A study on the composition of construction logistics costs

Abstract

With the advancement of construction technologies and materials, more and more processes are conducted off site. The advantages of using prefabricated components are widely documented, which include a lower project cost, better quality control, faster assembly on site, and lesser waste. However, extensive use of off-site fabrication demands for a higher management control on the logistics process. Failing to do so may result in multi-handling and delays which could compound the time and cost pressure of a construction project. In this paper, the construction logistics process which captures the movement of precast concrete components from the prefabrication yard to the construction site is introduced. The respective logistics costs are identified based on the activity-based costing approach. This paper should help managers and planners to increase their understanding on construction logistics activities and their corresponding costs so as to increase their bid competitiveness and/or improve the chance of success at the construction stage by minimising the construction logistics costs.