A study of cost overruns in complex multi-stakeholder road projects in the United Arab Emirates

Author(s):  
Ihsan Issa Ahmad Al Hosani ◽  
Fikri T. Dweiri ◽  
Udechukwu Ojiako
2020 ◽  
Vol 12 (18) ◽  
pp. 7377
Author(s):  
Adriana Gómez-Cabrera ◽  
Amalia Sanz-Benlloch ◽  
Laura Montalban-Domingo ◽  
Jose Luis Ponz-Tienda ◽  
Eugenio Pellicer

Rural roads play an indispensable role in economic and social well-being, especially in developing countries, contributing to achieving the Sustainable Development Goals. For this reason, it is necessary to plan these projects properly to guarantee their success. In this line, the objective of this research is to identify significant variables generating overruns in time and cost using empirical data of 535 rural road projects in Colombia from 2015 to 2018. Bivariate analysis, with statistical tools like Spearman’s Rho and Kruskal–Wallis, allowed identifying that higher values of variables like budget and project intensity are related to higher deviations in cost and time. Additionally, it was found that projects with shorter durations are reporting higher time overruns. The worst performers are projects executed in the year that council mayors start their terms, those developed in municipalities with more resources, and those awarded using a competitive bidding process. Multivariate analysis, through Random Forest, assessed the effect of considering all variables interacting simultaneously and ranking them in order of importance. The results demonstrated a relationship between cost and time performance, and that numerical variables are more significant than the categorical ones. This study contributes to a better understanding of the causes of delays and cost overruns on rural roads, providing useful insight for researchers and industry practitioners.


2020 ◽  
Vol 27 (10) ◽  
pp. 3135-3153
Author(s):  
Muhammad Irfan ◽  
Muhammad Sohail Anwar Malik ◽  
Syyed Sami Ul Haq Kaka Khel

PurposeThe purpose of this research is to rank the most significant factors of organizational structure that can reduce time and cost overruns (nonphysical waste) in road projects of the developing countries. Additionally, the effect of factors of organizational structure on nonphysical waste in road projects is also measured.Design/methodology/approachFactors of organizational structure causing time and cost overrun are extracted through a content analysis of the published literature. Moreover, a questionnaire survey is carried out involving 128 professionals to assess the effect of organizational structure factors on time and cost overrun. Finally, to obtain a more objective evaluation, relative importance index and regression analysis techniques are utilized, and the most severe factors influencing time and cost overrun are indicated.FindingsThis study found out that top management support and procurement procedures are the most significant factors influencing time and cost overruns in road projects of the developing countries.Originality/valueA small number of studies have been conducted to investigate the effect of factors of organizational structure on time and cost overrun in the construction industry. And even more, its relation with respect to road projects of the developing countries is limited. This research highlights the effect of most significant factors of organizational structure that influence the nonphysical waste in road projects of the developing countries. Therefore, this study adds to the body of knowledge by recommending that all the stakeholders of construction project should pay close attention toward these factors to control the enigma of time and cost overrun. It might also prove helpful, if implemented to its full extent, in all the road construction activities undertaken.


2017 ◽  
Vol 15 (2) ◽  
pp. 110-127 ◽  
Author(s):  
Charles Teye Amoatey ◽  
Alfred Nii Okanta Ankrah

Purpose The purpose of this paper is to investigate the causes of road construction delays in Ghana and identify appropriate mitigation measures. Design/methodology/approach The initial approach involved an empirical analysis of 48 road projects to quantify the extent of time. This was followed by a survey of the perception of road agency and donor partner officials of the critical causes of road project delays. Findings About 70 per cent of road projects experience delays and 52 per cent experience cost overruns. The average time overrun and cost overruns of road projects in Ghana was 17 months and US$1.15m (or 22.5 per cent), respectively. The five most critical causes of road construction delays were delay in finance and payment of completed work by owner (client-related); inadequate contractor experience (contractor-related); changes in scope by the owner during construction (client-related); delay to furnish and deliver the site to the contractor (client-related); and inflexible funding allocation for project items (donor-related). Research limitations/implications The most critical constraint of this study is the fact that findings are based on only the views of industry professional experts. It may be assumed that despite using broadly used terminology to refer to the causes of project delays, the interpretations by respondents may have differed from those intended. Further research could look at the correlation between time overrun and cost overrun using principle component analysis. Practical implications The identified delay factors are not unique to the road sector. From both academic and practical perspectives, the results emphasizes on the need for a holistic and integrated risk management model for the entire construction industry in Ghana. Originality/value The paper examined the causes of road project delays in the Ghanaian context and recommended remedial measures.


Author(s):  
Alasdair James Marshall ◽  
Udechukwu Ojiako ◽  
Terry Williams ◽  
Jumah Rashid Al-Mazrooie ◽  
Fenfang Lin ◽  
...  

Rapid national infrastructure growth, as witnessed today in many countries such as the United Arab Emirates, commonly makes fast-tracking demands of what are already highly complex multi-stakeholder projects. Considering the long history of airport project failures in a number of fast-growing cities, the chapter explores risk management enhancements for addressing the challenges associated with transitions from project completion to commencement of operations. The proposed solution in the pages that follow is to have in place dedicated risk management teams spanning the transitions. These teams should provide a locus for stakeholder collaboration based on a shared concern to build excellence into the customer experience from commencement of operations onwards.


2021 ◽  
Vol 10 (3) ◽  
Author(s):  
Osama Salim Al Adawi ◽  
Hussin Yahia

Cost overrun is a common phenomenon in construction projects of any country, be it in developing or developed countries. This issue is a critical issue that impacts a project's success. It, therefore, needs serious attention from all the participants in the construction project to keep the projects in safe mode, to be completed within its limited cost, time, and performance. Cost overrun has a negative impact on construction project performance, which is because the construction industry is vast and complex. Any difficulty occurring during the project's life cycle leads to other problems in various parts of the project. Studies by many researchers’ cost overruns by literature review, and according to their studies suggested the most cost overrun causes. The aim of this study is to identify the most critical factors leading to cost overruns on road projects in Oman, and then provide suggestions to resolve them.


2019 ◽  
Vol 11 (8) ◽  
pp. 2367 ◽  
Author(s):  
Mohammed H. Alzard ◽  
Munjed A. Maraqa ◽  
Rezaul Chowdhury ◽  
Qasim Khan ◽  
Francisco D. B. Albuquerque ◽  
...  

Assessing the current levels of greenhouse gas (GHG) emissions from road transportation projects allows for benchmarking and is essential for potential emissions reduction. The objective of this study was to estimate the GHG emissions associated with the construction and operation of three road cases—two primary roads and one secondary road network—in Abu Dhabi, United Arab Emirates. The GHG emissions produced by the study cases were estimated using the RoadCO2 estimation tool. Results showed that the total emissions (in kg CO2e/m2/y) range from 76 for the secondary road case to 1100 for the primary road cases. The operation phase is responsible for 94–98% of these emissions; the construction phase is responsible for the rest. Road works contributed the most to GHG emissions during the construction phase. The contribution of the remaining categories of the construction phase fluctuates within a certain case and among the considered cases. The equipment used in the construction phase for the three cases contributed 15–70% of the total phase emissions, while the remaining emissions were due to construction materials. In the operation phase, emissions were mainly generated by vehicle movement. Street lighting also contributed to emissions during the operation phase. On the other hand, the irrigation of planted trees along the road had a very low impact on GHG emissions, and carbon sequestration by these trees had a negligible effect in terms of acting as a carbon sink. The results obtained from this study were compared with other cases reported in the literature.


2020 ◽  
Vol 19 (2) ◽  
pp. 334-345
Author(s):  
Maria Calahorra-Jimenez ◽  
Luis Fernando Alarcon ◽  
Cristina Torres-Machi ◽  
Alondra Chamorro ◽  
Keith Molenaar

2021 ◽  
Vol 11 (1) ◽  
pp. 103-120
Author(s):  
Samhita Mangu ◽  
Thillai Rajan Annamalai ◽  
Akash Deep

PurposeThe use of public–private partnership (PPP) approaches for developing infrastructure has been well recognized. The allocation of risk between public authority and private sector differs among the different types of PPP projects. The objective of the paper is to analyze the factors that influence the type of PPP and the performance of different types of PPP contracts.Design/methodology/approachA unique data set of 202 national highway PPP projects from India, comprising 154 toll and 48 annuity projects formed the basis of the study.FindingsThere are significant differences between toll and annuity PPP projects. The former are longer, are implemented in better developed states but are also characterized by higher cost over-runs. The latter are characterized by higher debt–equity ratio.Practical implicationsMitigating revenue risk can significantly enhance the debt capacity of the projects, thereby reducing the overall cost of capital. To make toll roads attractive for bidders, they have to be developed as longer stretches. Toll projects that are immediately ready for development at the time of award would reduce cost overruns of toll projects and sustain the interest of private developers.Originality/valueComparison of toll and annuity PPP road projects has never been done previously. The unique data set used in this study highlights the differences in characterization and performance for both the project types. The study provides evidence support to “intuition” and enables policymakers to choose the right form of PPP to realize their objectives.


Author(s):  
Mega Waty ◽  
Hendrik Sulistio

ABSTRACTChange orders include a number of variants in the scope of work namely the amount of material, design errors, and price changes. This paper discusses change orders in a road construction project in Banten by investigating the causes, studying their effects on the project, and identifying the beneficiaries. The study used five road projects as actual case studies and the questionnaire used a six-point Likert Scale. To determine the ranking of factors that influence the causes of change orders, the effect of change orders and the factors that benefit from change orders are used the Relative Importance Index (RII) calculation. The most important effects of change orders on projects are found to be schedule delays, cost overruns and disputes. The contractor as the party that benefits the most from the change order is followed by the consultant and then the owner. Keywords: change order; road project; Relative Importance Index (RII) ABSTRAK Change order mencakup sejumlah varian dalam ruang lingkup pekerjaan yakni jumlah material, kesalahan desain, dan perubahan harga. Makalah ini membahas change order dalam proyek konstruksi jalan di Banten dengan menyelidiki penyebab, mempelajari efeknya pada proyek, dan mengidentifikasi pihak-pihak yang diuntungkan. Penelitian menggunakan lima proyek jalan sebagai studi kasus aktual dan Kuisoner menggunakan Skala Likert Enam poin. Untuk mengetahui peringkat faktor yang mempengaruhi penyebab change order, efek change order dan faktor yang diuntungkan dari change order digunakan perhitungan Relative Importance Index (RII). Efek terpenting dari change order pada proyek ditemukan adalah penundaan jadwal, pembengkakan biaya dan perselisihan. Kontraktor selaku pihak yang paling diuntungkan dari change order diikuti oleh konsultan dan kemudian owner.


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