A Critical Analysis on the Cost Planning in Building Project Success: A Theoretical Review

The purpose of this article is to discuss how the relationship between project success and cost planning with management techniques. There are three practical ways in cost planning for financial control in this situation: the positive efforts made by cost managers, the cost planning and control process, and practical preventative and corrective actions. The relevant data and information are collated from professional journal publications, lecture notes, reputable web resources, and the reliable experience of construction industry specialists executing cost planning and associated activities. The critical point of this paper is that cost planning can significantly improve the project's financial performance. For instance, cost planning is likely to reduce project variations and corresponding financial savings. It may also contribute to developing investor confidence by effectively managing total project expenditures. In general, this report analyses the topic comprehensively to understand the importance of cost planning and how this approach positively influences project performance, especially for cost management effectiveness. Furthermore, the positive impact of preventative and corrective activities on the project success is analysed.