Sharing the cost information generated in the building projects through the whole organization

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Journal Title

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Volume Title

School of Business | Master's thesis

Date

2022

Major/Subject

Mcode

Degree programme

Information and Service Management (ISM)

Language

en

Pages

94+1

Series

Abstract

This master's thesis was done for the construction company SRV. The need for this research emerged because the importance of high-quality cost information for the company's various functions was emphasized in the uncertain market situation. This thesis aimed to start development work on sharing cost information generated in building projects throughout the organization. A solid foundation for this thesis was created by jointly defining together with SRV three research questions related to cost calculation, building site processes, and information management. This thesis is a qualitative case study in the context of SRV. After the literature review, two research methods were used to collect empirical data: an internal questionnaire and the use of documents. A total of 108 employees from many different roles answered the structured questionnaire. The responses were analyzed using qualitative methods. The findings gave a good picture of the current cost information utilization and the development needs. The second research method examined internal documents and materials on SRV's network disks, datahub, operating system, and enterprise resource planning system. In addition, the quality and usefulness of the cost information from a facade renovation entity from a completed school project were analyzed. The findings demonstrate that many different cost calculation and comparison methods are used in SRV. Depending on the technique, varying cost information is needed as source data. Construction projects generate cost information from various processes, but the most useful is realized cost information. The reliability and quality of the data are improved if the information originates from the post-calculation process. High-quality, comprehensive, and easily accessible post-accounting knowledge strengthens the feedback loop between the cost accounting department and the projects. Even if the information is old, it can be converted into a more usable form using the construction cost index. SRV does not have a well-established post-calculation process, so one should be created and implemented on construction sites. During the research, a useful Excel tool was found for comparing the realized costs of completed projects. The tool is a good base for an application that shares cost information. In the discussion chapter, five improvement proposals have been presented to make the instrument more functional, efficient, and better suited to the use of the entire organization. The findings also show other development targets, such as expanding user rights, sharing the unit prices from the cost calculation software, and unifying the information management of the company and projects.

Description

Thesis advisor

Kuula, Markku

Keywords

SRV, information management, cost information, data quality, cost accounting

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