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Construction projects are typically conducted in a complex and dynamic environment in which the accumulation of many interrelated factors causes high uncertainty. Many factors may have negative effects on construction projects and thus cause project cost overruns. The aim of this study is to identify significant cost-influencing factors for sustainable development in construction. Considering the effects of economic and environmental factors on project cost is indeed a challenging task due to the shortage of appropriate methodology. This study examines the relationships between cost-influencing factors and construction project cost by using a structural equation model based on the generalized maximum entropy (GME) and Bayesian estimation methods. The advantages of GME and Bayesian methods are discussed, and results obtained from the statistical analysis are provided for illustration. The results can enhance cost performance through the identification and evaluation of the cost-influencing factors. The improved project performance is considered as an important step to transit into a sustainable development in construction. The sustainable development may greatly affect the emission reduction target of the industry.

Identifying Significant Cost-Influencing Factors for Sustainable Development in Construction Industry Using Structural Equation Modelling