determine the incoming and outgoing financial flows according to the
51
52 dates of the financial payments agreed upon in the project implementation contract,
53 and to identify the sources of financing necessary to cover the negative flows, and
54 this comes in line with the study [4], and the study [18], where both of them
55 concluded that the contractor neglected the financial planning of the project, and
56
57
58 10
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1
2
3 did not develop a plan for financial flows, which may result in financial bottlenecks
4
during the project implementation phase.
5
6 5- Failure to estimate the administrative reserves allocated from the project budget for
7 sudden works within the scope of project implementation work
8 6- Failure to create a detailed work breakdown structure for the project with, defining
9 the roles and responsibilities of the project team members, as the value of the
10 arithmetic average of the paragraphs of the scope of developing the work
11 breakdown structure was (1.88), and this comes in line with the study [13], and the
12
13
study [19], which recommended the importance of establishing a detailed work
14 breakdown structure that includes all project activities, and identifying the
15 responsible project team member at the level of work packages, in order to obtain
16 better results for the process of controlling and controlling the budget Project.
17 7- Deficiencies in the process of monitoring and controlling the cost at the level of
18 activities and work packages and the level of control calculations for the cost
19
elements (labor, equipment, construction materials) in the project, by conducting an
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20
21 analysis of the variance between the actual costs of the cost elements with the
22 planned costs, and identifying deviations based on cost performance indicators and
23 schedule; Control accounts (1.62, 1.65) respectively, and this comes in line with a
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24 study [7], which recommended the need for the implementing authorities to prepare
25 weekly cost reports for labor and construction equipment used in the projec
26
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27
28
29
6 Conclusions
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30 1- The study found that the level of cost estimation applied in construction projects in
31 the city of Tripoli is limited, according to the result of the scale (applied to some
32 extent), according to the point of view of the members of the study sample.
ev

33 2- The study found that the level of the budget process applied in the construction
34
35
projects in the city of Tripoli is limited, according to the result of the scale (applied
36 to some extent), according to the point of view of the members of the study sample.
iew

37 3- The study found that the level of cost control process applied in construction
38 projects in the city of Tripoli is limited, according to the result of the scale (applied
39 to some extent), according to the point of view of the members of the study sample,
40 and in general the study found that the level of cost management applied in
41 construction projects in the city of Tripoli is limited.
42
43
4- The results of the multiple regression analysis showed that the variables (the field
44 of estimating quality costs in the project, the field of estimating the administrative
45 expenses of the project, and the field of estimating the risks in the project)
46 explained about 91% of the variation in the application of the cost estimation axis.
47 5- The results of the simple regression analysis showed that the variable (cash flows in
48 the project) explained about 53% of the variance in the application of the budgeting
49
axis.
50
51 6- The results of the multiple regression analysis showed that the variables (the field
52 of use of follow-up tools, the field of comparison and analysis at the level of
53 activities and work packages, and the field of comparison and analysis at the level
54 of control accounts) explained about 93% of the variance in the application of the
55 cost control axis.
56
57
58 11
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3
4
7 Recommendations
5 Based on the findings of the study, the researcher recommends addressing the noticeable
6
7
deficiencies in the application of cost management processes in construction projects in the city
8 of Tripoli as follows:
9
10 1- Raising the efficiency of engineering cadres in the implementing agencies, through
11 continuous training and intensifying specialized training courses and programs in
12 the field of project management and cost management processes in construction
13 projects.
14 2- Emphasizing the need to establish a detailed work breakdown structure that
15
includes all project implementation activities, through which accurate methods can
16
17 be used to estimate direct and indirect costs, as well as using its components as
18 control accounts to control and control project costs.
19 3- The implementing entities shall define the roles and responsibilities assigned to the
Fo
20 project team, and clarify the responsibility for controlling the costs of each
21 component in the project work breakdown structure.
22 4- The need to provide all documents, templates and information, related to cost
23
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estimation and budgeting.

24
25 5- Emphasizing the need to use accurate methods and tools in estimating the cost of
26 project implementation activities.
ee

27 6- Risks must be identified and evaluated during the project planning stage, and the
28 costs of facing them and the costs of quality requirements must be included during
29 the estimation process, in order to control deviations in the cost of implementing
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30 the project, and to ensure the achievement of the required level of quality.
31
7- Determining the budget necessary for the implementation of the project, preparing
32
the cash flow chart according to the schedule and determining the negative cash
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33
34 flows according to the dates of the extracts agreed upon in the project
35 implementation contract, with the need to find the necessary sources of financing to
36
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cover these flows, in order to avoid the budget deficit resulting from the delay in
37 paying the financial dues by the owner.
38
8- Using the earned value management tool to monitor and control the costs (labor,
39
40 equipment, construction materials) at the level of activities and work packages in
41 the project, in order to identify deviations in the cost of implementing the project,
42 take the necessary corrective actions, and achieve better results for the cost control
43 process.
44
45
46
47
48
49
50
51
52
53
54
55
56
57
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4
References
5
6
7
8 [1] H. Kerzner, PROJECT MANAGEMENT: A Systems Approach to plannig, scheduling, and
9 controlling, new jersey: John Wiley & Sons, Inc., 2017.
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11
[2] J. M. Russ and Z. M. Dragan, Project Management Tool Box, Second ed., Hoboken, New Jersey:
12
13 John Wiley & Sons,Inc, 2016.
14
15 [3] H. Faiad, (Study of the reasons for the increase in the cost of construction projects in the city of
16 Tripoli)., Tripoli: Libyan Academy for Graduate Studies, Unpublished Master Thesis, 2015.
17
18
[4] H. Acefao, Study of the factors that lead to the increase in cost in the projects of the Railway Project
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Fo
20 Implementation and Management Agency, Tripoli: Libyan Academy for Graduate Studies,
21 Unpublished Master Thesis, 2016.
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[5] I. Abdul-Rahman, A. Memon and A. Abd.Karim, "Significant Factors Causing Cost Overruns in
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Large Construction Projects in Malaysia," Jornal of Applied Sciences, vol. 13, no. 2, pp. 286-293,
25
26 January 2013.
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28 [6] R. Alsadiq, Reasons for the deviation of the final cost from the planned cost in construction projects
29 in Tripoli, Tripoli: Libyan Academy for Graduate Studies, Unpublished Master Thesis, 2017.
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[7] S. Malkanthi, A. Premalal and R. Mudalige, "Impact of Control Techniques on Cost Overruns in
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Construction Projects," ENGINEER, vol. 04, pp. 53-60, 2017.
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35 [8] a. Aoun, Scientific research, its methodology and stages of preparation, Tripoli: Darassalam, 2021.
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37 [9] D. Ashibani, Studying the reasons for cost variation in transportation projects at the General
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Electricity Company, Tripoli: Libyan Academy for Graduate Studies, Unpublished Master Thesis,
39
40 2017.
41
42 [10] J. Chimdi, S. Girma, A. Mosisa and D. Mitiku, "Assessment of Factors Affecting Accuracy of Cost
43 Estimation in Public Construction Projects in Western Oromia Region,Ethiopia," Journal of Civil
44 Engineering, Science and Technology, vol. 11, no. 2, 2 September 2020.
45
46
47 [11] E. Khalil, (Study of the reasons for increasing the cost of infrastructure projects in the city of Al-
48 Khoms)., tripoli: Libyan Academy for Graduate Studies, Unpublished Master Thesis, 2015.
49
50 [12] A. S. Aldalaeen, "Evaluation of the Variables Affecting on the Cost Management and Its Correlation
51
to the Implementation of Construction Projects," European Journal of Business and Management,
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53 vol. 11, 2019.
54
55 [13] Y. M. Aboelmagd, "Assessments of Barriers to Implmenting Cost Control and Optimal Cost
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3 Reduction Techniques in Construction Projects: A Case Study of Egypt," Journal of Engineering
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5 Sciences, vol. 49, pp. 509-529, 8 June 2021.
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7 [14] F. A. Albtoush, S. I. Doh, A. R. Bin Abdul Rahman and J. A. Albtoush, "FACTORS EFFECTING
8 THE COST MANAGEMENT IN CONSTRUCTION PROJECTS," International Journal of Civil
9 Engineering and Technology, vol. 11, no. 1, pp. 105-111, 2020.
10
11
12 [15] A. M. Kamaruddeen, C. F. Sung and W. Wahi, "A Study on Factors Causing Cost Overrun of
13 Construction Projects in Sarawak, Malaysia," Civil Engineering and Architecture, vol. 8, 13 May
14 2020.
15
16 [16] Y. Alazabi and A. Almansouri, Guidance steps in writing scientific theses (Master’s and PhD), ‫األولى‬
17
18
ed., Benghazi: Dar alkotob alwataniya, 2017.
19
Fo
20 [17] A. A. Sadi, A. B. Abdulaziz, S. Atiyah and M. Al-Shahri, "The management of construction
21 company overhead costs," International Journal of Project Management, vol. 19, pp. 295-303, 10
22 January 2001.
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24
25
[18] M. Mansour, Using Earned Value Management to Manage Engineering Projects “An Applied Study
26 of Some Central Region Projects”, misrata: Libyan Academy for Graduate Studies, Unpublished
ee

27 Master Thesis, 2018.

28
29 [19] J. Valle and A. C. Soares, The Use of Earned Value Analysis in the Cost Management of
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30
Construction Projects in Brazil, Federal University, Brazil, 2015.
31
32
ev

33 [20] K. Harold, PROJECT MANAGEMENT: A Systems Approach to plannig, scheduling, and

34 controlling, new jersey: John Wiley & Sons, Inc., 2017.
35
36
iew

37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
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Construction Cost Variance in Construction Projects Due to Contractor
5
6 “Applied Study Construction Projects in Tripoli City”
7
8 By: KHALED SALEH MUKHTAR ALAMMARI
9
10 Supervisor: ZAIDAN ALI HATUSH, Ph.D.
11
12
13 1 Abstract
14 The study aimed to assess the extent to which the implementing authorities of construction
15
16
projects in the city of Tripoli apply cost management processes, represented in the axis of cost
17 estimation, the axis of determining the budget, and the axis of cost control, by following the
18 descriptive approach and the analytical approach, where the study community consisted of
19 project managers and engineers working in the implementing agencies, and the sample was taken
Fo
20 in a simple random way, and after distributing (60) questionnaires to the study sample, (45) valid
21 forms for statistical analysis were retrieved. To analyze the data collected from the sample of the
22
study, and to achieve the objectives of the program, the computer was used and the program of
23
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24 statistical packages for the social sciences (SPSS) was used, where percentages, arithmetic
25 averages, and standard deviations were used, and multiple regression analysis was used to
26 determine the total partial contribution of the study fields to explain the variation in the study
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27 axes (cost estimation, budget determination, Cost control) This study concluded a set of results,
28 the most important of which are the following:
29
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30 1- The level of application of the implementing agencies for cost management operations in
31 construction projects within the city of Tripoli is limited, according to the result of the scale
32
(applied to some extent).
ev

33
34
2- According to the results of the multiple regression analysis, the variables (the field of
35
36 estimating quality costs in the project, the field of estimating the administrative expenses of the
iew

37 project, the field of estimating the costs of risks in the project) have explained about 91% of the
38 variation in the cost estimate axis.
39
40 3- According to simple regression analysis, the variable (cash flows in the project) has explained
41 about 53% of the variance in the axis of determining the budget.
42
43 4- According to the results of multiple regression analysis, the variables (the field of use of
44 follow-up tools, the field of comparison and analysis at the level of activities and work packages,
45 and the field of comparison and analysis at the level of control accounts) have explained about
46
93% of the variance in the axis of cost control.
47
48
Keywords: Cost Management, Estimate Costs, Determine Budget, Control Costs
49
50
51
52 2 Introduction
53 The construction sector is one of the most important sectors in terms of activity rates and
54
55
its overlap with the rest of the other economic sectors, as it provides job opportunities to absorb
56 labor, especially local, and during the past years, the Libyan state has monitored planning efforts
57
58 1
59
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 Project Management Journal Page 30 of 70

1
2
3 for development in the infrastructure, productivity, and service sectors, and in order to achieve
4
the quantitative goals of these plans, it required contracting for the implementation of large
5
6 numbers of construction projects in which national companies had a share of participation, and
7 by increasing the number and sizes of these projects, the weakness of the implementing agencies
8 appeared in administrative terms. The lack of qualified technical and specialized personnel, as
9 well as the lack of proper planning, implementation and follow-up processes, has negatively
10 affected the implementation of these projects, leading to their faltering and deviation from the
11 budgets allocated for their implementation and their delay in time plans.
12
13 Based on the close relationship between project management's planning, organization,
14
15
direction and control of enterprise resources and the achievement of the desired project
16 objectives, successful project management is based on achieving project objectives within the
17 approved cost limits, the required level of performance, using allocated resources efficiently and
18 effectively, and achieving project stakeholder satisfaction. [1]
19
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20 In fact, the deviation of the actual cost from the planned is common in construction
21 projects, and occurs cumulatively during the implementation of the project, so it is necessary to
22 apply cost management, because it includes managing the processes required to ensure that
23
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project work is completed within the approved budget, evaluating any changes that occur to it, as
24
25
a result of changes in the project scope, and setting a new budget baseline when necessary [2].
26
ee

27
There are studies that dealt with the causes and factors causing cost deviation in
28 construction projects, where a study [3] showed that one of the reasons for exceeding the cost is
29 that the contractor provided prices that are not studied accurately at the beginning of the contract,
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30 and a study [4] showed that erroneous estimates of the estimated cost are one of the reasons for
31 exceeding the cost, as well as a study [5] showed that the fluctuation in the prices of raw
32 materials and building materials is one of the reasons for exceeding the cost. Also, the delay of
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33
the owner in disbursing the extracts to the contractor is one of the reasons for the increase in the
34
35 cost in construction projects according to a study [6], and the lack of follow-up and cost control
36 is the most common factor associated with increasing the profit margin in construction projects
iew

37 according to a study [7]

38
39 From here, the researcher believes that the application of cost management processes
40 from: developing a plan, estimating costs, determining the budget, and controlling the cost in the
41 planning and implementation stages of construction projects Hence, it is clear that there is a lack
42 of previous local studies, as they did not address the extent to which the implementing agencies
43
apply cost management processes in construction projects, and since one of the objectives of
44
45 scientific research is to start from where others ended, in order to clarify the ambiguity, detail the
46 total, collect the dispersed, or complete the missing [8], so it was necessary to know in some
47 detail the extent to which the implementing agencies apply cost management processes in
48 planning and implementing construction projects, and compare it with what is stipulated in the
49 guide Knowledge of project management in Chapter VII on cost management, by following the
50 descriptive approach and the analytical approach, and using the questionnaire tool to inquire
51
52
about the reality of cost management, in order to identify deficiencies and defects in its
53 application, which represents the research problem.
54
55
56
57
58 2
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3
4
3 Literature review
5 Previous studies related to the variables of the current study such as [4], [5] as well as [6],
6 [9], [10] showed a number of reasons and factors that led to the deviation of the actual cost from
7 the planned cost in construction projects, and therefore the research problem is that there is an
8 urgent need to identify shortcomings and shortcomings in the process of estimating the financial
9
10
resources necessary to implement project activities and the process of controlling costs,
11 including the comparison it contains. Analyze the project budget spent with the value of the work
12 performed. study [11] was the most prominent of its results Failure to put in place the necessary
13 precautions to confront emergencies and potential risks, delays in paying compensation for
14 citizens’ real estate ownership, poor planning in schedules of quantities and specifications, and
15 failure to employ engineering management tools and mechanisms; To choose the appropriate
16 contractor and project manager, as well as new regulations, laws, and administrative routine. One
17
18
of the reasons for increasing costs, and [12] The most prominent results were that the variable
19 cost of transporting construction materials and equipment had the highest arithmetic mean,
Fo
20 followed by the variable of fluctuation in prices of construction materials and equipment, and
21 followed by the variable availability of a financial flow plan at the implementing agency, in the
22 financial aspects group. The results of a study [13] also showed the presence of (20) factors
23
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affecting the cost control process collected from personal interviews with experts, and they were
24
arranged according to the relative importance index, including: the factor of change orders, the
25
26 factor of changes in designs and design errors, the factor of the economic situation of the
ee

27 country, the factor of high prices of construction materials, the factor of project delay and the
28 factor of inaccurate cost estimates. The results of applying the activity-based cost (ABC) method
29 in the case study showed a clear effect, and there is a discrepancy in estimating the cost of
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30 overhead activities compared to traditional methods of cost estimation, which leads to obtaining
31 a better price for tenders, The study recommended the adoption of the activity-based cost (ABC)
32
method to obtain more accurate estimates of the cost of activities in the project.
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33
34
The results of a study [14] also showed that factors affecting cost management in
35
36 construction projects include changes in designs, weak management on site, delayed payment of
iew

37 dues to the implementing agency by the owner, and fluctuation in the prices of construction
38 materials. As for the year 2020, the results of a study [15] showed that the factor of shortage of
39 construction materials and their availability, and the factor of shortage of construction equipment
40 and its spare parts from the group of external factors had the highest value for the relative
41 importance index in the general ranking, followed by the factor of accelerating the pace of work
42
43
required of the owner, followed by the factor of changes that The scope of work, specifications,
44 or construction materials are changed by the owner from the group of factors related to the
45 owner, followed by the factor of errors during implementation and the factor of lack of skilled
46 labor from the group of factors related to the contractor. The results of the study also showed that
47 fluctuation in raw material prices, weak project management, and weak cost control and control
48 are factors causing increased costs in construction projects in Sarawak, Malaysia.
49
50 While the results of a study [10] in 2020 showed that the factor of the level of experience
51
of the cost estimation engineer had the highest value for the relative importance index in the list
52
53 of factors affecting the cost estimation process in the group of factors related to evaluating the
54 cost estimation process, followed by the factor of the possibility of obtaining a database for
55 similar projects, followed by The factor of accuracy of the information collected from the site
56 before carrying out the estimation process, followed by the factor of the procedure followed in
57
58 3
59
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 Project Management Journal Page 32 of 70

1
2
3 updating information in the cost estimation process, followed by the factor of accuracy of the
4
assumptions used in the cost estimation process.
5
6
The factor of prices of construction materials and their availability received the highest
7
8 value of the relative importance index in the list of factors affecting the cost estimation process
9 in the group of market factors and external factors, followed by the factor of fluctuation of the
10 exchange rate of the local currency, followed by the factor of the availability and productivity of
11 labor and construction equipment, followed by the factor of the economic situation of the
12 country.
13
14
15
16
4 Methodology
17 In order to achieve the objectives of the study, the descriptive approach and the analytical
18 approach were followed to describe the phenomenon that is the subject of the study, analyze its
19 data, and determine the relationship between its variables and the opinions that are presented
Fo
20 about it In order to reach the results of the study. [8]Defines the descriptive method as the
21
22
method in which the researcher describes a particular phenomenon, and then analyzes its
23 characteristics and the factors affecting it. Likewise, [16] defined the descriptive method as the
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24 method used to study and clarify the characteristics of the phenomenon, or an interpretation of an
25 existing situation. In fact and determine their relationship within the framework of the variables
26 surrounding them.
ee

27
28 4.1 Personal interviews:
29
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30 The practical study relied on conducting personal interviews with some project
31 managers and engineers working for agencies implementing construction projects to
32 find out some data related to the study.
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33
34 4.2 Questionnaire design
35 It was designed to evaluate the extent to which implementing agencies apply cost
36
iew

management processes in planning and implementing construction projects, based on three main
37
38 axes, as stipulated in the Project Management Knowledge Guide (PMBOK), which are as
39 follows:
40
41 1- The first axis: estimating the costs of the project, which aims to estimate the
42 financial resources necessary to complete the project work, and was measured in
43 statements from (1 to 22) distributed over six sub-areas: (the field of developing a
44 work breakdown structure, the field of resource planning in the project, the field of
45 estimating the direct costs of resources, the field of estimating the administrative
46
47
expenses of the project, the field of estimating the costs of risks in the project, and
48 the field of estimating the quality costs of the project).
49 2- The second axis: determining the budget of the project, which aims to calculate the
50 total estimated costs for each activity separately, or at the level of work packages,
51 in order to establish an approved reference line for cost in addition to administrative
52 costs, and was measured in statements from (23 to 51) distributed over three sub-
53
areas: (the field of aggregation of costs at the level of work packages and control
54
55
accounts, the field of aggregation of costs at the project level, and the field of cash
56 flows).
57
58 4
59
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1
2
3 3- The third axis: controlling costs in the project, which aims to monitor the status of
4
the project, in order to challenge the modernization of project costs, manage
5
6 changes in the cost reference line, and take the necessary preventive and corrective
7 measures to restore the workflow according to the planned schedule and budget,
8 and was measured in phrases from (31 to 21.3) distributed over six sub-areas: (the
9 field of collecting data on the progress of work in the project, the field of using
10 follow-up tools in controlling costs, the field of comparison and analysis at the
11 level of activities and work packages, the field of comparison and analysis on The
12
13
level of control accounts, the field of comparison and analysis at the project level,
14 the field of updating and documentation)
15
16
17 5 Results and Discussion
18
19 5.1 Descriptive analysis of the cost estimation axis:
Fo
20
21 The results of the statistical analysis showed that the total value of the weighted avarage
22 mean for the items in the cost estimation axis reached 1.68 degrees, with a standard deviation of
23
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0.230, which indicates a fairly applied level according to the triple Likert scale, according to the
24 point of view of the study sample members. In addition, the coefficient of variation does not
25 constitute Except for about 13.60%, which indicates that there is 86.4% homogeneity between
26
ee

the answers of the study sample members regarding the degree of application of the axis. It is
27
28 also noted from Figure (1) that the highest arithmetic average for the domains that make up this
29 axis from the study sample members’ point of view is 2.09. The field of estimating the direct
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30 costs of resources in the project, with a standard deviation of 0.390 and a coefficient of variation
31 of 18.8%, and a somewhat applied level, followed in the ranking by the field of establishing the
32 work breakdown structure with an arithmetic mean of 1.88 and a standard deviation of 0.22, and
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33 the field of resource planning in the project came in third place with an arithmetic mean of 1.84
34
35
and a standard deviation of 0.21.
36
iew

The field of estimating risk costs in the project came in fourth place, with a mean of 1.7
37
38 and a standard deviation of 0.31, followed in fifth place by the field of estimating quality costs in
39 the project with a mean of 1.33, a standard deviation of 0.369, and a level not applicable. In last
40 place came the field of estimating project administrative expenses with a mean of 1.28. Standard
41 deviation of 0.33, at a level not applied according to the application scale.
42
43 In order to determine the extent of the partial and total contribution of variables (project
44 quality cost estimation field, project administrative expense estimation field, project risk cost
45 estimation field) in explaining the variance in the dependent variable (project cost estimate), a
46
47
multiple linear regression analysis test was performed, and the conditions of linearity, normal
48 distribution of random errors, their independence, homogeneity of variance, and the absence of
49 influential anomalous values were verified to test the null hypothesis (Ho): All partial linear
50 regression coefficients are equal to zero, versus the alternative hypothesis (H1): there is at least
51 one partial linear regression coefficient that is not equal to zero, and Table (1) shows the test
52 results
53
54
55
56
57
58 5
59
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 Project Management Journal Page 34 of 70

1
2
3
4
5 the field of estimating the quality costs of
6 the project
7
the field of estimating the costs of risks
8
in the project
9
10 the field of estimating the administrative
11 expenses of the project
12 the field of estimating the direct costs of
13 resources
14 the field of resource planning in the
15 project
16
17 the field of developing a work
18 breakdown structure
19
0 0.5 1 1.5 2 2.5
Fo
20
21
22 Figure (1) Averages of the areas of the cost estimation axis according to the opinions of the study sample members
23
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24
25
26 Table (1) Summary of multiple regression analysis to explain the variance in the cost estimate variable for the
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27 project
28
29 R² R² R
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30 sig sig Adjusted The Multiple Explanatory Dependent

31 V.I.F t β F
32 (t) (f) coefficient of coefficient of correlation variables variable
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33 determination determination coefficient

34
35 Estimating the
2.40 0.00 6.0 0.308
36
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costs of risks
37
38 Estimating
Estimating
39 2.92 0.00 5.39 0.280 administrative
40 0.001 152.42 0.912 0.918 0.958 the cost of
41 expenses
the project
42 Estimating the
43
44 2.46 0.003 3.20 0.141 costs of
45 quality
46
47
48
49 It is clear from the results of Table (1) that the regression model is significant through the
50 value of (P) of (152.42) in terms of (0.001) smaller than the level of significance (0.05), and the
51 results explain that the interpreted variables explain 91.2% of the variance in the cost estimate
52 variable for the project, given the value of the adjusted coefficient of determination, and the beta
53
value that shows the relationship between the cost estimate of the project and the risk cost
54
55 estimate variable with a value of (0.308) is significant, as this can be deduced from the value of
56 (T) and the associated significance The beta value of the administrative expense estimation
57
58 6
59
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Page 35 of 70 Project Management Journal

1
2
3 variable and the quality cost estimate variable (0.280) and (0.141) respectively were significant.
4
The table also shows the results of the multilinear test where the result revealed that the largest
5
6 value of the variance amplification factor in the model (2.92) is less than (10), which indicates
7 that there is no problem of linear multiplicity between the variables of the model. Based on the
8 above analysis, we reject the null hypothesis and accept the alternative hypothesis, which states
9 that there is at least one partial linear regression coefficient that is not equal to zero.
10
11 5.2 Descriptive analysis of the budget axis:
12
13 The results of the statistical analysis showed that the total value of the weighted avarage
14 mean of the paragraphs of the budget axis according to the point of view of the members of the
15 study sample reached 2.09 degrees with a standard deviation of 0.175, which indicates a level
16
applied to some extent according to the triple Likert scale, in addition to that the coefficient of
17
18 variation is only about 8.37%, which indicates that there is a homogeneity of 91.63% between
19 the answers of the study sample members on the degree of application of the axis, as can be seen
Fo
20 from Figure (2) that the highest An avarage mean for the areas that make up this axis from the
21 point of view of the study sample members is 2.78 for the field of cost aggregation at the level of
22 work packages and control accounts with a standard deviation of 0.277 and a coefficient of
23
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variation of 9.92% and an applied level, followed by the cost aggregation field at the project
24
25
level with an arithmetic mean of 2.02 and a standard deviation of 0.260, followed by the project
26 cash flow field in third place with an arithmetic mean of 1.47 and a standard deviation of 0.300.
ee

27
28
29
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30
31
32
ev

33
34 Project cash flow area
35
36
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37
38 Project-level cost aggregation area
39
40
41
42 Scope of aggregation of costs at the level of
43 work packages and control accounts
44
45
46 0 0.5 1 1.5 2 2.5 3
47
48
49 Figure( 2) averages of the areas of the budget axis according to the opinions of the study sample members
50
51 To determine the contribution of the variable (project cash flows) to the interpretation of
52 the variance in the dependent variable (budget determination), a simple linear regression analysis
53 test was performed, and the conditions of linearity, the normal distribution of random errors,
54 were verified to test the null hypothesis (Ho): that the linear regression coefficient (β flows) is
55
56
57
58 7
59
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 Project Management Journal Page 36 of 70

1
2
3 equal to zero, against the alternative hypothesis (H1): which is the linear regression coefficient is
4
not equal to zero, and Table (2) shows the test results.
5
6
7
8 Table (2) Summary of simple linear regression analysis to explain variance in the budgeting variable
9 R² R² R
10
11 sig sig Adjusted The Multiple Explanatory Dependent
t β F
12 (t) (f) coefficient of coefficient of correlation variables variable
13
14 determination determination coefficient
15 the field of
16 Determine
project cash
17 0.001 7.141 0.430 0.001 50.99 0.532 0.543 0.737 the project
18 flow
budget
19
Fo
20
21
22
23 It is clear from the results in Table (2) that the regression model is significant, through the
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24 value of (P) of (50.99) in terms of (0.001) is less than the level of significance (0.05), and the
25 results explain that the cash flow variable explains 53.2% of the variance in the budgeting
26 variable for the project, given the value of the adjusted determination coefficient, and the beta
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27
value, which shows the relationship between the two variables with a value of (0.430), is
28
29 significant, as this can be deduced from the value of (T) and the associated significance, and
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30 based on We reject the null hypothesis, and accept the alternative hypothesis, which states that
31 the linear regression coefficient of the cash flow variable is not equal to zero.
32
5.3 Descriptive analysis of the cost control axis:
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33
34
35 The results of the study showed that the members of the study sample believe that the total
36
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value of the weighted avarage mean of the paragraphs of the cost control axis is 1.71 degrees and
37 a standard deviation of 0.254, which indicates a level applied to some extent according to the
38 triple Likert scale, and that the coefficient of variation is only 14.85%, which indicates that there
39
is a homogeneity of 85.15% between the answers of the study sample members on the degree of
40
41
application of the axis, as can be seen from Figure (3) that the highest arithmetic average for the
42 areas that make up this axis From the point of view of the study sample members is 2.07 for the
43 field of collecting data on the progress of work in the project with a standard deviation of 0.250
44 and a coefficient of variation of 12% and a level applied to some extent, followed in the ranking
45 by the field of comparison and analysis at the project level with an arithmetic mean of 2.0 and a
46 standard deviation of 0.150, and came in the penultimate and last place the field of comparison
47
and analysis at the level of activities and work packages and the field of using follow-up tools in
48
49 controlling costs with an arithmetic mean (1.62 and a standard deviation of 0.730, 1.24 and a
50 standard deviation of 0.30) respectively.
51
52
53
54
55
56
57
58 8
59
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Page 37 of 70 Project Management Journal

1
2
3
4
5
6 Project-level comparison and analysis
7
Field of modernization and
8
documentation
9
10
11 The use of follow-up tools in cost control
12
13 Work progress data collection
14 The field of comparison and analysis at
15 the level of control accounts
16
17 The field of comparison and analysis at
18 the level of activities and work packages
19
0.00 0.50 1.00 1.50 2.00 2.50
Fo
20
21
22 Figure (3) averages of the areas of cost control axis according to the opinions of the study sample members
23
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24 To determine the extent to which the partial and total contribution of variables (the domain
25 of using follow-up tools in cost control, the field of comparison and analysis at the level of
26
ee

27
activities and work packages, and the field of comparison and analysis at the level of control
28 accounts) in the interpretation of variance in the dependent variable (cost control of the project),
29 a multiple linear regression analysis test was performed, and the conditions of linearity, normal
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30 distribution of random errors, their independence, homogeneity of variance, and the absence of
31 influential outliers were verified to test the null hypothesis (Ho): All partial linear regression
32 coefficients are equal to zero, versus the alternative hypothesis (H 1): there is at least one partial
ev

33
linear regression coefficient that is not equal to zero, and the test results are shown in Table (3).
34
35 Table (3) Summary of multiple regression analysis to explain the variance in the cost control variable of the project
36
iew

R² R² R
37
38 sig sig Adjusted The Multiple Explanatory Dependent
V.I.F t β F
39 (t) (f) coefficient of coefficient of correlation variables variable
40
41 determination determination coefficient
42 Use follow-up
43 1.04 0.00 7.54 0.248
tools
44
45 Comparison and
46
analysis across
47 1.71 0.00 11.00 0.188 Cost
48 activities and
49 0.001 224.39 0.938 0.943 0.971 control in
work packages
50 the project
51 Comparison and
52 analysis at the
53 1.67 0.00 9.58 0.163
54 level of control
55 accounts
56
57
58 9
59
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 Project Management Journal Page 38 of 70

1
2
3 It is clear from the results of Table (3) that the regression model is significant through the
4
value of (P) of (224.39) in terms of (0.001) is smaller than the level of significance (0.05), and
5
6 the results explain that the interpreted variables explain 93.8% of the variance in the cost control
7 variable for the project, given the value of the adjusted coefficient, and the beta value that
8 illustrates the relationship between the cost control of the project and the variable of using
9 follow-up tools with a value of (0.248) is significant, as this can be deduced from the value of
10 (T) and the associated significance Also, the beta value of the comparison and analysis variable
11 at the level of activities and work packages and the comparison and analysis variable at the level
12
13
of control accounts (0.188) and (0.163) respectively was significant. The table also shows the
14 results of the multilinear test where the result revealed that the largest value of the variance
15 amplification factor in the model (1.71) is less than (10), which indicates that there is no problem
16 of linear multiplicity between the variables of the model. Based on the above analysis, we reject
17 the null hypothesis and accept the alternative hypothesis, which states that there is at least one
18 partial linear regression coefficient that is not equal to zero.
19
Fo
20 5.4 Discussion of the results of the study
21
22 1- Failure to use the bottom-up estimation method to estimate the cost of project
23 implementation activities, as the arithmetic average value of this paragraph was
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24 (1.27), and this comes in line with a study [13], which recommended adopting the
25 activity-based cost method to obtain more accurate estimates of the cost of
26 activities in the project.
ee

27
2- Deficiencies in estimating the costs of administrative expenses of the project, as the
28
29 value of the arithmetic average for this area was (1.28), and this comes in line with
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30 the study [13], and explains what was mentioned in the study [6], where the first
31 study concluded that there is a discrepancy in estimating the cost of overhead
32 activities as a result of applying the activity-based cost method compared to other
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33 traditional methods, while the second study showed in its results an increase in
34 indirect costs from their estimated value, as well as Consistent with a study [17],
35
36
which recommended that planning should be made to maintain optimal levels of
iew

37 corporate overhead costs.

38 3- Not including the cost reserves necessary to face the risks at the level of activities,
39 or at the level of work packages in the project, due to the failure to study the
40 expected risks, and develop response plans for them, and this comes in line with the
41 study [4], and the study [11], which recommended the need to study the risks that
42
may occur in the project, and to develop the necessary precautions to confront
43
44 them, as well as consistent with [1], which stated that one of the reasons for the
45 failure of projects related to the project planning and implementation process is the
46 poor application of the risk assessment process, as well as in line with [2], which
47 stated that the lack of an emergency reserve for risk management is one of the
48 reasons for the deviation in the cost of construction project
49 4- Failure to prepare financial flows statements for the project according to schedule,
50
in order to determine the incoming and outgoing financial flows according to the
51
52 dates of the financial payments agreed upon in the project implementation contract,
53 and to identify the sources of financing necessary to cover the negative flows, and
54 this comes in line with the study [4], and the study [18], where both of them
55 concluded that the contractor neglected the financial planning of the project, and
56
57
58 10
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Page 39 of 70 Project Management Journal

1
2
3 did not develop a plan for financial flows, which may result in financial bottlenecks
4
during the project implementation phase.
5
6 5- Failure to estimate the administrative reserves allocated from the project budget for
7 sudden works within the scope of project implementation work
8 6- Failure to create a detailed work breakdown structure for the project with, defining
9 the roles and responsibilities of the project team members, as the value of the
10 arithmetic average of the paragraphs of the scope of developing the work
11 breakdown structure was (1.88), and this comes in line with the study [13], and the
12
13
study [19], which recommended the importance of establishing a detailed work
14 breakdown structure that includes all project activities, and identifying the
15 responsible project team member at the level of work packages, in order to obtain
16 better results for the process of controlling and controlling the budget Project.
17 7- Deficiencies in the process of monitoring and controlling the cost at the level of
18 activities and work packages and the level of control calculations for the cost
19
elements (labor, equipment, construction materials) in the project, by conducting an
Fo
20
21 analysis of the variance between the actual costs of the cost elements with the
22 planned costs, and identifying deviations based on cost performance indicators and
23 schedule; Control accounts (1.62, 1.65) respectively, and this comes in line with a
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24 study [7], which recommended the need for the implementing authorities to prepare
25 weekly cost reports for labor and construction equipment used in the projec
26
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27
28
29
6 Conclusions
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30 1- The study found that the level of cost estimation applied in construction projects in
31 the city of Tripoli is limited, according to the result of the scale (applied to some
32 extent), according to the point of view of the members of the study sample.
ev

33 2- The study found that the level of the budget process applied in the construction
34
35
projects in the city of Tripoli is limited, according to the result of the scale (applied
36 to some extent), according to the point of view of the members of the study sample.
iew

37 3- The study found that the level of cost control process applied in construction
38 projects in the city of Tripoli is limited, according to the result of the scale (applied
39 to some extent), according to the point of view of the members of the study sample,
40 and in general the study found that the level of cost management applied in
41 construction projects in the city of Tripoli is limited.
42
43
4- The results of the multiple regression analysis showed that the variables (the field
44 of estimating quality costs in the project, the field of estimating the administrative
45 expenses of the project, and the field of estimating the risks in the project)
46 explained about 91% of the variation in the application of the cost estimation axis.
47 5- The results of the simple regression analysis showed that the variable (cash flows in
48 the project) explained about 53% of the variance in the application of the budgeting
49
axis.
50
51 6- The results of the multiple regression analysis showed that the variables (the field
52 of use of follow-up tools, the field of comparison and analysis at the level of
53 activities and work packages, and the field of comparison and analysis at the level
54 of control accounts) explained about 93% of the variance in the application of the
55 cost control axis.
56
57
58 11
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1
2
3
4
7 Recommendations
5 Based on the findings of the study, the researcher recommends addressing the noticeable
6
7
deficiencies in the application of cost management processes in construction projects in the city
8 of Tripoli as follows:
9
10 1- Raising the efficiency of engineering cadres in the implementing agencies, through
11 continuous training and intensifying specialized training courses and programs in
12 the field of project management and cost management processes in construction
13 projects.
14 2- Emphasizing the need to establish a detailed work breakdown structure that
15
includes all project implementation activities, through which accurate methods can
16
17 be used to estimate direct and indirect costs, as well as using its components as
18 control accounts to control and control project costs.
19 3- The implementing entities shall define the roles and responsibilities assigned to the
Fo
20 project team, and clarify the responsibility for controlling the costs of each
21 component in the project work breakdown structure.
22 4- The need to provide all documents, templates and information, related to cost
23
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estimation and budgeting.

24
25 5- Emphasizing the need to use accurate methods and tools in estimating the cost of
26 project implementation activities.
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27 6- Risks must be identified and evaluated during the project planning stage, and the
28 costs of facing them and the costs of quality requirements must be included during
29 the estimation process, in order to control deviations in the cost of implementing
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30 the project, and to ensure the achievement of the required level of quality.
31
7- Determining the budget necessary for the implementation of the project, preparing
32
the cash flow chart according to the schedule and determining the negative cash
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33
34 flows according to the dates of the extracts agreed upon in the project
35 implementation contract, with the need to find the necessary sources of financing to
36
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cover these flows, in order to avoid the budget deficit resulting from the delay in
37 paying the financial dues by the owner.
38
8- Using the earned value management tool to monitor and control the costs (labor,
39
40 equipment, construction materials) at the level of activities and work packages in
41 the project, in order to identify deviations in the cost of implementing the project,
42 take the necessary corrective actions, and achieve better results for the cost control
43 process.
44
45
46
47
48
49
50
51
52
53
54
55
56
57
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4
References
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6
7
8 [1] H. Kerzner, PROJECT MANAGEMENT: A Systems Approach to plannig, scheduling, and
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13 John Wiley & Sons,Inc, 2016.
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15 [3] H. Faiad, (Study of the reasons for the increase in the cost of construction projects in the city of
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[4] H. Acefao, Study of the factors that lead to the increase in cost in the projects of the Railway Project
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[5] I. Abdul-Rahman, A. Memon and A. Abd.Karim, "Significant Factors Causing Cost Overruns in
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47 [11] E. Khalil, (Study of the reasons for increasing the cost of infrastructure projects in the city of Al-
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50 [12] A. S. Aldalaeen, "Evaluation of the Variables Affecting on the Cost Management and Its Correlation
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7 [14] F. A. Albtoush, S. I. Doh, A. R. Bin Abdul Rahman and J. A. Albtoush, "FACTORS EFFECTING
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11
12 [15] A. M. Kamaruddeen, C. F. Sung and W. Wahi, "A Study on Factors Causing Cost Overrun of
13 Construction Projects in Sarawak, Malaysia," Civil Engineering and Architecture, vol. 8, 13 May
14 2020.
15
16 [16] Y. Alazabi and A. Almansouri, Guidance steps in writing scientific theses (Master’s and PhD), ‫األولى‬
17
18
ed., Benghazi: Dar alkotob alwataniya, 2017.
19
Fo
20 [17] A. A. Sadi, A. B. Abdulaziz, S. Atiyah and M. Al-Shahri, "The management of construction
21 company overhead costs," International Journal of Project Management, vol. 19, pp. 295-303, 10
22 January 2001.
23
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24
25
[18] M. Mansour, Using Earned Value Management to Manage Engineering Projects “An Applied Study
26 of Some Central Region Projects”, misrata: Libyan Academy for Graduate Studies, Unpublished
ee

27 Master Thesis, 2018.

28
29 [19] J. Valle and A. C. Soares, The Use of Earned Value Analysis in the Cost Management of
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Construction Projects in Brazil, Federal University, Brazil, 2015.
31
32
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33 [20] K. Harold, PROJECT MANAGEMENT: A Systems Approach to plannig, scheduling, and

34 controlling, new jersey: John Wiley & Sons, Inc., 2017.
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36
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4
Construction Cost Variance in Construction Projects Due to Contractor
5
6 “Applied Study Construction Projects in Tripoli City”
7
8 By: KHALED SALEH MUKHTAR ALAMMARI
9
10 Supervisor: ZAIDAN ALI HATUSH, Ph.D.
11
12
13 1 Abstract
14 The study aimed to assess the extent to which the implementing authorities of construction
15
16
projects in the city of Tripoli apply cost management processes, represented in the axis of cost
17 estimation, the axis of determining the budget, and the axis of cost control, by following the
18 descriptive approach and the analytical approach, where the study community consisted of
19 project managers and engineers working in the implementing agencies, and the sample was taken
Fo
20 in a simple random way, and after distributing (60) questionnaires to the study sample, (45) valid
21 forms for statistical analysis were retrieved. To analyze the data collected from the sample of the
22
study, and to achieve the objectives of the program, the computer was used and the program of
23
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24 statistical packages for the social sciences (SPSS) was used, where percentages, arithmetic
25 averages, and standard deviations were used, and multiple regression analysis was used to
26 determine the total partial contribution of the study fields to explain the variation in the study
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27 axes (cost estimation, budget determination, Cost control) This study concluded a set of results,
28 the most important of which are the following:
29
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30 1- The level of application of the implementing agencies for cost management operations in
31 construction projects within the city of Tripoli is limited, according to the result of the scale
32
(applied to some extent).
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33
34
2- According to the results of the multiple regression analysis, the variables (the field of
35
36 estimating quality costs in the project, the field of estimating the administrative expenses of the
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37 project, the field of estimating the costs of risks in the project) have explained about 91% of the
38 variation in the cost estimate axis.
39
40 3- According to simple regression analysis, the variable (cash flows in the project) has explained
41 about 53% of the variance in the axis of determining the budget.
42
43 4- According to the results of multiple regression analysis, the variables (the field of use of
44 follow-up tools, the field of comparison and analysis at the level of activities and work packages,
45 and the field of comparison and analysis at the level of control accounts) have explained about
46
93% of the variance in the axis of cost control.
47
48
Keywords: Cost Management, Estimate Costs, Determine Budget, Control Costs
49
50
51
52 2 Introduction
53 The construction sector is one of the most important sectors in terms of activity rates and
54
55
its overlap with the rest of the other economic sectors, as it provides job opportunities to absorb
56 labor, especially local, and during the past years, the Libyan state has monitored planning efforts
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58 1
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 Project Management Journal Page 44 of 70

1
2
3 for development in the infrastructure, productivity, and service sectors, and in order to achieve
4
the quantitative goals of these plans, it required contracting for the implementation of large
5
6 numbers of construction projects in which national companies had a share of participation, and
7 by increasing the number and sizes of these projects, the weakness of the implementing agencies
8 appeared in administrative terms. The lack of qualified technical and specialized personnel, as
9 well as the lack of proper planning, implementation and follow-up processes, has negatively
10 affected the implementation of these projects, leading to their faltering and deviation from the
11 budgets allocated for their implementation and their delay in time plans.
12
13 Based on the close relationship between project management's planning, organization,
14
15
direction and control of enterprise resources and the achievement of the desired project
16 objectives, successful project management is based on achieving project objectives within the
17 approved cost limits, the required level of performance, using allocated resources efficiently and
18 effectively, and achieving project stakeholder satisfaction. [1]
19
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20 In fact, the deviation of the actual cost from the planned is common in construction
21 projects, and occurs cumulatively during the implementation of the project, so it is necessary to
22 apply cost management, because it includes managing the processes required to ensure that
23
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project work is completed within the approved budget, evaluating any changes that occur to it, as
24
25
a result of changes in the project scope, and setting a new budget baseline when necessary [2].
26
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27
There are studies that dealt with the causes and factors causing cost deviation in
28 construction projects, where a study [3] showed that one of the reasons for exceeding the cost is
29 that the contractor provided prices that are not studied accurately at the beginning of the contract,
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30 and a study [4] showed that erroneous estimates of the estimated cost are one of the reasons for
31 exceeding the cost, as well as a study [5] showed that the fluctuation in the prices of raw
32 materials and building materials is one of the reasons for exceeding the cost. Also, the delay of
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33
the owner in disbursing the extracts to the contractor is one of the reasons for the increase in the
34
35 cost in construction projects according to a study [6], and the lack of follow-up and cost control
36 is the most common factor associated with increasing the profit margin in construction projects
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37 according to a study [7]

38
39 From here, the researcher believes that the application of cost management processes
40 from: developing a plan, estimating costs, determining the budget, and controlling the cost in the
41 planning and implementation stages of construction projects Hence, it is clear that there is a lack
42 of previous local studies, as they did not address the extent to which the implementing agencies
43
apply cost management processes in construction projects, and since one of the objectives of
44
45 scientific research is to start from where others ended, in order to clarify the ambiguity, detail the
46 total, collect the dispersed, or complete the missing [8], so it was necessary to know in some
47 detail the extent to which the implementing agencies apply cost management processes in
48 planning and implementing construction projects, and compare it with what is stipulated in the
49 guide Knowledge of project management in Chapter VII on cost management, by following the
50 descriptive approach and the analytical approach, and using the questionnaire tool to inquire
51
52
about the reality of cost management, in order to identify deficiencies and defects in its
53 application, which represents the research problem.
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3
4
3 Literature review
5 Previous studies related to the variables of the current study such as [4], [5] as well as [6],
6 [9], [10] showed a number of reasons and factors that led to the deviation of the actual cost from
7 the planned cost in construction projects, and therefore the research problem is that there is an
8 urgent need to identify shortcomings and shortcomings in the process of estimating the financial
9
10
resources necessary to implement project activities and the process of controlling costs,
11 including the comparison it contains. Analyze the project budget spent with the value of the work
12 performed. study [11] was the most prominent of its results Failure to put in place the necessary
13 precautions to confront emergencies and potential risks, delays in paying compensation for
14 citizens’ real estate ownership, poor planning in schedules of quantities and specifications, and
15 failure to employ engineering management tools and mechanisms; To choose the appropriate
16 contractor and project manager, as well as new regulations, laws, and administrative routine. One
17
18
of the reasons for increasing costs, and [12] The most prominent results were that the variable
19 cost of transporting construction materials and equipment had the highest arithmetic mean,
Fo
20 followed by the variable of fluctuation in prices of construction materials and equipment, and
21 followed by the variable availability of a financial flow plan at the implementing agency, in the
22 financial aspects group. The results of a study [13] also showed the presence of (20) factors
23
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affecting the cost control process collected from personal interviews with experts, and they were
24
arranged according to the relative importance index, including: the factor of change orders, the
25
26 factor of changes in designs and design errors, the factor of the economic situation of the
ee

27 country, the factor of high prices of construction materials, the factor of project delay and the
28 factor of inaccurate cost estimates. The results of applying the activity-based cost (ABC) method
29 in the case study showed a clear effect, and there is a discrepancy in estimating the cost of
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30 overhead activities compared to traditional methods of cost estimation, which leads to obtaining
31 a better price for tenders, The study recommended the adoption of the activity-based cost (ABC)
32
method to obtain more accurate estimates of the cost of activities in the project.
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33
34
The results of a study [14] also showed that factors affecting cost management in
35
36 construction projects include changes in designs, weak management on site, delayed payment of
iew

37 dues to the implementing agency by the owner, and fluctuation in the prices of construction
38 materials. As for the year 2020, the results of a study [15] showed that the factor of shortage of
39 construction materials and their availability, and the factor of shortage of construction equipment
40 and its spare parts from the group of external factors had the highest value for the relative
41 importance index in the general ranking, followed by the factor of accelerating the pace of work
42
43
required of the owner, followed by the factor of changes that The scope of work, specifications,
44 or construction materials are changed by the owner from the group of factors related to the
45 owner, followed by the factor of errors during implementation and the factor of lack of skilled
46 labor from the group of factors related to the contractor. The results of the study also showed that
47 fluctuation in raw material prices, weak project management, and weak cost control and control
48 are factors causing increased costs in construction projects in Sarawak, Malaysia.
49
50 While the results of a study [10] in 2020 showed that the factor of the level of experience
51
of the cost estimation engineer had the highest value for the relative importance index in the list
52
53 of factors affecting the cost estimation process in the group of factors related to evaluating the
54 cost estimation process, followed by the factor of the possibility of obtaining a database for
55 similar projects, followed by The factor of accuracy of the information collected from the site
56 before carrying out the estimation process, followed by the factor of the procedure followed in
57
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3 updating information in the cost estimation process, followed by the factor of accuracy of the
4
assumptions used in the cost estimation process.
5
6
The factor of prices of construction materials and their availability received the highest
7
8 value of the relative importance index in the list of factors affecting the cost estimation process
9 in the group of market factors and external factors, followed by the factor of fluctuation of the
10 exchange rate of the local currency, followed by the factor of the availability and productivity of
11 labor and construction equipment, followed by the factor of the economic situation of the
12 country.
13
14
15
16
4 Methodology
17 In order to achieve the objectives of the study, the descriptive approach and the analytical
18 approach were followed to describe the phenomenon that is the subject of the study, analyze its
19 data, and determine the relationship between its variables and the opinions that are presented
Fo
20 about it In order to reach the results of the study. [8]Defines the descriptive method as the
21
22
method in which the researcher describes a particular phenomenon, and then analyzes its
23 characteristics and the factors affecting it. Likewise, [16] defined the descriptive method as the
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24 method used to study and clarify the characteristics of the phenomenon, or an interpretation of an
25 existing situation. In fact and determine their relationship within the framework of the variables
26 surrounding them.
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27
28 4.1 Personal interviews:
29
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30 The practical study relied on conducting personal interviews with some project
31 managers and engineers working for agencies implementing construction projects to
32 find out some data related to the study.
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33
34 4.2 Questionnaire design
35 It was designed to evaluate the extent to which implementing agencies apply cost
36
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management processes in planning and implementing construction projects, based on three main
37
38 axes, as stipulated in the Project Management Knowledge Guide (PMBOK), which are as
39 follows:
40
41 1- The first axis: estimating the costs of the project, which aims to estimate the
42 financial resources necessary to complete the project work, and was measured in
43 statements from (1 to 22) distributed over six sub-areas: (the field of developing a
44 work breakdown structure, the field of resource planning in the project, the field of
45 estimating the direct costs of resources, the field of estimating the administrative
46
47
expenses of the project, the field of estimating the costs of risks in the project, and
48 the field of estimating the quality costs of the project).
49 2- The second axis: determining the budget of the project, which aims to calculate the
50 total estimated costs for each activity separately, or at the level of work packages,
51 in order to establish an approved reference line for cost in addition to administrative
52 costs, and was measured in statements from (23 to 51) distributed over three sub-
53
areas: (the field of aggregation of costs at the level of work packages and control
54
55
accounts, the field of aggregation of costs at the project level, and the field of cash
56 flows).
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3 3- The third axis: controlling costs in the project, which aims to monitor the status of
4
the project, in order to challenge the modernization of project costs, manage
5
6 changes in the cost reference line, and take the necessary preventive and corrective
7 measures to restore the workflow according to the planned schedule and budget,
8 and was measured in phrases from (31 to 21.3) distributed over six sub-areas: (the
9 field of collecting data on the progress of work in the project, the field of using
10 follow-up tools in controlling costs, the field of comparison and analysis at the
11 level of activities and work packages, the field of comparison and analysis on The
12
13
level of control accounts, the field of comparison and analysis at the project level,
14 the field of updating and documentation)
15
16
17 5 Results and Discussion
18
19 5.1 Descriptive analysis of the cost estimation axis:
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20
21 The results of the statistical analysis showed that the total value of the weighted avarage
22 mean for the items in the cost estimation axis reached 1.68 degrees, with a standard deviation of
23
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0.230, which indicates a fairly applied level according to the triple Likert scale, according to the
24 point of view of the study sample members. In addition, the coefficient of variation does not
25 constitute Except for about 13.60%, which indicates that there is 86.4% homogeneity between
26
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the answers of the study sample members regarding the degree of application of the axis. It is
27
28 also noted from Figure (1) that the highest arithmetic average for the domains that make up this
29 axis from the study sample members’ point of view is 2.09. The field of estimating the direct
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30 costs of resources in the project, with a standard deviation of 0.390 and a coefficient of variation
31 of 18.8%, and a somewhat applied level, followed in the ranking by the field of establishing the
32 work breakdown structure with an arithmetic mean of 1.88 and a standard deviation of 0.22, and
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33 the field of resource planning in the project came in third place with an arithmetic mean of 1.84
34
35
and a standard deviation of 0.21.
36
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The field of estimating risk costs in the project came in fourth place, with a mean of 1.7
37
38 and a standard deviation of 0.31, followed in fifth place by the field of estimating quality costs in
39 the project with a mean of 1.33, a standard deviation of 0.369, and a level not applicable. In last
40 place came the field of estimating project administrative expenses with a mean of 1.28. Standard
41 deviation of 0.33, at a level not applied according to the application scale.
42
43 In order to determine the extent of the partial and total contribution of variables (project
44 quality cost estimation field, project administrative expense estimation field, project risk cost
45 estimation field) in explaining the variance in the dependent variable (project cost estimate), a
46
47
multiple linear regression analysis test was performed, and the conditions of linearity, normal
48 distribution of random errors, their independence, homogeneity of variance, and the absence of
49 influential anomalous values were verified to test the null hypothesis (Ho): All partial linear
50 regression coefficients are equal to zero, versus the alternative hypothesis (H1): there is at least
51 one partial linear regression coefficient that is not equal to zero, and Table (1) shows the test
52 results
53
54
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3
4
5 the field of estimating the quality costs of
6 the project
7
the field of estimating the costs of risks
8
in the project
9
10 the field of estimating the administrative
11 expenses of the project
12 the field of estimating the direct costs of
13 resources
14 the field of resource planning in the
15 project
16
17 the field of developing a work
18 breakdown structure
19
0 0.5 1 1.5 2 2.5
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20
21
22 Figure (1) Averages of the areas of the cost estimation axis according to the opinions of the study sample members
23
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24
25
26 Table (1) Summary of multiple regression analysis to explain the variance in the cost estimate variable for the
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27 project
28
29 R² R² R
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30 sig sig Adjusted The Multiple Explanatory Dependent

31 V.I.F t β F
32 (t) (f) coefficient of coefficient of correlation variables variable
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33 determination determination coefficient

34
35 Estimating the
2.40 0.00 6.0 0.308
36
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costs of risks
37
38 Estimating
Estimating
39 2.92 0.00 5.39 0.280 administrative
40 0.001 152.42 0.912 0.918 0.958 the cost of
41 expenses
the project
42 Estimating the
43
44 2.46 0.003 3.20 0.141 costs of
45 quality
46
47
48
49 It is clear from the results of Table (1) that the regression model is significant through the
50 value of (P) of (152.42) in terms of (0.001) smaller than the level of significance (0.05), and the
51 results explain that the interpreted variables explain 91.2% of the variance in the cost estimate
52 variable for the project, given the value of the adjusted coefficient of determination, and the beta
53
value that shows the relationship between the cost estimate of the project and the risk cost
54
55 estimate variable with a value of (0.308) is significant, as this can be deduced from the value of
56 (T) and the associated significance The beta value of the administrative expense estimation
57
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3 variable and the quality cost estimate variable (0.280) and (0.141) respectively were significant.
4
The table also shows the results of the multilinear test where the result revealed that the largest
5
6 value of the variance amplification factor in the model (2.92) is less than (10), which indicates
7 that there is no problem of linear multiplicity between the variables of the model. Based on the
8 above analysis, we reject the null hypothesis and accept the alternative hypothesis, which states
9 that there is at least one partial linear regression coefficient that is not equal to zero.
10
11 5.2 Descriptive analysis of the budget axis:
12
13 The results of the statistical analysis showed that the total value of the weighted avarage
14 mean of the paragraphs of the budget axis according to the point of view of the members of the
15 study sample reached 2.09 degrees with a standard deviation of 0.175, which indicates a level
16
applied to some extent according to the triple Likert scale, in addition to that the coefficient of
17
18 variation is only about 8.37%, which indicates that there is a homogeneity of 91.63% between
19 the answers of the study sample members on the degree of application of the axis, as can be seen
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20 from Figure (2) that the highest An avarage mean for the areas that make up this axis from the
21 point of view of the study sample members is 2.78 for the field of cost aggregation at the level of
22 work packages and control accounts with a standard deviation of 0.277 and a coefficient of
23
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variation of 9.92% and an applied level, followed by the cost aggregation field at the project
24
25
level with an arithmetic mean of 2.02 and a standard deviation of 0.260, followed by the project
26 cash flow field in third place with an arithmetic mean of 1.47 and a standard deviation of 0.300.
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27
28
29
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30
31
32
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33
34 Project cash flow area
35
36
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37
38 Project-level cost aggregation area
39
40
41
42 Scope of aggregation of costs at the level of
43 work packages and control accounts
44
45
46 0 0.5 1 1.5 2 2.5 3
47
48
49 Figure( 2) averages of the areas of the budget axis according to the opinions of the study sample members
50
51 To determine the contribution of the variable (project cash flows) to the interpretation of
52 the variance in the dependent variable (budget determination), a simple linear regression analysis
53 test was performed, and the conditions of linearity, the normal distribution of random errors,
54 were verified to test the null hypothesis (Ho): that the linear regression coefficient (β flows) is
55
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 Project Management Journal Page 50 of 70

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3 equal to zero, against the alternative hypothesis (H1): which is the linear regression coefficient is
4
not equal to zero, and Table (2) shows the test results.
5
6
7
8 Table (2) Summary of simple linear regression analysis to explain variance in the budgeting variable
9 R² R² R
10
11 sig sig Adjusted The Multiple Explanatory Dependent
t β F
12 (t) (f) coefficient of coefficient of correlation variables variable
13
14 determination determination coefficient
15 the field of
16 Determine
project cash
17 0.001 7.141 0.430 0.001 50.99 0.532 0.543 0.737 the project
18 flow
budget
19
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20
21
22
23 It is clear from the results in Table (2) that the regression model is significant, through the
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24 value of (P) of (50.99) in terms of (0.001) is less than the level of significance (0.05), and the
25 results explain that the cash flow variable explains 53.2% of the variance in the budgeting
26 variable for the project, given the value of the adjusted determination coefficient, and the beta
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27
value, which shows the relationship between the two variables with a value of (0.430), is
28
29 significant, as this can be deduced from the value of (T) and the associated significance, and
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30 based on We reject the null hypothesis, and accept the alternative hypothesis, which states that
31 the linear regression coefficient of the cash flow variable is not equal to zero.
32
5.3 Descriptive analysis of the cost control axis:
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33
34
35 The results of the study showed that the members of the study sample believe that the total
36
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value of the weighted avarage mean of the paragraphs of the cost control axis is 1.71 degrees and
37 a standard deviation of 0.254, which indicates a level applied to some extent according to the
38 triple Likert scale, and that the coefficient of variation is only 14.85%, which indicates that there
39
is a homogeneity of 85.15% between the answers of the study sample members on the degree of
40
41
application of the axis, as can be seen from Figure (3) that the highest arithmetic average for the
42 areas that make up this axis From the point of view of the study sample members is 2.07 for the
43 field of collecting data on the progress of work in the project with a standard deviation of 0.250
44 and a coefficient of variation of 12% and a level applied to some extent, followed in the ranking
45 by the field of comparison and analysis at the project level with an arithmetic mean of 2.0 and a
46 standard deviation of 0.150, and came in the penultimate and last place the field of comparison
47
and analysis at the level of activities and work packages and the field of using follow-up tools in
48
49 controlling costs with an arithmetic mean (1.62 and a standard deviation of 0.730, 1.24 and a
50 standard deviation of 0.30) respectively.
51
52
53
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4
5
6 Project-level comparison and analysis
7
Field of modernization and
8
documentation
9
10
11 The use of follow-up tools in cost control
12
13 Work progress data collection
14 The field of comparison and analysis at
15 the level of control accounts
16
17 The field of comparison and analysis at
18 the level of activities and work packages
19
0.00 0.50 1.00 1.50 2.00 2.50
Fo
20
21
22 Figure (3) averages of the areas of cost control axis according to the opinions of the study sample members
23
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24 To determine the extent to which the partial and total contribution of variables (the domain
25 of using follow-up tools in cost control, the field of comparison and analysis at the level of
26
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27
activities and work packages, and the field of comparison and analysis at the level of control
28 accounts) in the interpretation of variance in the dependent variable (cost control of the project),
29 a multiple linear regression analysis test was performed, and the conditions of linearity, normal
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30 distribution of random errors, their independence, homogeneity of variance, and the absence of
31 influential outliers were verified to test the null hypothesis (Ho): All partial linear regression
32 coefficients are equal to zero, versus the alternative hypothesis (H 1): there is at least one partial
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33
linear regression coefficient that is not equal to zero, and the test results are shown in Table (3).
34
35 Table (3) Summary of multiple regression analysis to explain the variance in the cost control variable of the project
36
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R² R² R
37
38 sig sig Adjusted The Multiple Explanatory Dependent
V.I.F t β F
39 (t) (f) coefficient of coefficient of correlation variables variable
40
41 determination determination coefficient
42 Use follow-up
43 1.04 0.00 7.54 0.248
tools
44
45 Comparison and
46
analysis across
47 1.71 0.00 11.00 0.188 Cost
48 activities and
49 0.001 224.39 0.938 0.943 0.971 control in
work packages
50 the project
51 Comparison and
52 analysis at the
53 1.67 0.00 9.58 0.163
54 level of control
55 accounts
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3 It is clear from the results of Table (3) that the regression model is significant through the
4
value of (P) of (224.39) in terms of (0.001) is smaller than the level of significance (0.05), and
5
6 the results explain that the interpreted variables explain 93.8% of the variance in the cost control
7 variable for the project, given the value of the adjusted coefficient, and the beta value that
8 illustrates the relationship between the cost control of the project and the variable of using
9 follow-up tools with a value of (0.248) is significant, as this can be deduced from the value of
10 (T) and the associated significance Also, the beta value of the comparison and analysis variable
11 at the level of activities and work packages and the comparison and analysis variable at the level
12
13
of control accounts (0.188) and (0.163) respectively was significant. The table also shows the
14 results of the multilinear test where the result revealed that the largest value of the variance
15 amplification factor in the model (1.71) is less than (10), which indicates that there is no problem
16 of linear multiplicity between the variables of the model. Based on the above analysis, we reject
17 the null hypothesis and accept the alternative hypothesis, which states that there is at least one
18 partial linear regression coefficient that is not equal to zero.
19
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20 5.4 Discussion of the results of the study
21
22 1- Failure to use the bottom-up estimation method to estimate the cost of project
23 implementation activities, as the arithmetic average value of this paragraph was
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24 (1.27), and this comes in line with a study [13], which recommended adopting the
25 activity-based cost method to obtain more accurate estimates of the cost of
26 activities in the project.
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27
2- Deficiencies in estimating the costs of administrative expenses of the project, as the
28
29 value of the arithmetic average for this area was (1.28), and this comes in line with
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30 the study [13], and explains what was mentioned in the study [6], where the first
31 study concluded that there is a discrepancy in estimating the cost of overhead
32 activities as a result of applying the activity-based cost method compared to other
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33 traditional methods, while the second study showed in its results an increase in
34 indirect costs from their estimated value, as well as Consistent with a study [17],
35
36
which recommended that planning should be made to maintain optimal levels of
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37 corporate overhead costs.

38 3- Not including the cost reserves necessary to face the risks at the level of activities,
39 or at the level of work packages in the project, due to the failure to study the
40 expected risks, and develop response plans for them, and this comes in line with the
41 study [4], and the study [11], which recommended the need to study the risks that
42
may occur in the project, and to develop the necessary precautions to confront
43
44 them, as well as consistent with [1], which stated that one of the reasons for the
45 failure of projects related to the project planning and implementation process is the
46 poor application of the risk assessment process, as well as in line with [2], which
47 stated that the lack of an emergency reserve for risk management is one of the
48 reasons for the deviation in the cost of construction project
49 4- Failure to prepare financial flows statements for the project according to schedule,
50
in order to determine the incoming and outgoing financial flows according to the
51
52 dates of the financial payments agreed upon in the project implementation contract,
53 and to identify the sources of financing necessary to cover the negative flows, and
54 this comes in line with the study [4], and the study [18], where both of them
55 concluded that the contractor neglected the financial planning of the project, and
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1
2
3 did not develop a plan for financial flows, which may result in financial bottlenecks
4
during the project implementation phase.
5
6 5- Failure to estimate the administrative reserves allocated from the project budget for
7 sudden works within the scope of project implementation work
8 6- Failure to create a detailed work breakdown structure for the project with, defining
9 the roles and responsibilities of the project team members, as the value of the
10 arithmetic average of the paragraphs of the scope of developing the work
11 breakdown structure was (1.88), and this comes in line with the study [13], and the
12
13
study [19], which recommended the importance of establishing a detailed work
14 breakdown structure that includes all project activities, and identifying the
15 responsible project team member at the level of work packages, in order to obtain
16 better results for the process of controlling and controlling the budget Project.
17 7- Deficiencies in the process of monitoring and controlling the cost at the level of
18 activities and work packages and the level of control calculations for the cost
19
elements (labor, equipment, construction materials) in the project, by conducting an
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20
21 analysis of the variance between the actual costs of the cost elements with the
22 planned costs, and identifying deviations based on cost performance indicators and
23 schedule; Control accounts (1.62, 1.65) respectively, and this comes in line with a
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24 study [7], which recommended the need for the implementing authorities to prepare
25 weekly cost reports for labor and construction equipment used in the projec
26
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27
28
29
6 Conclusions
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30 1- The study found that the level of cost estimation applied in construction projects in
31 the city of Tripoli is limited, according to the result of the scale (applied to some
32 extent), according to the point of view of the members of the study sample.
ev

33 2- The study found that the level of the budget process applied in the construction
34
35
projects in the city of Tripoli is limited, according to the result of the scale (applied
36 to some extent), according to the point of view of the members of the study sample.
iew

37 3- The study found that the level of cost control process applied in construction
38 projects in the city of Tripoli is limited, according to the result of the scale (applied
39 to some extent), according to the point of view of the members of the study sample,
40 and in general the study found that the level of cost management applied in
41 construction projects in the city of Tripoli is limited.
42
43
4- The results of the multiple regression analysis showed that the variables (the field
44 of estimating quality costs in the project, the field of estimating the administrative
45 expenses of the project, and the field of estimating the risks in the project)
46 explained about 91% of the variation in the application of the cost estimation axis.
47 5- The results of the simple regression analysis showed that the variable (cash flows in
48 the project) explained about 53% of the variance in the application of the budgeting
49
axis.
50
51 6- The results of the multiple regression analysis showed that the variables (the field
52 of use of follow-up tools, the field of comparison and analysis at the level of
53 activities and work packages, and the field of comparison and analysis at the level
54 of control accounts) explained about 93% of the variance in the application of the
55 cost control axis.
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4
7 Recommendations
5 Based on the findings of the study, the researcher recommends addressing the noticeable
6
7
deficiencies in the application of cost management processes in construction projects in the city
8 of Tripoli as follows:
9
10 1- Raising the efficiency of engineering cadres in the implementing agencies, through
11 continuous training and intensifying specialized training courses and programs in
12 the field of project management and cost management processes in construction
13 projects.
14 2- Emphasizing the need to establish a detailed work breakdown structure that
15
includes all project implementation activities, through which accurate methods can
16
17 be used to estimate direct and indirect costs, as well as using its components as
18 control accounts to control and control project costs.
19 3- The implementing entities shall define the roles and responsibilities assigned to the
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20 project team, and clarify the responsibility for controlling the costs of each
21 component in the project work breakdown structure.
22 4- The need to provide all documents, templates and information, related to cost
23
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estimation and budgeting.

24
25 5- Emphasizing the need to use accurate methods and tools in estimating the cost of
26 project implementation activities.
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27 6- Risks must be identified and evaluated during the project planning stage, and the
28 costs of facing them and the costs of quality requirements must be included during
29 the estimation process, in order to control deviations in the cost of implementing
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30 the project, and to ensure the achievement of the required level of quality.
31
7- Determining the budget necessary for the implementation of the project, preparing
32
the cash flow chart according to the schedule and determining the negative cash
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33
34 flows according to the dates of the extracts agreed upon in the project
35 implementation contract, with the need to find the necessary sources of financing to
36
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cover these flows, in order to avoid the budget deficit resulting from the delay in
37 paying the financial dues by the owner.
38
8- Using the earned value management tool to monitor and control the costs (labor,
39
40 equipment, construction materials) at the level of activities and work packages in
41 the project, in order to identify deviations in the cost of implementing the project,
42 take the necessary corrective actions, and achieve better results for the cost control
43 process.
44
45
46
47
48
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51
52
53
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References
5
6
7
8 [1] H. Kerzner, PROJECT MANAGEMENT: A Systems Approach to plannig, scheduling, and
9 controlling, new jersey: John Wiley & Sons, Inc., 2017.
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[2] J. M. Russ and Z. M. Dragan, Project Management Tool Box, Second ed., Hoboken, New Jersey:
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13 John Wiley & Sons,Inc, 2016.
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15 [3] H. Faiad, (Study of the reasons for the increase in the cost of construction projects in the city of
16 Tripoli)., Tripoli: Libyan Academy for Graduate Studies, Unpublished Master Thesis, 2015.
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[4] H. Acefao, Study of the factors that lead to the increase in cost in the projects of the Railway Project
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20 Implementation and Management Agency, Tripoli: Libyan Academy for Graduate Studies,
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[5] I. Abdul-Rahman, A. Memon and A. Abd.Karim, "Significant Factors Causing Cost Overruns in
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Large Construction Projects in Malaysia," Jornal of Applied Sciences, vol. 13, no. 2, pp. 286-293,
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26 January 2013.
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28 [6] R. Alsadiq, Reasons for the deviation of the final cost from the planned cost in construction projects
29 in Tripoli, Tripoli: Libyan Academy for Graduate Studies, Unpublished Master Thesis, 2017.
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[7] S. Malkanthi, A. Premalal and R. Mudalige, "Impact of Control Techniques on Cost Overruns in
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Construction Projects," ENGINEER, vol. 04, pp. 53-60, 2017.
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35 [8] a. Aoun, Scientific research, its methodology and stages of preparation, Tripoli: Darassalam, 2021.
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37 [9] D. Ashibani, Studying the reasons for cost variation in transportation projects at the General
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Electricity Company, Tripoli: Libyan Academy for Graduate Studies, Unpublished Master Thesis,
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40 2017.
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42 [10] J. Chimdi, S. Girma, A. Mosisa and D. Mitiku, "Assessment of Factors Affecting Accuracy of Cost
43 Estimation in Public Construction Projects in Western Oromia Region,Ethiopia," Journal of Civil
44 Engineering, Science and Technology, vol. 11, no. 2, 2 September 2020.
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47 [11] E. Khalil, (Study of the reasons for increasing the cost of infrastructure projects in the city of Al-
48 Khoms)., tripoli: Libyan Academy for Graduate Studies, Unpublished Master Thesis, 2015.
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50 [12] A. S. Aldalaeen, "Evaluation of the Variables Affecting on the Cost Management and Its Correlation
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to the Implementation of Construction Projects," European Journal of Business and Management,
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53 vol. 11, 2019.
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55 [13] Y. M. Aboelmagd, "Assessments of Barriers to Implmenting Cost Control and Optimal Cost
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3 Reduction Techniques in Construction Projects: A Case Study of Egypt," Journal of Engineering
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5 Sciences, vol. 49, pp. 509-529, 8 June 2021.
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7 [14] F. A. Albtoush, S. I. Doh, A. R. Bin Abdul Rahman and J. A. Albtoush, "FACTORS EFFECTING
8 THE COST MANAGEMENT IN CONSTRUCTION PROJECTS," International Journal of Civil
9 Engineering and Technology, vol. 11, no. 1, pp. 105-111, 2020.
10
11
12 [15] A. M. Kamaruddeen, C. F. Sung and W. Wahi, "A Study on Factors Causing Cost Overrun of
13 Construction Projects in Sarawak, Malaysia," Civil Engineering and Architecture, vol. 8, 13 May
14 2020.
15
16 [16] Y. Alazabi and A. Almansouri, Guidance steps in writing scientific theses (Master’s and PhD), ‫األولى‬
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ed., Benghazi: Dar alkotob alwataniya, 2017.
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Fo
20 [17] A. A. Sadi, A. B. Abdulaziz, S. Atiyah and M. Al-Shahri, "The management of construction
21 company overhead costs," International Journal of Project Management, vol. 19, pp. 295-303, 10
22 January 2001.
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24
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[18] M. Mansour, Using Earned Value Management to Manage Engineering Projects “An Applied Study
26 of Some Central Region Projects”, misrata: Libyan Academy for Graduate Studies, Unpublished
ee

27 Master Thesis, 2018.

28
29 [19] J. Valle and A. C. Soares, The Use of Earned Value Analysis in the Cost Management of
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30
Construction Projects in Brazil, Federal University, Brazil, 2015.
31
32
ev

33 [20] K. Harold, PROJECT MANAGEMENT: A Systems Approach to plannig, scheduling, and

34 controlling, new jersey: John Wiley & Sons, Inc., 2017.
35
36
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37
38
39
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42
43
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47
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49
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51
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Construction Cost Variance in Construction Projects Due to Contractor
5
6 “Applied Study Construction Projects in Tripoli City”
7
8 By: KHALED SALEH MUKHTAR ALAMMARI
9
10 Supervisor: ZAIDAN ALI HATUSH, Ph.D.
11
12
13 1 Abstract
14 The study aimed to assess the extent to which the implementing authorities of construction
15
16
projects in the city of Tripoli apply cost management processes, represented in the axis of cost
17 estimation, the axis of determining the budget, and the axis of cost control, by following the
18 descriptive approach and the analytical approach, where the study community consisted of
19 project managers and engineers working in the implementing agencies, and the sample was taken
Fo
20 in a simple random way, and after distributing (60) questionnaires to the study sample, (45) valid
21 forms for statistical analysis were retrieved. To analyze the data collected from the sample of the
22
study, and to achieve the objectives of the program, the computer was used and the program of
23
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24 statistical packages for the social sciences (SPSS) was used, where percentages, arithmetic
25 averages, and standard deviations were used, and multiple regression analysis was used to
26 determine the total partial contribution of the study fields to explain the variation in the study
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27 axes (cost estimation, budget determination, Cost control) This study concluded a set of results,
28 the most important of which are the following:
29
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30 1- The level of application of the implementing agencies for cost management operations in
31 construction projects within the city of Tripoli is limited, according to the result of the scale
32
(applied to some extent).
ev

33
34
2- According to the results of the multiple regression analysis, the variables (the field of
35
36 estimating quality costs in the project, the field of estimating the administrative expenses of the
iew

37 project, the field of estimating the costs of risks in the project) have explained about 91% of the
38 variation in the cost estimate axis.
39
40 3- According to simple regression analysis, the variable (cash flows in the project) has explained
41 about 53% of the variance in the axis of determining the budget.
42
43 4- According to the results of multiple regression analysis, the variables (the field of use of
44 follow-up tools, the field of comparison and analysis at the level of activities and work packages,
45 and the field of comparison and analysis at the level of control accounts) have explained about
46
93% of the variance in the axis of cost control.
47
48
Keywords: Cost Management, Estimate Costs, Determine Budget, Control Costs
49
50
51
52 2 Introduction
53 The construction sector is one of the most important sectors in terms of activity rates and
54
55
its overlap with the rest of the other economic sectors, as it provides job opportunities to absorb
56 labor, especially local, and during the past years, the Libyan state has monitored planning efforts
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3 for development in the infrastructure, productivity, and service sectors, and in order to achieve
4
the quantitative goals of these plans, it required contracting for the implementation of large
5
6 numbers of construction projects in which national companies had a share of participation, and
7 by increasing the number and sizes of these projects, the weakness of the implementing agencies
8 appeared in administrative terms. The lack of qualified technical and specialized personnel, as
9 well as the lack of proper planning, implementation and follow-up processes, has negatively
10 affected the implementation of these projects, leading to their faltering and deviation from the
11 budgets allocated for their implementation and their delay in time plans.
12
13 Based on the close relationship between project management's planning, organization,
14
15
direction and control of enterprise resources and the achievement of the desired project
16 objectives, successful project management is based on achieving project objectives within the
17 approved cost limits, the required level of performance, using allocated resources efficiently and
18 effectively, and achieving project stakeholder satisfaction. [1]
19
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20 In fact, the deviation of the actual cost from the planned is common in construction
21 projects, and occurs cumulatively during the implementation of the project, so it is necessary to
22 apply cost management, because it includes managing the processes required to ensure that
23
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project work is completed within the approved budget, evaluating any changes that occur to it, as
24
25
a result of changes in the project scope, and setting a new budget baseline when necessary [2].
26
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27
There are studies that dealt with the causes and factors causing cost deviation in
28 construction projects, where a study [3] showed that one of the reasons for exceeding the cost is
29 that the contractor provided prices that are not studied accurately at the beginning of the contract,
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30 and a study [4] showed that erroneous estimates of the estimated cost are one of the reasons for
31 exceeding the cost, as well as a study [5] showed that the fluctuation in the prices of raw
32 materials and building materials is one of the reasons for exceeding the cost. Also, the delay of
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33
the owner in disbursing the extracts to the contractor is one of the reasons for the increase in the
34
35 cost in construction projects according to a study [6], and the lack of follow-up and cost control
36 is the most common factor associated with increasing the profit margin in construction projects
iew

37 according to a study [7]

38
39 From here, the researcher believes that the application of cost management processes
40 from: developing a plan, estimating costs, determining the budget, and controlling the cost in the
41 planning and implementation stages of construction projects Hence, it is clear that there is a lack
42 of previous local studies, as they did not address the extent to which the implementing agencies
43
apply cost management processes in construction projects, and since one of the objectives of
44
45 scientific research is to start from where others ended, in order to clarify the ambiguity, detail the
46 total, collect the dispersed, or complete the missing [8], so it was necessary to know in some
47 detail the extent to which the implementing agencies apply cost management processes in
48 planning and implementing construction projects, and compare it with what is stipulated in the
49 guide Knowledge of project management in Chapter VII on cost management, by following the
50 descriptive approach and the analytical approach, and using the questionnaire tool to inquire
51
52
about the reality of cost management, in order to identify deficiencies and defects in its
53 application, which represents the research problem.
54
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4
3 Literature review
5 Previous studies related to the variables of the current study such as [4], [5] as well as [6],
6 [9], [10] showed a number of reasons and factors that led to the deviation of the actual cost from
7 the planned cost in construction projects, and therefore the research problem is that there is an
8 urgent need to identify shortcomings and shortcomings in the process of estimating the financial
9
10
resources necessary to implement project activities and the process of controlling costs,
11 including the comparison it contains. Analyze the project budget spent with the value of the work
12 performed. study [11] was the most prominent of its results Failure to put in place the necessary
13 precautions to confront emergencies and potential risks, delays in paying compensation for
14 citizens’ real estate ownership, poor planning in schedules of quantities and specifications, and
15 failure to employ engineering management tools and mechanisms; To choose the appropriate
16 contractor and project manager, as well as new regulations, laws, and administrative routine. One
17
18
of the reasons for increasing costs, and [12] The most prominent results were that the variable
19 cost of transporting construction materials and equipment had the highest arithmetic mean,
Fo
20 followed by the variable of fluctuation in prices of construction materials and equipment, and
21 followed by the variable availability of a financial flow plan at the implementing agency, in the
22 financial aspects group. The results of a study [13] also showed the presence of (20) factors
23
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affecting the cost control process collected from personal interviews with experts, and they were
24
arranged according to the relative importance index, including: the factor of change orders, the
25
26 factor of changes in designs and design errors, the factor of the economic situation of the
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27 country, the factor of high prices of construction materials, the factor of project delay and the
28 factor of inaccurate cost estimates. The results of applying the activity-based cost (ABC) method
29 in the case study showed a clear effect, and there is a discrepancy in estimating the cost of
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30 overhead activities compared to traditional methods of cost estimation, which leads to obtaining
31 a better price for tenders, The study recommended the adoption of the activity-based cost (ABC)
32
method to obtain more accurate estimates of the cost of activities in the project.
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33
34
The results of a study [14] also showed that factors affecting cost management in
35
36 construction projects include changes in designs, weak management on site, delayed payment of
iew

37 dues to the implementing agency by the owner, and fluctuation in the prices of construction
38 materials. As for the year 2020, the results of a study [15] showed that the factor of shortage of
39 construction materials and their availability, and the factor of shortage of construction equipment
40 and its spare parts from the group of external factors had the highest value for the relative
41 importance index in the general ranking, followed by the factor of accelerating the pace of work
42
43
required of the owner, followed by the factor of changes that The scope of work, specifications,
44 or construction materials are changed by the owner from the group of factors related to the
45 owner, followed by the factor of errors during implementation and the factor of lack of skilled
46 labor from the group of factors related to the contractor. The results of the study also showed that
47 fluctuation in raw material prices, weak project management, and weak cost control and control
48 are factors causing increased costs in construction projects in Sarawak, Malaysia.
49
50 While the results of a study [10] in 2020 showed that the factor of the level of experience
51
of the cost estimation engineer had the highest value for the relative importance index in the list
52
53 of factors affecting the cost estimation process in the group of factors related to evaluating the
54 cost estimation process, followed by the factor of the possibility of obtaining a database for
55 similar projects, followed by The factor of accuracy of the information collected from the site
56 before carrying out the estimation process, followed by the factor of the procedure followed in
57
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3 updating information in the cost estimation process, followed by the factor of accuracy of the
4
assumptions used in the cost estimation process.
5
6
The factor of prices of construction materials and their availability received the highest
7
8 value of the relative importance index in the list of factors affecting the cost estimation process
9 in the group of market factors and external factors, followed by the factor of fluctuation of the
10 exchange rate of the local currency, followed by the factor of the availability and productivity of
11 labor and construction equipment, followed by the factor of the economic situation of the
12 country.
13
14
15
16
4 Methodology
17 In order to achieve the objectives of the study, the descriptive approach and the analytical
18 approach were followed to describe the phenomenon that is the subject of the study, analyze its
19 data, and determine the relationship between its variables and the opinions that are presented
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20 about it In order to reach the results of the study. [8]Defines the descriptive method as the
21
22
method in which the researcher describes a particular phenomenon, and then analyzes its
23 characteristics and the factors affecting it. Likewise, [16] defined the descriptive method as the
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24 method used to study and clarify the characteristics of the phenomenon, or an interpretation of an
25 existing situation. In fact and determine their relationship within the framework of the variables
26 surrounding them.
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27
28 4.1 Personal interviews:
29
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30 The practical study relied on conducting personal interviews with some project
31 managers and engineers working for agencies implementing construction projects to
32 find out some data related to the study.
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33
34 4.2 Questionnaire design
35 It was designed to evaluate the extent to which implementing agencies apply cost
36
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management processes in planning and implementing construction projects, based on three main
37
38 axes, as stipulated in the Project Management Knowledge Guide (PMBOK), which are as
39 follows:
40
41 1- The first axis: estimating the costs of the project, which aims to estimate the
42 financial resources necessary to complete the project work, and was measured in
43 statements from (1 to 22) distributed over six sub-areas: (the field of developing a
44 work breakdown structure, the field of resource planning in the project, the field of
45 estimating the direct costs of resources, the field of estimating the administrative
46
47
expenses of the project, the field of estimating the costs of risks in the project, and
48 the field of estimating the quality costs of the project).
49 2- The second axis: determining the budget of the project, which aims to calculate the
50 total estimated costs for each activity separately, or at the level of work packages,
51 in order to establish an approved reference line for cost in addition to administrative
52 costs, and was measured in statements from (23 to 51) distributed over three sub-
53
areas: (the field of aggregation of costs at the level of work packages and control
54
55
accounts, the field of aggregation of costs at the project level, and the field of cash
56 flows).
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3 3- The third axis: controlling costs in the project, which aims to monitor the status of
4
the project, in order to challenge the modernization of project costs, manage
5
6 changes in the cost reference line, and take the necessary preventive and corrective
7 measures to restore the workflow according to the planned schedule and budget,
8 and was measured in phrases from (31 to 21.3) distributed over six sub-areas: (the
9 field of collecting data on the progress of work in the project, the field of using
10 follow-up tools in controlling costs, the field of comparison and analysis at the
11 level of activities and work packages, the field of comparison and analysis on The
12
13
level of control accounts, the field of comparison and analysis at the project level,
14 the field of updating and documentation)
15
16
17 5 Results and Discussion
18
19 5.1 Descriptive analysis of the cost estimation axis:
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20
21 The results of the statistical analysis showed that the total value of the weighted avarage
22 mean for the items in the cost estimation axis reached 1.68 degrees, with a standard deviation of
23
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0.230, which indicates a fairly applied level according to the triple Likert scale, according to the
24 point of view of the study sample members. In addition, the coefficient of variation does not
25 constitute Except for about 13.60%, which indicates that there is 86.4% homogeneity between
26
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the answers of the study sample members regarding the degree of application of the axis. It is
27
28 also noted from Figure (1) that the highest arithmetic average for the domains that make up this
29 axis from the study sample members’ point of view is 2.09. The field of estimating the direct
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30 costs of resources in the project, with a standard deviation of 0.390 and a coefficient of variation
31 of 18.8%, and a somewhat applied level, followed in the ranking by the field of establishing the
32 work breakdown structure with an arithmetic mean of 1.88 and a standard deviation of 0.22, and
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33 the field of resource planning in the project came in third place with an arithmetic mean of 1.84
34
35
and a standard deviation of 0.21.
36
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The field of estimating risk costs in the project came in fourth place, with a mean of 1.7
37
38 and a standard deviation of 0.31, followed in fifth place by the field of estimating quality costs in
39 the project with a mean of 1.33, a standard deviation of 0.369, and a level not applicable. In last
40 place came the field of estimating project administrative expenses with a mean of 1.28. Standard
41 deviation of 0.33, at a level not applied according to the application scale.
42
43 In order to determine the extent of the partial and total contribution of variables (project
44 quality cost estimation field, project administrative expense estimation field, project risk cost
45 estimation field) in explaining the variance in the dependent variable (project cost estimate), a
46
47
multiple linear regression analysis test was performed, and the conditions of linearity, normal
48 distribution of random errors, their independence, homogeneity of variance, and the absence of
49 influential anomalous values were verified to test the null hypothesis (Ho): All partial linear
50 regression coefficients are equal to zero, versus the alternative hypothesis (H1): there is at least
51 one partial linear regression coefficient that is not equal to zero, and Table (1) shows the test
52 results
53
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4
5 the field of estimating the quality costs of
6 the project
7
the field of estimating the costs of risks
8
in the project
9
10 the field of estimating the administrative
11 expenses of the project
12 the field of estimating the direct costs of
13 resources
14 the field of resource planning in the
15 project
16
17 the field of developing a work
18 breakdown structure
19
0 0.5 1 1.5 2 2.5
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20
21
22 Figure (1) Averages of the areas of the cost estimation axis according to the opinions of the study sample members
23
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24
25
26 Table (1) Summary of multiple regression analysis to explain the variance in the cost estimate variable for the
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27 project
28
29 R² R² R
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30 sig sig Adjusted The Multiple Explanatory Dependent

31 V.I.F t β F
32 (t) (f) coefficient of coefficient of correlation variables variable
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33 determination determination coefficient

34
35 Estimating the
2.40 0.00 6.0 0.308
36
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costs of risks
37
38 Estimating
Estimating
39 2.92 0.00 5.39 0.280 administrative
40 0.001 152.42 0.912 0.918 0.958 the cost of
41 expenses
the project
42 Estimating the
43
44 2.46 0.003 3.20 0.141 costs of
45 quality
46
47
48
49 It is clear from the results of Table (1) that the regression model is significant through the
50 value of (P) of (152.42) in terms of (0.001) smaller than the level of significance (0.05), and the
51 results explain that the interpreted variables explain 91.2% of the variance in the cost estimate
52 variable for the project, given the value of the adjusted coefficient of determination, and the beta
53
value that shows the relationship between the cost estimate of the project and the risk cost
54
55 estimate variable with a value of (0.308) is significant, as this can be deduced from the value of
56 (T) and the associated significance The beta value of the administrative expense estimation
57
58 6
59
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1
2
3 variable and the quality cost estimate variable (0.280) and (0.141) respectively were significant.
4
The table also shows the results of the multilinear test where the result revealed that the largest
5
6 value of the variance amplification factor in the model (2.92) is less than (10), which indicates
7 that there is no problem of linear multiplicity between the variables of the model. Based on the
8 above analysis, we reject the null hypothesis and accept the alternative hypothesis, which states
9 that there is at least one partial linear regression coefficient that is not equal to zero.
10
11 5.2 Descriptive analysis of the budget axis:
12
13 The results of the statistical analysis showed that the total value of the weighted avarage
14 mean of the paragraphs of the budget axis according to the point of view of the members of the
15 study sample reached 2.09 degrees with a standard deviation of 0.175, which indicates a level
16
applied to some extent according to the triple Likert scale, in addition to that the coefficient of
17
18 variation is only about 8.37%, which indicates that there is a homogeneity of 91.63% between
19 the answers of the study sample members on the degree of application of the axis, as can be seen
Fo
20 from Figure (2) that the highest An avarage mean for the areas that make up this axis from the
21 point of view of the study sample members is 2.78 for the field of cost aggregation at the level of
22 work packages and control accounts with a standard deviation of 0.277 and a coefficient of
23
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variation of 9.92% and an applied level, followed by the cost aggregation field at the project
24
25
level with an arithmetic mean of 2.02 and a standard deviation of 0.260, followed by the project
26 cash flow field in third place with an arithmetic mean of 1.47 and a standard deviation of 0.300.
ee

27
28
29
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30
31
32
ev

33
34 Project cash flow area
35
36
iew

37
38 Project-level cost aggregation area
39
40
41
42 Scope of aggregation of costs at the level of
43 work packages and control accounts
44
45
46 0 0.5 1 1.5 2 2.5 3
47
48
49 Figure( 2) averages of the areas of the budget axis according to the opinions of the study sample members
50
51 To determine the contribution of the variable (project cash flows) to the interpretation of
52 the variance in the dependent variable (budget determination), a simple linear regression analysis
53 test was performed, and the conditions of linearity, the normal distribution of random errors,
54 were verified to test the null hypothesis (Ho): that the linear regression coefficient (β flows) is
55
56
57
58 7
59
60
 Project Management Journal Page 64 of 70

1
2
3 equal to zero, against the alternative hypothesis (H1): which is the linear regression coefficient is
4
not equal to zero, and Table (2) shows the test results.
5
6
7
8 Table (2) Summary of simple linear regression analysis to explain variance in the budgeting variable
9 R² R² R
10
11 sig sig Adjusted The Multiple Explanatory Dependent
t β F
12 (t) (f) coefficient of coefficient of correlation variables variable
13
14 determination determination coefficient
15 the field of
16 Determine
project cash
17 0.001 7.141 0.430 0.001 50.99 0.532 0.543 0.737 the project
18 flow
budget
19
Fo
20
21
22
23 It is clear from the results in Table (2) that the regression model is significant, through the
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24 value of (P) of (50.99) in terms of (0.001) is less than the level of significance (0.05), and the
25 results explain that the cash flow variable explains 53.2% of the variance in the budgeting
26 variable for the project, given the value of the adjusted determination coefficient, and the beta
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27
value, which shows the relationship between the two variables with a value of (0.430), is
28
29 significant, as this can be deduced from the value of (T) and the associated significance, and
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30 based on We reject the null hypothesis, and accept the alternative hypothesis, which states that
31 the linear regression coefficient of the cash flow variable is not equal to zero.
32
5.3 Descriptive analysis of the cost control axis:
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33
34
35 The results of the study showed that the members of the study sample believe that the total
36
iew

value of the weighted avarage mean of the paragraphs of the cost control axis is 1.71 degrees and
37 a standard deviation of 0.254, which indicates a level applied to some extent according to the
38 triple Likert scale, and that the coefficient of variation is only 14.85%, which indicates that there
39
is a homogeneity of 85.15% between the answers of the study sample members on the degree of
40
41
application of the axis, as can be seen from Figure (3) that the highest arithmetic average for the
42 areas that make up this axis From the point of view of the study sample members is 2.07 for the
43 field of collecting data on the progress of work in the project with a standard deviation of 0.250
44 and a coefficient of variation of 12% and a level applied to some extent, followed in the ranking
45 by the field of comparison and analysis at the project level with an arithmetic mean of 2.0 and a
46 standard deviation of 0.150, and came in the penultimate and last place the field of comparison
47
and analysis at the level of activities and work packages and the field of using follow-up tools in
48
49 controlling costs with an arithmetic mean (1.62 and a standard deviation of 0.730, 1.24 and a
50 standard deviation of 0.30) respectively.
51
52
53
54
55
56
57
58 8
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1
2
3
4
5
6 Project-level comparison and analysis
7
Field of modernization and
8
documentation
9
10
11 The use of follow-up tools in cost control
12
13 Work progress data collection
14 The field of comparison and analysis at
15 the level of control accounts
16
17 The field of comparison and analysis at
18 the level of activities and work packages
19
0.00 0.50 1.00 1.50 2.00 2.50
Fo
20
21
22 Figure (3) averages of the areas of cost control axis according to the opinions of the study sample members
23
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24 To determine the extent to which the partial and total contribution of variables (the domain
25 of using follow-up tools in cost control, the field of comparison and analysis at the level of
26
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27
activities and work packages, and the field of comparison and analysis at the level of control
28 accounts) in the interpretation of variance in the dependent variable (cost control of the project),
29 a multiple linear regression analysis test was performed, and the conditions of linearity, normal
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30 distribution of random errors, their independence, homogeneity of variance, and the absence of
31 influential outliers were verified to test the null hypothesis (Ho): All partial linear regression
32 coefficients are equal to zero, versus the alternative hypothesis (H 1): there is at least one partial
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33
linear regression coefficient that is not equal to zero, and the test results are shown in Table (3).
34
35 Table (3) Summary of multiple regression analysis to explain the variance in the cost control variable of the project
36
iew

R² R² R
37
38 sig sig Adjusted The Multiple Explanatory Dependent
V.I.F t β F
39 (t) (f) coefficient of coefficient of correlation variables variable
40
41 determination determination coefficient
42 Use follow-up
43 1.04 0.00 7.54 0.248
tools
44
45 Comparison and
46
analysis across
47 1.71 0.00 11.00 0.188 Cost
48 activities and
49 0.001 224.39 0.938 0.943 0.971 control in
work packages
50 the project
51 Comparison and
52 analysis at the
53 1.67 0.00 9.58 0.163
54 level of control
55 accounts
56
57
58 9
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3 It is clear from the results of Table (3) that the regression model is significant through the
4
value of (P) of (224.39) in terms of (0.001) is smaller than the level of significance (0.05), and
5
6 the results explain that the interpreted variables explain 93.8% of the variance in the cost control
7 variable for the project, given the value of the adjusted coefficient, and the beta value that
8 illustrates the relationship between the cost control of the project and the variable of using
9 follow-up tools with a value of (0.248) is significant, as this can be deduced from the value of
10 (T) and the associated significance Also, the beta value of the comparison and analysis variable
11 at the level of activities and work packages and the comparison and analysis variable at the level
12
13
of control accounts (0.188) and (0.163) respectively was significant. The table also shows the
14 results of the multilinear test where the result revealed that the largest value of the variance
15 amplification factor in the model (1.71) is less than (10), which indicates that there is no problem
16 of linear multiplicity between the variables of the model. Based on the above analysis, we reject
17 the null hypothesis and accept the alternative hypothesis, which states that there is at least one
18 partial linear regression coefficient that is not equal to zero.
19
Fo
20 5.4 Discussion of the results of the study
21
22 1- Failure to use the bottom-up estimation method to estimate the cost of project
23 implementation activities, as the arithmetic average value of this paragraph was
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24 (1.27), and this comes in line with a study [13], which recommended adopting the
25 activity-based cost method to obtain more accurate estimates of the cost of
26 activities in the project.
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27
2- Deficiencies in estimating the costs of administrative expenses of the project, as the
28
29 value of the arithmetic average for this area was (1.28), and this comes in line with
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30 the study [13], and explains what was mentioned in the study [6], where the first
31 study concluded that there is a discrepancy in estimating the cost of overhead
32 activities as a result of applying the activity-based cost method compared to other
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33 traditional methods, while the second study showed in its results an increase in
34 indirect costs from their estimated value, as well as Consistent with a study [17],
35
36
which recommended that planning should be made to maintain optimal levels of
iew

37 corporate overhead costs.

38 3- Not including the cost reserves necessary to face the risks at the level of activities,
39 or at the level of work packages in the project, due to the failure to study the
40 expected risks, and develop response plans for them, and this comes in line with the
41 study [4], and the study [11], which recommended the need to study the risks that
42
may occur in the project, and to develop the necessary precautions to confront
43
44 them, as well as consistent with [1], which stated that one of the reasons for the
45 failure of projects related to the project planning and implementation process is the
46 poor application of the risk assessment process, as well as in line with [2], which
47 stated that the lack of an emergency reserve for risk management is one of the
48 reasons for the deviation in the cost of construction project
49 4- Failure to prepare financial flows statements for the project according to schedule,
50
in order to determine the incoming and outgoing financial flows according to the
51
52 dates of the financial payments agreed upon in the project implementation contract,
53 and to identify the sources of financing necessary to cover the negative flows, and
54 this comes in line with the study [4], and the study [18], where both of them
55 concluded that the contractor neglected the financial planning of the project, and
56
57
58 10
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Page 67 of 70 Project Management Journal

1
2
3 did not develop a plan for financial flows, which may result in financial bottlenecks
4
during the project implementation phase.
5
6 5- Failure to estimate the administrative reserves allocated from the project budget for
7 sudden works within the scope of project implementation work
8 6- Failure to create a detailed work breakdown structure for the project with, defining
9 the roles and responsibilities of the project team members, as the value of the
10 arithmetic average of the paragraphs of the scope of developing the work
11 breakdown structure was (1.88), and this comes in line with the study [13], and the
12
13
study [19], which recommended the importance of establishing a detailed work
14 breakdown structure that includes all project activities, and identifying the
15 responsible project team member at the level of work packages, in order to obtain
16 better results for the process of controlling and controlling the budget Project.
17 7- Deficiencies in the process of monitoring and controlling the cost at the level of
18 activities and work packages and the level of control calculations for the cost
19
elements (labor, equipment, construction materials) in the project, by conducting an
Fo
20
21 analysis of the variance between the actual costs of the cost elements with the
22 planned costs, and identifying deviations based on cost performance indicators and
23 schedule; Control accounts (1.62, 1.65) respectively, and this comes in line with a
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24 study [7], which recommended the need for the implementing authorities to prepare
25 weekly cost reports for labor and construction equipment used in the projec
26
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27
28
29
6 Conclusions
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30 1- The study found that the level of cost estimation applied in construction projects in
31 the city of Tripoli is limited, according to the result of the scale (applied to some
32 extent), according to the point of view of the members of the study sample.
ev

33 2- The study found that the level of the budget process applied in the construction
34
35
projects in the city of Tripoli is limited, according to the result of the scale (applied
36 to some extent), according to the point of view of the members of the study sample.
iew

37 3- The study found that the level of cost control process applied in construction
38 projects in the city of Tripoli is limited, according to the result of the scale (applied
39 to some extent), according to the point of view of the members of the study sample,
40 and in general the study found that the level of cost management applied in
41 construction projects in the city of Tripoli is limited.
42
43
4- The results of the multiple regression analysis showed that the variables (the field
44 of estimating quality costs in the project, the field of estimating the administrative
45 expenses of the project, and the field of estimating the risks in the project)
46 explained about 91% of the variation in the application of the cost estimation axis.
47 5- The results of the simple regression analysis showed that the variable (cash flows in
48 the project) explained about 53% of the variance in the application of the budgeting
49
axis.
50
51 6- The results of the multiple regression analysis showed that the variables (the field
52 of use of follow-up tools, the field of comparison and analysis at the level of
53 activities and work packages, and the field of comparison and analysis at the level
54 of control accounts) explained about 93% of the variance in the application of the
55 cost control axis.
56
57
58 11
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 Project Management Journal Page 68 of 70

1
2
3
4
7 Recommendations
5 Based on the findings of the study, the researcher recommends addressing the noticeable
6
7
deficiencies in the application of cost management processes in construction projects in the city
8 of Tripoli as follows:
9
10 1- Raising the efficiency of engineering cadres in the implementing agencies, through
11 continuous training and intensifying specialized training courses and programs in
12 the field of project management and cost management processes in construction
13 projects.
14 2- Emphasizing the need to establish a detailed work breakdown structure that
15
includes all project implementation activities, through which accurate methods can
16
17 be used to estimate direct and indirect costs, as well as using its components as
18 control accounts to control and control project costs.
19 3- The implementing entities shall define the roles and responsibilities assigned to the
Fo
20 project team, and clarify the responsibility for controlling the costs of each
21 component in the project work breakdown structure.
22 4- The need to provide all documents, templates and information, related to cost
23
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estimation and budgeting.

24
25 5- Emphasizing the need to use accurate methods and tools in estimating the cost of
26 project implementation activities.
ee

27 6- Risks must be identified and evaluated during the project planning stage, and the
28 costs of facing them and the costs of quality requirements must be included during
29 the estimation process, in order to control deviations in the cost of implementing
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30 the project, and to ensure the achievement of the required level of quality.
31
7- Determining the budget necessary for the implementation of the project, preparing
32
the cash flow chart according to the schedule and determining the negative cash
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33
34 flows according to the dates of the extracts agreed upon in the project
35 implementation contract, with the need to find the necessary sources of financing to
36
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cover these flows, in order to avoid the budget deficit resulting from the delay in
37 paying the financial dues by the owner.
38
8- Using the earned value management tool to monitor and control the costs (labor,
39
40 equipment, construction materials) at the level of activities and work packages in
41 the project, in order to identify deviations in the cost of implementing the project,
42 take the necessary corrective actions, and achieve better results for the cost control
43 process.
44
45
46
47
48
49
50
51
52
53
54
55
56
57
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4
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