INTERNATIONAL JOURNAL OF STUDENT PERFORMANCE AND EDUCATIONAL RESEARCH

Abstract

This study examines the impact of cost control strategies on profitability in the construction industry. The research explores various cost control techniques employed in construction projects, their implementation challenges, and their effectiveness in improving financial performance. The study highlights the critical role of cost management in an industry characterized by complexity, uncertainty, and thin profit margins. Key cost control strategies discussed include material cost control, labor cost control, and overhead cost control. The research also investigates methods for evaluating these strategies, such as Cost-Benefit Analysis (CBA) and Return on Investment (ROI) analysis. Findings indicate that effective cost control measures directly enhance profitability by reducing expenses and optimizing resource allocation, while also providing indirect benefits through improved operational efficiency and increased customer satisfaction. The study concludes that despite industry-specific challenges, successful implementation of cost control strategies is crucial for maintaining competitiveness and ensuring long-term profitability in the construction sector.