The construction industry, characterized by its complexity and resource-intensive nature, frequently faces challenges related to cost overruns, impacting project success. This chapter explores the critical role of cost performance and benchmarking in enhancing financial efficiency and project viability. Cost performance involves executing a project within the allocated budget while maintaining quality, whereas cost benchmarking enables project teams to compare actual costs against industry standards, historical data, and predefined benchmarks to identify variances and areas for improvement. Despite extensive research and the availability of cost management tools, construction projects continue to experience cost overruns due to the interdependencies of various influencing factors. Addressing these challenges requires a paradigm shift—from viewing cost-overrun causes as independent factors to analyzing their interrelationships. The chapter discusses key strategies for improving cost performance, including advanced cost-monitoring techniques, risk analysis methodologies, and predictive modeling. Leveraging technology is essential for optimizing cost efficiency. The chapter highlights the role of building information modeling (BIM) in cost visualization, scenario analysis, and clash detection, alongside artificial intelligence (AI)-driven solutions for cost prediction and resource optimization. Additionally, project management software enhances real-time budget tracking, variance analysis, and reporting capabilities. By integrating these technologies, construction professionals can proactively manage costs, mitigate financial risks, and enhance decision-making. Ultimately, cost performance and benchmarking provide a structured approach to financial management in construction projects. This chapter equips readers with essential tools and methodologies to navigate cost-related challenges, ensuring project success through effective cost control, strategic planning, and data-driven decision-making.