Methodological Aspects of Management Accounting in Construction Organizations

Abstract

The complexity and specificity of construction processes demand an advanced approach to management accounting that ensures financial transparency, cost control, and efficient resource allocation. Traditional accounting models often fall short in addressing the dynamic, project-based, and multi-phase nature of construction activities, especially in the context of digital transformation and sustainability trends. Despite the growing body of research on management accounting, practical implementation in construction organizations remains inconsistent, particularly in integrating cost accounting with life cycle analysis and digital platforms. This study aims to analyze the methodological aspects of management accounting in construction organizations, assess existing practices, and propose an improved accounting framework tailored to industry-specific needs. The findings reveal key shortcomings in current practices, such as limited digital integration, lack of accounting by responsibility centers, and insufficient budgeting coordination. The study proposes aligning cost management with the construction project's life cycle and integrating ERP and BIM technologies for real-time decision-making. It also introduces strategies for risk sensitivity analysis and life cycle costing to improve long-term financial outcomes. The research presents a holistic methodology that incorporates traditional cost accounting methods—such as custom, actual, and normative approaches—with modern digital tools and sustainable construction practices. The proposed model enhances the effectiveness of financial planning, improves internal control, and supports strategic sustainability. It provides construction managers with a comprehensive tool for informed decision-making and optimizing project performance from planning to utilization.