The application of cost value reconciliation (CVR) in the construction industry is considered an important part of cost management for the financial control of construction projects. However, it is often assumed that CVR is not widely utilised by contracting organisations operating in the UK construction sector.

This is purported to be due to the associated resource requirements and technical skills necessary to accurately incorporate the technique into an organisation’s processes. Clearly, this is especially the case with regard to ‘smaller’ contractors with less financial capabilities, and a requirement to keep overhead costs to a minimum. This assumption has formulated the basis of this research.

The review of literature indicated that the field of CVR is not a widely covered topic. This paper therefore considers the application of CVR in the UK construction industry.

This includes how CVRs are produced and the information output, in addition to a measure of its utilisation within industry. Additionally, areas are identified that may be adapted in order to increase its application.

From the research theoretical CVR models are developed aimed at enhancing CVR as a management tool. The proposed ‘models’ are devised to widen the application of CVR amongst contractors with less financial capabilities or for those that operate mostly on short-term contracts. Additionally, the proposed models will provide the opportunity to enhance the benefits to those who regularly apply the technique in practice.