Cost Reduction Strategies in Residential Construction Through Supply Chain Optimization and Workforce Management

Gocha Kalandadze

Citation: Gocha Kalandadze, "Cost Reduction Strategies in Residential Construction Through Supply Chain Optimization and Workforce Management", Universal Library of Innovative Research and Studies, Volume 03, Issue 02.

Copyright: This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

The article explores cost reduction strategies in residential construction through the joint analysis of supply chain optimization and workforce management. It addresses procurement planning, supplier coordination, logistics capacity, material-flow control, workforce productivity, decentralized site execution, and centralized quality oversight as connected cost-control mechanisms for affordable housing delivery. The article used an integrative review of studies on construction cost overruns, prefabricated and modular supply chains, construction logistics, material management, affordable housing barriers, and additive manufacturing in architecture. The main results are that residential construction costs can be reduced when project organizations improve early cost-risk diagnosis, coordinate suppliers, calibrate transport and inventory decisions, prevent material shortages, reduce rework, and align workforce incentives with both productivity and quality. The synthesis also shows that modular, prefabricated, digital, and additive methods support cost reduction only when managers account for logistics constraints, supplier maturity, training needs, regulatory conditions, and quality control. The article will be useful to researchers, residential developers, project managers, procurement specialists, site managers, and policymakers interested in cost-efficient residential construction and affordable housing delivery without lowering durability or design standards.


Keywords: Residential Construction; Cost Reduction; Supply Chain Optimization; Workforce Management; Affordable Housing.

Download doi https://doi.org/10.70315/uloap.ulirs.2026.0302012