Entropy-centric framework for understanding and managing project dynamics in construction

Abstract

Traditional construction management methodologies often fail to address unforeseen challenges and uncertainties. This paper highlights that projects can exist in different states, often unidentified by project managers. These varying states necessitate different approaches, indicating that one-size-fits-all methods are insufficient. Using project data, entropy calculations, and simulations within a Design Science Research methodology, this paper offers indicators for evaluating project states and improving decision-making. The application of ChaosCompass to eight real-world projects showed higher entropy in projects exceeding budgets and schedules, indicating greater disorder and unpredictability. Conversely, projects on budget and schedule displayed more controlled progress. The findings reveal a significant correlation between high entropy and low forecast accuracy, underscoring entropy's critical role in project dynamics. This paper advocates an entropy-based approach to construction management, promising a more resilient and adaptable framework to address modern project complexities.