Abstract:
If not managed properly, the cost of South African municipal infrastructure
projects could represent a major financial burden on the country’s fiscus. Cost
management on these projects is, therefore, a significant parameter that needs
to be managed appropriately. Earned Value Management (EVM) is a control tool
that integrates a project budget and schedule in a single monitoring and control
mechanism that has the potential to improve overall project performance in
this sector. However, it is necessary to first investigate factors that would lead
to increased acceptance of EVM within the sector. To solicit the perceptions
regarding project cost management within the sector, a survey questionnaire
was developed and distributed to project managers working in the municipal
infrastructure sector in South Africa. Descriptive and inferential statistics were
used to analyse the data received. Indications are that project managers working in
the municipal infrastructure sector recognise the importance of managing project
costs. However, attention should be paid to a formal cost control system that
interfaces with the current reporting practices; is integrated into and accepted by
the whole project team; and is supported by national norms and sector (e.g. water
or energy) norms.
