2003 AACE International Transactions
IT.09
Web-Based Project Cost Monitoring System for
Construction Management
Daisy K.L. Yeung, Dr. Sai-On Cheung, Kevin K.W. Cheung,
and Henry C.H. Suen
n a construction project, plans are usually drawn to
I ensure that the construction work is carried out to the
desired quality, in the allowed time; and the construction
cost is expended within the preset budget. In fact, a proj-
ect is highly unlikely to proceed in all respects entirely according
to plan, particularly in the cost aspect. There are many variables
that affect the cost performance for a project (project complexity,
unforeseen ground condition and variations, etc.). When there is
a deviation between the plan and the actual work performance,
control action is definitely required.
The term cost control was defined by Seeley [2] as: “Cost con-
trol—all methods of controlling the cost of building projects with-
in the limits of a predetermined sum, throughout the design and
construction state.”
A typical management system generally consists of three
tasks: 1) goal; 2) process; and 3) evaluation. In the initial stage the
team sets out goals for project policy in relation to cost control.
The team manager then arranges and sets out details of the poli-
cy. Throughout the course of construction, regular meetings are
held to evaluate performance results, making sure that the target-
ed cost/budget are met and consistent with the cost control poli-
cy. If the results show the contrary, immediate corrective actions
are taken to correct the situation. Such management arrangement
is instrumental in preventing improper behaviors/events that may
lead to serious budget cost overrun. For this reason, the impor-
tance of cost control/monitoring management system, in particu-
lar the measurement and evaluation of performance, cannot be
over-emphasized.
Despite the vast volume of works done by the industrial par-
ticipants in relation to cost control and monitoring management,
however, most are concerned with the first two tasks, namely goal
(how to set up project cost budget) and process (how to imple-
ment cost management system). There is relatively little work
done in relation to the third task evaluation, that is the systematic
measurement and assessment of cost performance. An online cost
performance measurement and assessment system is described in
this paper.
AIMS AND OBJECTIVES
In this paper, the concept of developing an automated online
cost control/monitoring and assessment system for construction
IT.09.1
projects (PCMS) is discussed. One of the key functions of PCMS
is as a detector of potential risks and hazards in cost management,
or as a warning sign to the client and professionals that the preset
cost budget is overrun and requires immediate corrective action.
PCMS plays a vital role in preventing budget cost overruns and
enables effective cost control/monitoring management. The pro-
posed PCMS adopts the cost control/monitoring management
model as the basis for its design development. To make good use
of the advent of IT and database technologies, all of the functions
of PCMS were designed to be Web based. This provision enables
remote access, speedy data collection, retrieval, and documenta-
tion. Furthermore, a knowledge base was included in the design
to facilitate online expert advice and instructions. In achieving
this, the following are the major objectives.
Development of a Web-based interface for management and
assessment of data related cost performance. The interface should
enable automated collection, evaluation, assessment, storage, and
presentation of data.
Development of an exclusive knowledge pool for cost man-
agement. That is, guidelines and best practices, etc., for the pre-
vention and resolution of budget cost overruns. These are derived
from the practical experience of experts and professionals in the
field.
Developing a portal to handle key output data in a systemat-
ic manner. For instance, key and operational data are separated
automatically through preset functions that only data of great
importance (total expenditure per month, anticipated final expen-
diture and the percentage of expenditure to the preset budget cost,
etc.) to senior management are summarized in the executive sum-
mary report.
Set up a framework for the design of benchmark group.
Organizations or parties interested in knowing more about the
industry benchmarks or standards in cost management can form
a benchmark group.
The overall conceptual framework (Web-based interface,
knowledge pool, output data, and benchmark groups) for the
development of a Web-based cost monitoring system is illustrated
in Figure 1. Through their combined effect, PCMS enables
speedy online performance assessment and effective management
of project cost. The following sections will deal with each com-
ponent in depth.
 2003 AACE International Transactions

Users, including project Data submitted by fax,

managers, officers, etc. mail (for users without
DATA ENTRY Internet access)

PCMS
System Administrator

Web-based Control
Monitoring System

I. Web-based Interface
EXPERT ADVICE

Input Data II. Knowledge

Files Base
Advices, guidelines
based on expert
experience
DATA OUTPUT

III. Output Data

Graphs, tables, figures, etc.

Users IV. Benchmark Groups

ACTION

Corrective Action to improve cost performance Special

Taskforce if
necessary

Figure 1—Conceptual Framework of PCMS

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 2003 AACE International Transactions
Figure 2—Login and Key Functions
WEB-BASED INTERFACE
The interface is the point where project data are input, sort-
ed, and stored automatically in accordance to the preset condi-
tions It also serves as the gateway to access the vast data contained
in the PCMS, of which access is via the internet domain address.
The interface consists of the account login and data-entry tem-
plates. These are designed to enable speedy and systematic data
collection and assessment.
Account Login
By entering the correct user name and password, the user can
access to the various built-in functions: contract; survey; graph;
account; and help. These serve to give the user total control of the
data. Figure 2 shows the login and main functions in the default
screen.
Developing Data-Entry Templates
Effective cost control management depends on a sound mon-
itoring system, which involves making measurements as the proj-
ect proceeds and comparing those measurements with desired or
expected value. A list of cost control performance parameters asso-
ciated with a systematic approach of handling data is proposed to
(1) reflect the current performance; and (2) collect and interpret
the data. Indeed, developing parameters for the measurement and
assessment of project cost performance has been the core subject
of effective management. Existing measurement tools (activity
based ratio, variances, and earned value analysis) tend to rely
heavily on manual data collection and interpretation, such
approach is losing place in the modern society with the wide
applications of Internet and database technologies. As others have
suggested, an automated and Internet-based monitoring system
can remove geographic barriers and reduce time in transferring
data; in addition, it enables exchange of massive volumes of cost
IT.09.3
information at high speed and at relatively low cost [1]. For this
reason, PCMS, by making use of the templates (computer-aided
data entry forms), is capable of ascertaining current performance
figures in an automated manner. The ability to conduct online
data collection and transfer means that much time and expenses
can be saved. Figure 3 shows the various computing components
of PCMS.
Design of Template
Relevant data (those related to cost control performance) are
input into the template manually by the project administrator.
The content and design of the template depends on the number
of performance parameters, which in turn depends on a number
of factors, such as the size, scale, and the contract duration period
of projects. Hence, like any project performance measurement
tool, the set of cost performance parameters adopted is unique. In
the proposed template, parameters are emphasized on operation
parameters. It is mainly concerned with measurement of the
issues, such as the cost performance efficiency, the preset cost
budget, the actual expenditure, and the forecasted expenditure of
the project. In Figure 4, the actual appearance of the data entry
template on screen is displayed.
KNOWLEDGE POOL
The knowledge pool contains expert advice and guidelines
that are vital for cost control/monitoring management. It plays a
supporting role to complement the automated assessment system.
Upon completion of data entry via the template, the built-in pro-
gram will automatically highlight those parameters that are under-
performed. Expert advice will be given automatically to the
underperformed parameters from the knowledge pool. For exam-
ple, data provided in relation to the parameter of planned month-
ly expenditure versus actual monthly expenditure indicates that
 2003 AACE International Transactions

Templates
Collect Data
submitted via
INPUT internet or from
System
Administrator

Automation Suite
(Web-based)

PHP MySQL
(Scripting (Database
PROCESS Language) Backend) Raw Data

OUTPUT

Figure 3—Computing Components of PCMS

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 2003 AACE International Transactions

Clicking this bar, data

input template for the
selected parameter is
entered

Budget/committed
contract sum on screen

Payments data sheet on

screen

Variation orders data

sheet on screen

Claims detail sheet on

screen

Liquidated Damages
detail sheet on screen

Figure 4—Data Entry Template

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 2003 AACE International Transactions
expenditure spent in that particular month exceeded the planned
budget. An alert sign will be displayed, and by clicking on the alert
sign, practical suggestions will be given on the screen (Figure 6
refers). The practical suggestions are in fact collected from and
based on expert experience and professional practices in the con-
struction field.
DATA-ENTRY PROCESS
Before embarking on explaining the data output component
of PCMS, a brief account on how PCMS works in practice is nec-
essary. As mentioned in the above, PCMS is operated through a
Web-based interface. After successfully entering the contract
details, the user can begin the data-entry process. The template
consists of a number of parameters. There are five key control
parameters to monitor the degree of compliance on the cost per-
formance. These are: (1) cost performance efficiency, (2) pay-
ments, (3) variations, (4) claims, and (5) forecast final contract
sum.
By selecting the bar in the operation section (Figure 4), the
selected control parameter is entered. Input the data for that
parameter into the space provided and click on the submit button
at the bottom of the template. The completed data-entry will auto-
matically be transformed and stored in the MySQL database.
Data stored in the MySQL database is partitioned in accordance
to the project details, i.e., project reference number, month and
year, etc. The data entry template in an on-line environment can
be found in Figure 4.
The output data contains key project data in the forms of
summary tables, graphs, figures, etc. These are the basis informa-
tion for management decision-making and are extremely useful
for meeting discussions and presentations.
Dissemination of Collated Data-Graphical Presentations
All input data can be analyzed through the built-in expert sys-
tem. PCMS allows the users to monitor the project performance
over a certain period. Key data can be transformed in the form of
charts, curves, and tables within seconds by the MySQL database
(an open source database). In sum, there are three functions avail-
able in terms of data dissemination: 1) executive report; 2) com-
paring between projects; and 3) trend/movement. In Figure 5,
users can select their desired format of data dissemination.
Executive Report
The key data input is analyzed and summarized in the exec-
utive report, with alert signs attached to the underperformed
parameters. In Figure 6, an executive report template is displayed.
Different from the data entry template, the executive report con-
tains a section of key parameters (i.e., the cost performance effi-
ciency, payment status, variation order status, claims status, and
the forecast final contract sum), which are the most important fig-
ures/data for senior management. Furthermore, graphical presen-
tations are available in this template. By clicking the “graph” box,
key data in graphical form will be displayed on the screen. This
provision enables senior management to have a clear picture on
the cost performance of the project.
IT.09.6
Comparing between Projects
In addition to the above function, PCMS also allows the users
to compare key parameters between similar projects (Figure 7). In
Figure 8, the comparison function is illustrated in the default
screen. By studying and comparing the movements of the two
curves, the management can have better understanding of the dif-
ferences/similarities in cost performance efficiency between two
projects. As such, management can discuss with their subordinates
ways to identify future improvement.
Trend/Movement
Very often, particularly when making important decisions,
simply studying performance over a month is not good enough. It
is necessary to study the performance over a period of, say three
months or more, to really understand the movement pattern
/trend, before any solid observation can be made. Hence, PCMS
allows the users to choose the movement/trend of the key param-
eters, including (1) cost performance efficiency; (2) accumulative
expenditure; and (3) percentage of actual expenditure against the
preset budget (Figure 9).
BENCHMARK GROUP
Project data can also be used to set up benchmarks for the
industry by using the compare graphical function mentioned in
the above. Interested groups and organizations can form bench-
mark groups, which are comprised of professionals in the same
field. Each benchmark group should have its set of goals and
objectives, so that it can be used to devise a set of exclusive bench-
marks or standards by comparing the key output data (e.g., cost
performance efficiency) of different projects. In doing so, both
strengths and weaknesses can be identified and best practices can
be developed to improve the cost control standard. Like any
organization, a systematic and well-structured framework is need-
ed for the successful implementation of a benchmark group.
Figure 10 is a model for the development, implementation, and
maintenance of a benchmark group in cost control management,
and provides the basis for the design and establishes the contents
of a benchmark group.
COMPUTING COMPONENTS
The proposed “Web-based PCMS” allows instant access and
data collection, removes geographic barriers, and reduces time in
transferring data The advancement of Web and database tech-
nologies makes the concept of online monitoring no longer a
dream but a reality. In addition, PCMS enables the exchange of
massive volumes of information at high speed and at relatively low
cost [1]. This system also reduces human and mathematical
errors, as data are now directly entered by the users and data col-
lection and calculation is now performed by the computer. In
these contexts, PCMS is a total automated monitoring system.
 2003 AACE International Transactions

Figure 5—Output Data Request Template

BENEFITS OF PCMS REFERENCES

PCMS is a powerful monitoring and assessment tool. It is 1. Deng Z., Li, H., Tam, C., Shen, Q., and Love, P. (2001) “An
capable of reducing much time for data-collection and dissemi- Application of Internet-Based Project Management System.”
nation of collated data. It helps project managers and administra- Automation in Construction 10: 239-246.
tors to assess cost performance in an effective and timely manner. 2. Seeley, H. Ivor. (1994) Building Economics. Macmillian.
Performance parameters can be added or reduced to reflect the
current industry environment. Such flexibility is essential for
effective cost control management. It can cope with the increas- Daisy K.L. Yeung
ingly complex and fast-changing social, legal, and political envi- City University of Hong Kong
ronments. PCMS facilitates automatic, online, instant graphical Department of Building and Construction
presentation of the performance data of the construction enter- 83 Tat Chee Road, Kowloon Tong
prises, making it possible for construction enterprises to make Hong Kong
important decisions (i.e., to take immediate corrective actions in E-mail: BCDAISYY@cityu.edu.hk
areas that are under-performing) anytime, anywhere.

Dr. Sai-On Cheung

he proposed PCMS streamlines the cost control per- City Univ of Hong Kong

T formance measurement and assessment process

through its Web-based interface, database, and expert
systems. The Web-based interface enables speedy col-
lection of cost performance data through the Internet, and the
collected data are stored in the database and then assessed by the
Dept of Building & Const (1)
83 Tat Chee Rd Kowloon Tong
Hong Kong
E-mail: bcsoc@cityu@edu.hk

expert system. The final product in this process is the executive

report, which contains advice and graphical presentations of Kevin K.W. Cheung
important data all in one sheet. The primary purpose of PCMS is City Univ of Hong Kong
to reduce the risk of project expenditure overrun by directly Dept of Building & Const (1)
observing and assessing the data submitted at the instant, so that 83 Tat Chee Rd Kowloon Tong
preventive and corrective measures can be taken at once. Hong Kong
However, PCMS is never intended to replace management
involvement in making decisions, particularly those involving
human factors. Rather, the Web-based monitoring process is to Henry C.H. Suen
improve efficiency and accuracy and serves as a complement to City Univ of Hong Kong
managerial and leadership competence. The proposed PCMS Dept of Building & Const (1)
enables construction management to examine financial perform- 83 Tat Chee Rd Kowloon Tong
ance and compare with others within the field through a bench- Hong Kong
mark group. Only by comparing performance, weaknesses, and
strengths can corrective measures be implemented to improve the
overall cost control standard.

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 2003 AACE International Transactions

Figure 6—Executive Report Templates

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Figure 7—Graphic Comparison Function Request Template

Figure 8—Comparison Function: Cost Performance Efficiency (Project C56 vs. Project C57)

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Figure 9—Trend/Movement Function: Cumulative Construction Expenditure

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 2003 AACE International Transactions

PLANNING
(Goals and objectives setting)

ORGANISING
(Divide into necessary
functional groups)

DATA SHARING and

COMPARING
Feedback Loop (Share and compare data from
different projects)

SUMMARY OF FINDINGS
(Draw up ‘Benchmarks)

TESTING
(Testing of Benchmarks in real
projects)

Figure 10—Conceptual Model for Organization of Benchmark Groups

IT.09.11