Unintended negative effects of client project cost controls : a system dynamics approach

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Authors

Chitongo, Alfred Mutizwa
Pretorius, Leon

Journal Title

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Volume Title

Publisher

Southern African Institute for Industrial Engineering

Abstract

Project controls have been defined in the existing literature as managerial decisions and actions aimed at rectifying poor project performance. Understanding the potential unintended negative effects of such controls will be beneficial to project management practice and to the resulting project performance. Using the system dynamics approach, this article investigates some unintended negative effects of client project cost controls. Empirical data from a raw-water infrastructure project are used to calibrate the formulated system dynamics simulation model. Simulation results suggest that the client project cost controls (aimed at minimising project cost), unintentionally generate some counteractive effects (an increase in the project cost and the time schedule duration).
Projekkontroles is in die literatuur gedefinieer as bestuursbesluite en aksies wat daarop gemik is om swak projekprestasie reg te stel. Om die potensiële onbedoelde negatiewe gevolge van sulke kontroles te begryp, sal voordelig wees vir projekbestuurspraktyke en die gevolglike projekprestasie. Met behulp van ʼn stelseldinamika-benadering, ondersoek hierdie artikel 'n paar onbedoelde negatiewe gevolge van kliëntprojekkostekontroles. Empiriese data uit 'n rou-water-infrastruktuurprojek word gebruik om die geformuleerde stelseldinamika simulasiemodel te kalibreer. Simulasie resultate dui daarop dat die kliënt projek koste kontrole (gemik op die vermindering van projek koste), onbedoeld sommige teenproduktiewe effekte genereer ('n toename in die projek koste en die projek tydsduur).

Description

Presented at the 29th annual conference of the Southern African Institute for Industrial Engineering (SAIIE), held from 24-26 October 2018 in Stellenbosch, South Africa

Keywords

Project controls, Literature, Empirical data, Projekkontroles, Literatuur, Empiriese data

Sustainable Development Goals

Citation

Chitongo, A.M. & Pretorius, L. 2018, 'Unintended negative effects of client project cost controls : a system dynamics approach', South African Journal of Industrial Engineering, vol. 29, no. 3, pp. 121-131.