Addressing the Challenges in Cost Management of Construction Projects by Using AI

Abstract

Cost management is one of the most important drivers of successful construction projects. Even with established norms like the Project Management Body of Knowledge (PMBOK), Indian construction projects are still afflicted by perennial cost overruns and wastages. This research explores how Artificial Intelligence (AI) can be applied to enhance cost management by enabling real-time decision-making, predictive analytics, and automation. This research uses literature reviews, case studies (DLF Downtown, Taramani), and expert surveys while exploring challenges and suggesting AI-based solutions. The study proposes key cost issues such as estimation error, poor coordination of stakeholders, scope creep, and late procurement. The study continues to outline how AI techniques such as Machine Learning (ML), Natural Language Processing (NLP), and Robotic Process Automation (RPA) can be used to address these issues. The study also correlates AI tools with PMBOK’s cost management processes to create a hybrid framework for improved cost management. Challenges to implementing AI, such as high cost, lack of awareness, and integration issues, are addressed with expert opinions by industry experts. By adopting this integrated perspective, the paper presents an AI integration roadmap for construction cost management. The research identifies that while AI is in its infancy phase of adoption in India, upcoming policies are showing the way towards digitalization. The model laid out hereunder positions AI as a strategic driver of real-time, proactive, and sustainable cost management.