Abstract

     The cost of public construction projects is a central topic in project management. However, studies have primarily focused on cost at the project level, not on cost management at the portfolio level. In this paper, we take the perspective of a government agency, conducting a strategic initiative to increase cost-efficiency in their portfolio of construction projects. We use an action research approach to investigate the dynamics of the initiative and the implementation of resulting actions to achieve lasting change towards cost-efficiency. Co-creating actions for cost-efficiency together with the project teams was important for the success of the strategic initiative. For successful implementation, alignment of the objectives of the initiative with organizational strategy, and knowledge transfer between projects is central. This study expands the project management literature regarding strategic cost management of portfolios of construction projects and provides practical guidance for organizations.

Introduction

     Any project-based organization (PBO) that wants to achieve lasting change needs to take action. For a lasting effect, the changes need to be institutionalized, which implies learning from temporary actions to permanent practices. A wide specter of challenges that occur in such settings, has been studied in the literature (e.g. Saunders et al., 2008; Stensaker et al., 2008; Kunisch et al., 2019; De Melo et al., 2020). However, these studies tend to focus more on theory than on what happens in reality. This study responds to the need for more practice-based research in the field that explores the reality of strategic enactment through a project portfolio (Clegg et al., 2018) and uncovers linkages between practices, organizational learning and change (Brunet, 2019). Additionally, Klessova et al. (2020) ask for more empirical studies to understand the processes that influence knowledge integration in the context of innovation projects.

     In this paper, we report on an empirical study concerning how a public organization conducted an initiative to lower the overall cost of their construction projects. Project cost is a complex issue and influenced by many factors. However, it is relevant to all types of projects as it can be a decisive factor in whether to invest at all, when choosing between project alternatives, or in a client’s decision of which organization will conduct a project.

Conclusions

     In the previous chapter, we have discussed the results of this study and answered the research questions. In the following paragraphs, we will present the study’s contribution to both theory and practice and discuss the validity of the study as well as suggestions for further research.

۶٫۱٫ The study’s contribution to project management knowledge

     This study contributes to the project management literature by providing a rich empirical account of a strategic cost-efficiency initiative in a project-based organization, which has not been previously focused on in the literature. Applying an organizational sociology perspective to the initiative shifts the focus from individual projects to the portfolio as a unit of analysis. The observed dynamics of the strategic initiative align with previous research on the necessity of sensemaking through action in the implementation of change activities (Stensaker et al., 2008). It also adds the dimension of a project-based organization to the findings by Willems et al. (2020) with respect to how the autonomy of strategic initiatives influences the implementation of results in the permanent organization.