scholarly journals Causative factors of cost overrun in highway projects of Sindh province of Pakistan

2017 ◽  
Vol 271 ◽  
pp. 012036 ◽  
Author(s):  
S Sohu ◽  
A Halid ◽  
S Nagapan ◽  
A Fattah ◽  
I Latif ◽  
...  
Keyword(s):  
Cost Overrun ◽  
Highway Projects ◽  
Sindh Province ◽  
Causative Factors

scholarly journals Contributing Cost Variation Factors in Highway Projects

2018 ◽  
Vol 4 (8) ◽  
pp. 1793
Author(s):  
Samiullah Sohu ◽  
Abd Halid Abdullah ◽  
Sasitharan Nagapan ◽  
Ashfaque Ahmed Jhatial ◽  
Muhammed Tahir
Keyword(s):  
Construction Industry ◽  
Cost Overrun ◽  
Site Management ◽  
Highway Projects ◽  
Building Projects ◽  
Cost Variation ◽  
Sindh Province ◽  
Causative Factors ◽  
Poor Site ◽  
Financial Issues

Cost overrun is known as when the final cost of any project surpasses the sectioned cost of the project at the floating of tender. Cost overrun or cost variation overrun is the main problem in the construction of highway projects in Sindh Province of Pakistan. To attain the main objective of the research a literature review was conducted and 64 general factors of cost overrun were found in construction industry. A questionnaire was developed and distributed among 28 well experienced experts having maximum experience in construction of building projects. Gathered data was analyzed by method of average index. Results shows that main and causative factors of cost variation were financial and cash issues faced by owner, slow information between parties, change in price of material, delay of design, poor site management, payment and financial issues problem faced by the contractor and delay in decision making. This research can help petitioners of highway projects to overcome these main and causative factors of cost.

scholarly journals Mitigation Measures for Significant Factors Instigating Cost Overrun in Highway Projects

2018 ◽  
Vol 4 (10) ◽  
pp. 2338
Author(s):  
Samiullah Sohu ◽  
Abd Halid Bin Abdullah ◽  
Bashir Ahmed Memon ◽  
Sasitharan Nagapan ◽  
Nadeem Ul Kareem Bhatti
Keyword(s):  
Construction Industry ◽  
Role Model ◽  
Mitigation Measures ◽  
Research Approach ◽  
Cost Overrun ◽  
Highway Projects ◽  
Analysis Technique ◽  
Sindh Province ◽  
Structured Questionnaire ◽  
Significant Factors

Construction industry has created numerous employment opportunities and playing a role model in economic growth of Pakistan. This industry is facing serious and critical problem of cost overrun especially in highway sector in country Pakistan particularly in Sindh Province. The purpose of this study is to identify mitigation measures for significant factors of cost overrun in highway projects of Sindh Province. In this study, mixed-mode research approach has been used. Quantitatively, a structured questionnaire based on 64 common factors of cost overrun from in-depth literature review was developed and distributed to30 selected respondents among the client, contractor and consultant having more than 15 years of experience in handling highway projects in Sindh Province. The collected data was statistically analyzed using SPSS where 8 most significant factors of cost overrun were identified. Qualitatively, the identified eight most significant factors were then incorporated in open ended questionnaire and distributed to 30 selected experts for them to write possible mitigation measures for each of the significant factors. The data was then analyzed through content analysis technique to rank the mitigation measures according to their substantiality. The results of this study would be helpful for construction practitioners to be used as reference in taking up appropriate measures in controlling cost overrun in highways projects in Pakistan.

Evaluating the Effectiveness of Public–Private Partnerships in Highway Development: The Case of Virginia

2018 ◽  
Vol 2672 (4) ◽  
pp. 43-53 ◽  
Author(s):  
Yin Wang ◽  
Zhirong Jerry Zhao
Keyword(s):  
Risk Reduction ◽  
Partner Selection ◽  
Public Private Partnerships ◽  
Risk Allocation ◽  
Cost Overrun ◽  
Efficiency Gains ◽  
Highway Projects ◽  
Public Benefits ◽  
Financial Arrangements

Given the current momentum for public–private partnerships (PPPs), it is critical to review the experiences of PPP highway projects to see whether they succeed in serving public benefits. This article applies a goal-centered approach to evaluate the effectiveness of nine PPP highway projects in the Commonwealth of Virginia, U.S.A., that were implemented and opened to traffic between 1990 and 2016. Virginia has used highway PPPs more for financing or risk reduction than for efficiency gains. The authors examine four elements of contract agreements—PPP type, private partner selection, financial arrangements, and risk allocation—in these Virginian projects, and find that these arrangements have been effective in accessing innovative finance and preventing cost overrun, while the evidence is limited regarding shifting revenue risk or achieving efficiency gains.

scholarly journals Cost Overrun Causative Factors in Road Infrastructure Projects: A Frequency and Importance Analysis

2020 ◽  
Vol 10 (16) ◽  
pp. 5506
Author(s):  
Rodrigo F. Herrera ◽  
Omar Sánchez ◽  
Karen Castañeda ◽  
Hernán Porras
Keyword(s):  
Project Planning ◽  
Cost Overrun ◽  
Infrastructure Projects ◽  
Price Variation ◽  
Cost Overruns ◽  
Road Infrastructure ◽  
Design Changes ◽  
Causative Factors ◽  
Evidence Collection ◽  
Importance Analysis

Road infrastructure projects are essential for a country’s economic and social development. Due to the magnitude, the projects are associated with considerable economic investments that in the case of failure can seriously affect regions’ economies. Despite the importance, roads from different countries are affected by cost overruns, hence, it is essential to identify and analyze the causative factors to focus the search for mitigation solutions. There are several studies focused on the cost factors identification, however, studies are lacking that synthesize and analyze the frequency and importance with which the factors have been reported to obtain a phenomenon overview. Therefore, this paper focuses on analyzing the frequency and importance with which cost overrun factors are reported in road projects. The research method consisted of a systematic review compound of five principal stages: (1) question formulation; (2) searching of relevant documents; (3) document selection; (4) evidence collection, analysis and synthesis; and (5) results’ report. Thirty-eight cost overrun factors were identified and classified into 14 categories. According to the Influence Index, the five most important and frequent cost overrun factors were: (1) failures in design, (2) price variation of materials, (3) inadequate project planning, (4) project scope changes, and (5) design changes.

Latent geotechnical pathogens inducing cost overruns in highway projects

2017 ◽  
Vol 22 (3) ◽  
pp. 269-285 ◽  
Author(s):  
Alolote Ibim Amadi ◽  
Anthony Higham
Keyword(s):  
Niger Delta ◽  
Best Practice ◽  
Methodological Approach ◽  
Cost Overrun ◽  
Delta Region ◽  
Cost Overruns ◽  
Highway Projects ◽  
Content Type ◽  
Niger Delta Region ◽  
Geotechnical Risk

Purpose This paper aims to investigate the statistical validity of geotechnical risk factors in accounting for cost overruns in highway projects. The study hypothesises that “latent pathogens” because of mismanaged geotechnical risk, which lay dormant in organisational practices of highway agencies, trigger cost overruns. Design/methodology/approach To test this hypothesis, cost and geotechnical data gathered for 61 completed highway projects, executed in the Niger Delta, recording unusually high cost overruns, along with qualitative data from 16 interviews with the project commissioners, were comprehensively analysed via regression modelling, to statistically explain recorded cost variance. Findings The results provide empirical evidence supporting a cause–effect relationship between the extent of cost overrun and key geotechnical factors. It is suggested that positive changes made in the geotechnical practices of the highway agencies will produce an expected exponential decrease in the level of cost overruns recorded in highway projects. Research limitations/implications The study is limited to explaining the propagation of unusually high cost overruns in the geologic setting of the Niger Delta region of Nigeria. As such there is a need to test the generalisability of the theory presented. Practical implications The emergent view of geotechnical practice calls for further research, necessary to align geotechnical best practice into highway project delivery in the Niger Delta region. Originality/value The study used a robust methodological approach to understanding the propagation of cost overruns in highway projects, based on a characterisation of geotechnical intricacies, which is unprecedented in cost overrun research.

scholarly journals Time and Cost Overrun Analysis in PPP Based Roads and Highway Projects in India

2020 ◽  
Vol 9 (4) ◽  
pp. 1761-1768
Keyword(s):  
Economic Development ◽  
Public Private Partnership ◽  
Cost Overrun ◽  
Construction Process ◽  
Highway Projects ◽  
Private Partnership ◽  
Degree Of Risk ◽  
The Government ◽  
The Impact

The economic development of any country depends upon infrastructure of roads and highways but its construction, process and maintenance of roads and highways is not as simple as it seems like as growth of roads and highway projects involves massive capital and time. Nevertheless, the government does not have the resources required for the resolution. Public private partnership (PPP) is the resolution of this problem however, roads and highway projects comprises higher degree of risk for the private players which demoralizes private parties from capitalizing in highway projects. This paper discovers the prevailing literature on risks involved in roads and highway projects and sources of time and cost overrun in roads and highway projects for the purpose of analysis of major risks which effects in time and cost overrun in PPP built roads and highway projects. This paper also defines the impact of recognized risks over and done with questioner survey.

scholarly journals REWORK IN HIGHWAY PROJECTS

2014 ◽  
Vol 20 (4) ◽  
pp. 445-465 ◽  
Author(s):  
Nuria Forcada ◽  
Gerard Rusiñol ◽  
Marcel MacArulla ◽  
Peter E. D. Love
Keyword(s):  
Cost Overrun ◽  
Significant Cost ◽  
Project Organization ◽  
Skill Levels ◽  
Highway Projects ◽  
Process Improvements ◽  
Systemic Model ◽  
High Degree ◽  
Systematic Knowledge

There is limited systematic knowledge available about the dynamics of rework in highway projects, despite the fact that they frequently exceed budget and schedule by more than 10%. A case study of a Spanish highway project, which experienced a significant cost overrun as a result of rework, is examined and the causal factors that contributed to its occurrence are determined. Through observation and subsequent analysis of interviews and documentation a high degree of interdependency existed between perceived causes of rework. This resulted in the nomenclature of Project, Organization and People to be adopted and used to develop the rework generic systemic model. Scope changes, high complexity, poor skill levels and unexpected underground services were found to be the most significant causes of rework. The developed model provides managers with insights about the interdependencies and behaviour between key influencing variables in highway projects and can be used to stimulate learning and process improvements in future highway projects.

scholarly journals CHOOSING AN APPROPRIATE CONTINGENCY SUM ESTIMATING METHODS FOR HIGHWAY CONSTRUCTION PROJECTS IN NIGERIA: A LITERATURE REVIEW

2017 ◽  
Vol 15 (1) ◽  
Author(s):  
Razali Abdul Hamid ◽  
Fabi Jonathan Kehinde
Keyword(s):  
Literature Review ◽  
Construction Projects ◽  
Health And Safety ◽  
Main Function ◽  
Cost Overrun ◽  
Highway Projects ◽  
Building Projects ◽  
Quality Health ◽  
Single Method ◽  
Project Objectives

In order to establish a gap to be filled in a particular field, there is a need to gather information that allows the researcher to identify and analyse the current state of researches on the topic. Contingency sum estimation for projects plays an important role for inclusion for risk taken by the contractor on the bid amount. This is good in order to meet project objectives (cost, time, quality, health and safety, and environment). The main function of contingency sum is to cater forvariations that arise during the construction phase of projects. The aim of the study is to identifying and examine the various methods for estimating contingency sum for projects with a view to propose an appropriate method which will be suitable for a specific project in order to increase accuracy and reduce cost overrun. A literature review of selected papers (journals, conference proceedings and theses) on contingency estimation was carried out. The major findings from this study is that most studies were carried out on building projects while few were carried out on highway projects. From the analysis carried out, no single method of estimating has been effective for all types of projects. These methods of estimating contingency sums have developed over the years as a result of shortcomings of one method after the other. It is therefore recommended that peculiarity of each project, ease of using each of the methods and accuracy of the estimates needed should be the basis of choosing method of estimating contingency sum.

CHOOSING AN APPROPRIATE CONTINGENCY SUM ESTIMATING METHODS FOR HIGHWAY CONSTRUCTION PROJECTS IN NIGERIA: A LITERATURE REVIEW

2017 ◽  
Vol 15 ◽  
Author(s):  
Razali Abdul Hamid ◽  
Fabi Jonathan Kehinde
Keyword(s):  
Literature Review ◽  
Construction Projects ◽  
Health And Safety ◽  
Main Function ◽  
Cost Overrun ◽  
Highway Projects ◽  
Building Projects ◽  
Quality Health ◽  
Single Method ◽  
Project Objectives

In order to establish a gap to be filled in a particular field, there is a need to gather information that allows the researcher to identify and analyse the current state of researches on the topic. Contingency sum estimation for projects plays an important role for inclusion for risk taken by the contractor on the bid amount. This is good in order to meet project objectives (cost, time, quality, health and safety, and environment). The main function of contingency sum is to cater forvariations that arise during the construction phase of projects. The aim of the study is to identifying and examine the various methods for estimating contingency sum for projects with a view to propose an appropriate method which will be suitable for a specific project in order to increase accuracy and reduce cost overrun. A literature review of selected papers (journals, conference proceedings and theses) on contingency estimation was carried out. The major findings from this study is that most studies were carried out on building projects while few were carried out on highway projects. From the analysis carried out, no single method of estimating has been effective for all types of projects. These methods of estimating contingency sums have developed over the years as a result of shortcomings of one method after the other. It is therefore recommended that peculiarity of each project, ease of using each of the methods and accuracy of the estimates needed should be the basis of choosing method of estimating contingency sum.

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