Enhancement of the Project Cost by Mapping the Influence of the Supply Chain Attributes

Abstract

Controlling construction project costs is a critical factor in achieving project success, particularly in complex construction environments. Previous studies have shown that weaknesses in supply chain management are among the primary causes of cost overruns. Accordingly, this study investigates the impact of supply chain attributes (SCA) on construction project costs by identifying key characteristics through a comprehensive review of prior literature and developing a framework to evaluate their influence on cost outcomes.

Data were collected from construction projects and analyzed using statistical techniques, including correlation analysis and Structural Equation Modeling (SEM). The results reveal a statistically significant negative correlation between project costs and SCA, indicating that improved supply chain performance contributes to cost reduction. The SEM results validate the proposed framework, with a chi-square value of χ² = 9.865 and a probability value of p = 0.275, which exceeds the acceptable threshold of 0.05 and confirms an adequate model fit.

Further findings demonstrate that supply chain functions, quality management, and human resource management (HRM) significantly enhance project cost efficiency. Among these factors, HRM plays a pivotal role in strengthening supply chain functions and improving overall performance, highlighting its strategic importance within construction organizations. By statistically modeling the relationships and pathways between SCA and project costs, this study provides a systematic approach to understanding how effective supply chain management can improve cost efficiency in construction projects