Modeling cost overrun in building construction projects using the interpretive structural modeling approach: a developing country perspective

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shahab Shoar ◽  
Tak Wing Yiu ◽  
Shamsi Payan ◽  
Majid Parchamijalal
Keyword(s):  
Construction Projects ◽  
Nominal Group Technique ◽  
Structural Modeling ◽  
Building Construction ◽  
Nominal Group ◽  
Clear Understanding ◽  
Cost Overrun ◽  
Interpretive Structural Modeling ◽  
Cost Overruns ◽  
Content Type

PurposeAlthough several studies have been conducted on the causes of cost overrun, they have mainly assumed that the causes of cost overrun are independent of each other, and few of them scrutinized the complex interrelationships between the causes. To fill the gap, this study aims to investigate the mutual interactions between the causes of cost overrun using interpretive structural modeling (ISM) and proposing strategies to tackle the causes considering their interactions.Design/methodology/approachCritical causes of cost overrun were identified through a comprehensive literature review. In total, 22 key causes are then refined based on the opinions of relevant experts involved in the Iranian building and construction sector. Using the nominal group technique, the causes' interactions were examined and represented via the ISM diagram. The causes were also classified using “matrix cross-reference multiplication applied to a classification (MICMAC)” technique.FindingsThe results showed that price fluctuation, claims, execution delay, delay in payment and change order positioned at the highest level of the obtained model can directly result in cost overrun, and corruption and poor contract management located at the base of the model are two major root causes of cost overruns. It was also concluded that more attention should be paid to the precontract phase of the project to address and prevent corruption and managerial issues deeply rooted in this stage.Originality/valueThe findings of this study provide a clear understanding of how different causes of cost overrun are related to each other and can ultimately assist project managers of different parties in choosing strategies to mitigate cost overrun in building construction projects.

scholarly journals Exploring the Causes of Design Changes in Building Construction Projects: An Interpretive Structural Modeling Approach

2021 ◽  
Vol 13 (17) ◽  
pp. 9578
Author(s):  
Shahab Shoar ◽  
Nicholas Chileshe
Keyword(s):  
Construction Projects ◽  
Structural Modeling ◽  
Project Managers ◽  
Building Construction ◽  
Value Engineering ◽  
Interpretive Structural Modeling ◽  
Change Orders ◽  
Construction Methods ◽  
Design Changes ◽  
New Construction

The purpose of this study is to investigate the mutual interactions between the causes of design changes using Interpretive Structural Modeling (ISM) and to classify the causes using the “Matrice d’Impacts Croisés Multiplication Appliquée à un Classement” MICMAC technique. This study further identifies and proposes strategies to mitigate design change occurrence and map them onto the identified connections between the causes. To achieve these goals, critical causes of design changes were identified through a comprehensive literature review; 23 key causes were then refined according to the opinions of relevant experts involved in the Iranian building construction sector. Stakeholders associated with each cause and the management areas from which causes arise were also considered. The factors “Unfamiliarity with new construction methods”, “Design errors”, “Value engineering”, “Scope uncertainty”, “Change orders”, and “Constructability ignored in the design phase”, which are highly influenced by other factors, emerged at the highest level of the ISM diagram, and “Clients’ attitudes and experience” as the main root cause of design changes at the bottom of the diagram. The MICMAC technique results showed that consultant-related causes significantly influence other causes, and policy and client-related causes have a feedback effect on the whole system. The findings of this study provide a better insight into how various causes of design changes are connected to one another and can ultimately assist project managers of different parties, even in other countries, to choose influential strategies to mitigate design changes in building construction projects.

scholarly journals Cost overruns of public sector construction projects: a developing country perspective

2019 ◽  
Vol 13 (1) ◽  
pp. 66-84 ◽  
Author(s):  
Richard Ohene Asiedu ◽  
Ebenezer Adaku
Keyword(s):  
Public Sector ◽  
Construction Projects ◽  
Public Procurement ◽  
Construction Project ◽  
Cost Overrun ◽  
Project Cost ◽  
Cost Overruns ◽  
Content Type ◽  
Interview Session ◽  
Construction Project Cost

Purpose Cost overrun of construction projects has been a key concern for all stakeholders of projects for many decades now. Many studies have been done in the past and continue to be done currently to understand the underlying causes of construction project cost overruns. However, the empirical evidence of the causes seem not be clear due to the silo approach in understanding the causes of construction project cost overruns. The purpose of this paper is to take the debate a step forward by providing an understanding of the causes of project cost overrun from a system’s perspective, especially from a less researched environment. Design/methodology/approach Data were collected and analysed from 131 respondents who were mainly involved in construction works in public procurement entities in Ghana. A two-staged approach was employed in collecting data from the respondents. The first stage involved an interview session with key informants in the construction industry in Ghana to ascertain the detailed causes of cost overrun of construction projects. The second stage focussed on the validation of these detailed factors by a wider stakeholder group through questionnaires. Factor analysis was employed to consolidate these detailed factors into major causes of construction project cost overruns. Findings The results show that there are primarily four major causes of most public sector construction projects cost overruns. These four major causes of cost overruns are poor contract planning and supervision; change orders; weak institutional and economic environment of projects and lack of effective coordination among the contracting parties. Originality/value The study provides more insights as to the critical and major factors that underpin public sector construction projects cost overruns and more importantly provides a basis for common treatment of the multiple risk factors engendering public sector construction projects cost overruns.

A system dynamics approach to conceptualise causes of cost overrun of construction projects in developing countries

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Richard Ohene Asiedu ◽  
Collins Ameyaw
Keyword(s):  
Developing Countries ◽  
System Dynamics ◽  
Construction Projects ◽  
Mitigation Measures ◽  
Conceptual System ◽  
Cost Overrun ◽  
Interactive Approach ◽  
Cost Overruns ◽  
Content Type ◽  
Using Data

PurposeThis study aimed at developing and empirically testing a system dynamics causal loop (SDCL) model for investigating factors related to the risk of cost overruns, associated with the performance of construction projects in developing countries.Design/methodology/approachUsing data derived from the Ghanaian construction industry (GCI), a conceptual system dynamics model was hypothesised and empirically tested.FindingsSupported by empirical evidence, the study established that the low technical capacity of consultants is the underlying cause of cost overruns in government projects. There is a strong proof of the relationship between the results of the SDCL model and poor contract planning and supervision, change orders, competence of the project team and the lack of effective coordination amongst the contractual parties.Practical implicationsThe final SDCL model has revealed key risk components that would require standard mitigation measures in order to achieve “acceptable success” in construction projects.Originality/valueThe study presents an interactive approach for construction practitioners in developing countries to prioritise the causes of cost overruns in order to initiate quick responses.

Major causes of construction time and cost overruns

2017 ◽  
Vol 15 (2) ◽  
pp. 181-198 ◽  
Author(s):  
Samuel Famiyeh ◽  
Charles Teye Amoatey ◽  
Ebenezer Adaku ◽  
Collins Sena Agbenohevi
Keyword(s):  
Interest Rates ◽  
Financial Management ◽  
Construction Projects ◽  
Cost Overrun ◽  
Construction Sector ◽  
Construction Time ◽  
Government School ◽  
Cost Overruns ◽  
Content Type ◽  
Factors Affecting

Purpose In Ghana, the duration of construction projects from inception to completion is becoming a great concern, recently, especially among clients and beneficiaries, because of the rising interest rates, inflation, development plan targets, among other factors. Hence the need to understand the causes of delays and cost overrun in the construction sector has become more important than ever. This study therefore aims to identify the major factors underlying time and cost overruns in projects related to the education sector in Ghana to proffer practical solutions in addressing them. Design/methodology/approach The study conducted a survey among clients’ consultants and representatives of the contractors working on about 60 government school projects. A relative importance index was used to determine the relative effects of the factors causing construction time and cost overruns. Findings The key factors causing construction time overrun were: financial problems, unrealistic contract durations imposed by clients, poorly defined project scope, client-initiated variations, under-estimation of project cost by consultants, poor inspection/supervision of projects by consultants. Other factors were underestimation of project complexity by contractors, poor site management, inappropriate construction methods used by contractors and delays in the issuance of permits by government agencies. Factors affecting cost overruns were financial difficulty by client, delays in payments of completed works, variations in designs, lack of communications plans, poor feasibility and project analysis, poor financial management on site and material price fluctuations. Research limitations/implications The research was limited to only the educational sector projects. Practical implications Practically, this study highlights for the construction sector the critical factors causing project time and cost overruns in Ghana. Identification of these factors provides the basis for pragmatic solutions to enhance the chances of project success. Social implications The identification and solutions to project time and cost overruns, especially for educational sector projects, contribute toward making public goods more affordable and accessible to most citizens, particularly in developing countries. Originality/value This study contributes to the debate on factors causing project time and cost overruns in the construction sector especially from a developing country’s perspective.

scholarly journals Analysis of Cost Overrun and Schedule Delays of Infrastructure Projects in Low Income Economies: Case Studies in Ethiopia

2021 ◽  
Vol 2021 ◽  
pp. 1-15
Author(s):  
Solomon Melaku Belay ◽  
Seifu Tilahun ◽  
Mitiku Yehualaw ◽  
Jose Matos ◽  
Helder Sousa ◽  
...  
Keyword(s):  
Low Income ◽  
Average Cost ◽  
Construction Projects ◽  
Building Construction ◽  
Cost Overrun ◽  
Infrastructure Projects ◽  
Cost Overruns ◽  
Road Infrastructure ◽  
Schedule Delay ◽  
Maximum Delay

Today, several developing countries struggle to improve the cost and time performances of major infrastructure works due to various reasons. Cost overrun and delay are one of the major challenges being faced by the construction and infrastructure sector. Hence, the aim of this study is to explore the extent of cost overrun and schedule delays in building and road infrastructure projects across the Ethiopian construction industry. Primary data were collected through a structured questionnaire survey to evaluate the potential risks leading to those challenges. Various data analysis tools were employed, to investigate the critical causes of cost overrun and delays in infrastructure projects. The findings reveal that the minimum cost overrun for building construction projects is found to be 2%, whereas the maximum and average cost overruns are 248% and 35%, respectively. For road infrastructure projects, the minimum, maximum, and average cost overruns are found to be 1%, 61%, and 18%, respectively. Similarly, the minimum, maximum, and average delays recorded in building construction projects are 9%, 802%, and 143%, respectively, whereas, in road infrastructure projects, the minimum delay is found to be 3%, the maximum delay is 312%, and an average schedule delay of 110% is recorded. In addition, the top risk factors leading to cost overrun in infrastructure projects are inflation, inaccurate cost estimates, and variations, whereas the major risks causing schedule delays are variations, economic conditions, and escalation of material prices. Further, practical implications and key recommendations were provided to curb cost overrun and delay in infrastructure projects.

A qualitative system dynamics approach to modeling the causes and effects of design deficiencies in construction projects

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Shahab Shoar ◽  
Shamsi Payan
Keyword(s):  
System Dynamics ◽  
Construction Projects ◽  
Poor Quality ◽  
Design Management ◽  
Clear Understanding ◽  
Cost Overrun ◽  
Design Quality ◽  
Content Type ◽  
Qualitative System Dynamics ◽  
Design Deficiencies

Purpose Poor quality of design documents and Design Deficiencies (DDs) are critical factors that can potentially cause time and cost overrun and lead to project failure. Despite the importance of this issue, few studies have been conducted to explore the underlying relations among the causes and effects of DDs, and it is not clear how they exert influence on each other. However, it is imperative to have a clear understanding of their interrelationships so as to devise intervention strategies. The purpose of this study is, therefore, to explore these causes and effects. Design/methodology/approach To this aim, a qualitative system dynamics model was provided to visualize how various factors interact with one another. The model was developed and validated by drawing on the expertise of industry-related experts. The key causes and effects of the DDs were identified through the investigation of the model. Findings It was concluded that design management of project and the composition of design teams are critical. The obtained results also showed that more attention should be paid to the enhancement of knowledge circulation and communication within design firms and increasing the awareness of managers and owners from the technical consequences of their managerial decisions. Research limitations/implications It is worth mentioning that the design process could be deeply affected by the quality, frequency and strength of relationships among the project’s parties. Early involvement of contractors, for example, can significantly contribute to enhancing design quality. This study investigates factors’ interactions in projects delivered using the traditional design-bid-build method. As relationships between the project’s parties could be different in various project delivery methods, further research is indeed needed to assess factors’ interactions in projects delivered using other methods. Originality/value It is believed that the proposed model by providing a better insight into the connections of causes and effects could aid project managers of different parties with planning the strategies to reduce DDs and mitigate their effects.

Productivity monitoring in building construction projects: a systematic review

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Wesam Salah Alaloul ◽  
Khalid M. Alzubi ◽  
Ahmad B. Malkawi ◽  
Marsail Al Salaheen ◽  
Muhammad Ali Musarat
Keyword(s):  
Systematic Review ◽  
Construction Projects ◽  
Small Sample ◽  
Machine Learning Algorithms ◽  
Building Construction ◽  
Content Type ◽  
Construction Productivity ◽  
Automated Monitoring ◽  
Monitoring Tools ◽  
Meta Analyses

PurposeThe unique nature of the construction sector makes it fall behind other sectors in terms of productivity. Monitoring construction productivity is crucial for the construction project's success. Current practices for construction productivity monitoring are time-consuming, manned and error prone. Although previous studies have been implemented toward reducing these limitations, a gap still exists in the automated monitoring of construction productivity.Design/methodology/approachThis study aims to investigate and assess the different techniques used for monitoring productivity in building construction projects. Therefore, a mixed review methodology (bibliometric analysis and systematic review) was adopted. All the related publications were collected from different databases, which were further screened to get the most relevant based on the Preferred Reporting Items for Systematic Review and Meta-Analyses (PRISMA) criteria.FindingsA detailed review was performed, and it was found that traditional methods, computer vision-based and photogrammetry are the most adopted data acquisition for productivity monitoring of building projects, respectively. Machine learning algorithms (ANN, SVM) and BIM were integrated with monitoring tools and technologies to enhance the automated monitoring performance in construction productivity. Also, it was observed that current studies did not cover all the complex construction job sites and they were applied based on a small sample of construction workers and machines separately.Originality/valueThis review paper contributes to the literature on construction management by providing insight into different productivity monitoring techniques.

Analysis of interaction among the barriers to 5S implementation using interpretive structural modeling approach

2017 ◽  
Vol 24 (7) ◽  
pp. 1834-1853 ◽  
Author(s):  
Rajesh Attri ◽  
Bhupender Singh ◽  
Sunil Mehra
Keyword(s):  
Structural Equation ◽  
Structural Model ◽  
Structural Modeling ◽  
Equation Modeling ◽  
Successful Implementation ◽  
Interpretive Structural Modeling ◽  
Content Type ◽  
Modeling Approach ◽  
Manufacturing Organizations ◽  
Top Management Commitment

Purpose The purpose of this paper is to ascertain and analyze the interactions among different barriers of 5S implementation in manufacturing organizations. Design/methodology/approach In this paper, 15 barriers affecting the implementation of 5S in manufacturing organizations have been identified from literature analysis and discussion with academic and industrial experts. Afterwards, identified barriers were validated by using nation-wide questionnaire-based survey. Then, interpretive structural modeling (ISM) approach has been utilized to find out the interaction among the identified barriers in order to develop hierarchy-based model. Findings The research identifies several key barriers which have high driving power and weak dependence power. In this concern, these barriers entail extreme care and handling for successful implementation of 5S. Financial constraints, lack of top management commitment, and no proper vision and mission are found to be the key barriers. Research limitations/implications The developed ISM model is based on experts’ opinion. This developed hierarchy-based model requires further validation by using structural equation modeling approach or by performing detailed case studies. Originality/value In this paper, ISM-based structural model has been recommended for Indian manufacturing organizations, which is a novel exertion in the area of 5S implementation.

Factors affecting strategic plan implementation using interpretive structural modeling (ISM)

2018 ◽  
Vol 31 (5) ◽  
pp. 406-414 ◽  
Author(s):  
Mohammadkarim Bahadori ◽  
Ehsan Teymourzadeh ◽  
Hamidreza Tajik ◽  
Ramin Ravangard ◽  
Mehdi Raadabadi ◽  
...  
Keyword(s):  
Strategic Planning ◽  
Planning Process ◽  
Strategic Plan ◽  
Structural Modeling ◽  
Interpretive Structural Modeling ◽  
Plan Implementation ◽  
Content Type ◽  
Factors Affecting ◽  
Strategic Planning Process ◽  
The Relationship

PurposeStrategic planning is the best tool for managers seeking an informed presence and participation in the market without surrendering to changes. Strategic planning enables managers to achieve their organizational goals and objectives. Hospital goals, such as improving service quality and increasing patient satisfaction cannot be achieved if agreed strategies are not implemented. The purpose of this paper is to investigate the factors affecting strategic plan implementation in one teaching hospital using interpretive structural modeling (ISM).Design/methodology/approachThe authors used a descriptive study involving experts and senior managers; 16 were selected as the study sample using a purposive sampling method. Data were collected using a questionnaire designed and prepared based on previous studies. Data were analyzed using ISM.FindingsFive main factors affected strategic plan implementation. Although all five variables and factors are top level, “senior manager awareness and participation in the strategic planning process” and “creating and maintaining team participation in the strategic planning process” had maximum drive power. “Organizational structure effects on the strategic planning process” and “Organizational culture effects on the strategic planning process” had maximum dependence power.Practical implicationsIdentifying factors affecting strategic plan implementation is a basis for healthcare quality improvement by analyzing the relationship among factors and overcoming the barriers.Originality/valueThe authors used ISM to analyze the relationship between factors affecting strategic plan implementation.

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