Analysis of theoretical approaches to the management of the cost of investment projects

Authors

Keywords:

cost management, investment projects, cost engineering, investment and construction project, project life cycle, value, costs, risks, integrative approach

Abstract

The article is devoted to the analysis of the existing theoretical and methodological principles of managing the cost of investment projects in the conditions of transformation of the economic environment, increasing uncertainty and complication of investment and construction activities. The relevance of the study is due to the limitations of traditional cost and financial-oriented approaches to cost management, since in dynamic conditions they do not ensure the achievement of strategic value for investment in the long term. It is shown that the modern practice of managing investment projects requires a transition from fragmented cost control to systematic management of value creation throughout the project life cycle.

Based on the generalization of scientific approaches to managing the cost of investment projects, a comparative analysis of cost, value-oriented, process, system and risk-oriented approaches was carried out. It was established that each of them covers individual aspects of cost formation and control, but does not ensure the integrity of management decisions regarding the optimization of the relationship between costs, functionality and expected investment results. Particular attention is paid to cost engineering as the most progressive interdisciplinary approach that combines economic, engineering and management tools and is focused on functional cost optimization of investment decisions.

Cost engineering should be considered not as a separate tool, but as a methodological basis for reformatting the investment project management system. Its application at the early stages of the life cycle allows for the formation of optimal cost solutions, minimizing the risks of budget overruns and ensuring consistency between the investor's strategic goals, technical and technological parameters of the project and the costs of their implementation. The integration of cost engineering with value-based management, systems analysis, risk management and digital technologies, in particular information modeling and life cycle cost analysis, is proposed.

The results of the study form a theoretical basis for the development of a synergistic model of cost management of investment projects, focused on creating sustainable economic and consumer value.

References

Шкуратов О.І., Чудовська В.А. (2023). Інституціональні засади цифровізації будівельної галузі. Шляхи підвищення ефективності будівництва в умовах формування ринкових відносин, № 2(52). С. 3–13. DOI: https://doi.org/10.32347/2707-501x.2023.52(2).3-13.

Микитюк Ю. Оцінювання та управління вартістю інвестиційно будівельних проєктів. Вісник економіки, 2024, № 2, с. 226–237. DOI: https://doi.org/10.35774/visnyk2024.02.226

Chen, W. T. A Decade of Value Engineering in Construction Projects. Advances in Civil Engineering, 2022. https://doi.org/10.1155/2022/8731094

Latif, S. D., Usman, F., Pirot, B. M. Implementation of Value Engineering in Optimizing Project Cost for Sustainable Energy Infrastructure Asset Development. International Journal of Sustainable Development and Planning, 2020, Vol. 15(7), pp. 1045–1057. https://doi.org/10.18280/ijsdp.150709

Damavandi, M., Tavakoli, M., Jolai, F. Project cost forecasting based on earned value management and Markov chain. Annals of Operations Research, Springer, 2024. https://doi.org/10.1007/s10479-024-05889-7

Blessing, A. C., Ogunjiofor, E. I. Cost Estimation and Analysis for Better Project Budgeting. Journal of Engineering Research and Reports, 2025, Vol. 27(7), pp. 418–426. https://doi.org/10.9734/jerr/2025/v27i71583

Гойко А. Ф. Методи оцінки ефективності інвестицій та пріоритетні напрями їх реалізації. Київ: ВІРА Р, 1999.

Польова Н., Журба О., Чен Н. Застосування інструментів аналізу ризиків в управлінні вартістю інвестиційно будівельного проєкту. Розвиток міста, 2025, № 1(05). DOI: https://doi.org/10.32782/city-development.2025.1-13

Latif, S. D., Usman, F., Pirot, B. M. Іmplementation of Value Engineering in Optimizing Project Cost for Sustainable Energy Infrastructure Asset Development. International Journal of Sustainable Development and Planning, 2020, Vol. 15(7), pp. 1045–1057. https://doi.org/10.18280/ijsdp.150709

Imron, A., Husin, A. E. Value engineering and lifecycle cost analysis to improve cost performance in green hospital project. Archives of Civil Engineering, 2021, Vol. 67(4), pp. 497–510. https://doi.org/10.24425/ace.2021.138514

Mohamed, A. G., Alqahtani, F. K., Ismail, E. R., Nabawy, M. Synergizing BIM and Value Engineering in the Construction of Residential Projects: A Novel Integration Framework. Buildings, 2024, Vol. 14(8), Article 2515. DOI: https://doi.org/10.3390/buildings14082515

Шевчук К. І. Інжиніринг як інструментарій підвищення ефективності будівництва. Шляхи підвищення ефективності будівництва в умовах формування ринкових відносин, 2020, № 44, с. 56–66. https://doi.org/10.32347/2707-501x.2020.44.56-66

Amoah, K. B. O. Optimizing Building Information Modeling and Value Engineering Synergy for Construction Schedule and Cost Worth. Journal of Civil Engineering Research, 2023, Vol. 13(1), pp. 12–23. DOI: https://doi.org/10.5923/j.jce.20231301.02

Al Ghamdi, M. A., Al Gahtani, K. S. Integrated Value Engineering and Life Cycle Cost Modeling for HVAC System Selection. Sustainability, 2022, Vol. 14(4), Article 2126. DOI: https://doi.org/10.3390/su14042126

Chen, W. T., Chang, P. Y., Huang, Y. H. Assessing the overall performance of value engineering workshops for construction projects. International Journal of Project Management, 2010, Vol. 28(5), pp. 514–527. DOI: https://doi.org/10.1016/j.ijproman.2009.08.003

Venkataraman, R. R., Pinto, J. K. Cost and Value Management in Projects (2nd ed.). Wiley, 2023. DOI: https://doi.org/10.1002/9781394207190

Published

2025-11-27

How to Cite

Medvid , R. (2025). Analysis of theoretical approaches to the management of the cost of investment projects. Ways to Improve Construction Efficiency, 3(56), 105–114. Retrieved from https://ways.knuba.edu.ua/article/view/359023