Cost Certainty and Time Certainty: an International Investigation

Cost certainty and time certainty are major concerns to both clients and contractors, as they have a direct impact on resources. An international study of contractors’ cost certainty and time certainty is presented. Based on the performance and practice of contractors in Japan, the UK and the US, the multiple regression analysis reveals cost certainty to be influenced by time certainty and its perceived importance, annual leave, and past performance. Time certainty is found to be influenced by cost certainty and the perceived importance of cost, number of defects and past performance. Findings indicate that cost certainty and time certainty are closely related and interact with each other. An improvement in one aspect can lead to the enhancement of the other, and vice-versa. Contractors are advised to adapt an integrated approach, to emphasize cost and time certainty and to reduce defects in order to improve their performance in cost certainty and time certainty and strengthen their competitiveness in the market.