The industrial construction contracting business is crucial across all sectors, including private, government, and the public, with cost being a crucial factor. The goal of this study was to create an equation model that could decrease the cost of production factors in the construction industry. The study conducted high-quality research, including in-depth interviews with nine experts to create quantitative research tools and feedback from 11 qualified individuals on the research model. The study gathered data from 500 industrial construction contracting businesses, using descriptive, inferential, and multivariate statistics for analysis. The research guideline for the cost reduction strategies for the production factors in the construction industry is composed of four aspects. The most important item of each aspects are as following: 1) Business Alliance (  = 4.03) joint planning between contractors and subcontractors to prevent potential conflicts, 2) Work Process Improvement (  = 4.00) quality control throughout the construction process and before delivery, 3) Skill Labor Development  ( = 3.72) establishment of training centers to continuously improve labor skills, and 4) Construction Technology (  = 3.64) use of video conferencing to facilitate collaboration among teams working on multiple projects simultaneously. The hypothesis test showed that the difference in the construction industry varies significantly between large, medium and small-sized businesses at a statistically significant level of 0.05 the results of the analysis of the developed equation model structure found that it met the evaluation criteria and was consistent with empirical data. The coefficient of determination (R-squared) was 0.137, the adjusted R-squared was 1.109, the index of fit was 0.961, and the root mean square error of approximation was 0.015.