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The construction sector is one of the largest and most significant sectors in Republic of Croatia. Business in this sector has largely declined in the past few years as a result of the global economic crisis. Because the goal is to achieve a cost leader strategy, a lot of attention has been focused on decreasing operating expenses through the optimization of production planning. This study examines linear and matrix planning methods. The most common linear planning method is the Gantt chart, while CPM/PERT analysis is the most common matrix method. Based on the use of these methods, the type of planning and project execution in the context of construction business is researched. Analysis is based on testing which is conducted in large and medium construction companies. Results of this study indicate that linear and matrix planning methods are equally utilized in planning. Construction companies are more likely to use matrix planning methods when dealing with complex and long term projects where significant savings can be achieved both in terms of time and expenses. Linear planning methods are only used when dealing with smaller projects or for certain groups of activities within large projects. [ABSTRACT FROM AUTHOR]