ISSN: 2734-9438
Website: www.jomc.vn
Design-to-cost in construction project cost management: A conceptual review and structural limitations
Abstract
Cost management has long occupied a central position in construction investment project management, where project success is commonly assessed through budget compliance. Within this context, Design-to-Cost has evolved beyond a cost control tool to become a cost-centred governance logic that shapes design decisions, organisational behaviour, and prevailing interpretations of project value. This paper adopts a conceptual and critical literature review to reframe this approach as a form of governance, elucidating the implicit assumptions that underpin it and the ways in which these assumptions are institutionalised into structural limitations in project practice. The paper also clarifies related constructs (target costing; designing to target cost) and conceptualises cost-based design steering as a mediating mechanism linking budget constraints to design decision-making. In doing so, the study reveals a core contradiction: effective cost management does not necessarily translate into effective value governance. The paper thus establishes a theoretical foundation for subsequent research on value-based design and delivery approaches in construction projects.
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