Construction Project Cost Feedback in Developing Economies: the Case of Pakistan

Construction projects are fraught with uncertainty and they are learning processes. As such, managers need to constantly use field data to refine planning. Feedback is an effective management tool because it serves an informational function that enhances work performance. The construction industries in developing economies like Pakistan suffer many problems such as delays, cost overruns, and miscommunication of information within organisations. A research focusing on the communication system and feedback control processes among the members of general contracting organisations in Pakistan has been conducted. Three cases were selected from a list of general contracting organisations for study through formal and informal interviews. Construction companies in Pakistan do not have effective systems to collect feedback data from the site. They collect feedback data only through monthly cost bills. There is also no practice of standardization of data. The main reason for this is the heavy use of subcontracting and lack of formally educated personnel in the construction industry. Suggestions are made to improve the feedback system and project performance.