Knowledge-driven smart construction cost management: an agent-based modelling approach in Ningbo City

The rapid integration of cloud computing, artificial intelligence, 5 G and the Internet of Things has accelerated the adoption of smart technologies across industries. Despite its substantial contribution to national economies, limited informatization continues to generate challenges in safety, efficiency and cost management in the construction sector. And existing studies lacked a deep analysis of the mechanisms through which informatization impacts project costs. This study adopts a knowledge-driven perspective to reveal the mechanism of cost management in smart site This study and presents an Agent-Based Modelling (ABM) approach to address the limitations of traditional project management in smart site construction. By redefining production, cost and benefit functions, the ABM model simulates the effects of policy interventions, pricing rule adjustments and the application of smart functions on project costs. Field investigations of 12 smart site projects in Ningbo City, combined with simulation modelling, demonstrate the significant influence of smart site informatization on project costs and economic outcomes. Results identify an optimal level of smart function application and elucidate the interactions between human capital investment, informatization supervision and technology system application. The ABM model can capture dynamic processes that traditional static models or econometric models cannot represent. Strategic recommendations are provided to guide the development of construction informatization, optimize government incentives and enhance information technology innovation. The findings offer actionable insights for cost-effective smart site project management, advancing knowledge on integrating intelligent technologies in construction; and supporting the broader goal of sustainable, information-driven project delivery.