Analysis of causes and impact of variation order on educational building projects

2016 ◽  
Vol 14 (2) ◽  
pp. 139-164 ◽  
Author(s):  
Luqman Oyekunle Oyewobi ◽  
Richard Jimoh ◽  
Bashir Olanrewaju Ganiyu ◽  
Abdullateef Adewale Shittu

Purpose Construction process is complex and traditionally fragmented; thus, it is almost impossible to have a project completed without changes to the original plan or the construction process. The purpose of this study is to identify and examine the causes of variation orders, ascertain their effects and establish the cost and time performance implication as a result of variation orders. Design/methodology/approach This study obtained information from 90 construction stakeholders on 30 completed educational building projects to ascertain the causes and effects of variation orders on project delivery using questionnaire survey. In addition to this, a pro forma document was designed to obtain the project characteristics, cost and time data from these 30 completed educational building projects. Factor analysis was used to categorise the causes of variation orders, while severity index was used to examine their effects on project delivery. The hypothesised statement was tested using paired t-statistics to examine whether a statistically significant difference existed between variation orders, cost and time performance of the projects. Findings The study identified 13 main factors as causes of variation orders and the results revealed that the most frequent effects of variations were increase in construction costs, time, client dissatisfaction, increase construction project rework and demolition and project abandonment. The results also showed that variation orders had significant effects on both cost and scheduled performance of the educational building projects with average cost and time escalation of 33.95 and 29.45 per cent of the original project cost and time, respectively, for the entire projects studied, while average cost implication of variation orders is 23.79 per cent. Practical implications The findings in this study will be of assistance to government agencies and management of public works in higher institutions of learning in managing variations in construction projects. The study will also add to the current literature on the impact of variation orders on educational building projects in developing countries. Finally, it will create the much-needed awareness on the severity and implication of change or variation orders on project delivery. Originality/value The study identified and examined the causes of variation orders, ascertained their effects and established the cost and time effects of the causes of variation order on project performance. This will assist project initiators, contractors, consultants and other stakeholders to fully appreciate and understand the significant effects of variation orders on project performance.

2019 ◽  
Vol 5 (1) ◽  
pp. 29-34
Author(s):  
Ayu Herzanita

WBS (Work Breakdown Structure) plays an important role in every construction project. WBS is a hierarchy of decreasing scope of work to become the smallest level called a work package, making it easier in the process of project management and control. The current problem is that many contractors in Indonesia, both large and small contractors, do not understand the importance of using WBS in a construction project. This causes project performance to be less than optimal, especially on cost and time performance. Currently, WBS standards have been developed for building projects. In this study will look at the cost and time performance of the project from the use of WBS standard building. The sample used in this study are projects that have applied the use of project standards. The projects include Building X, Lecture Building Y, and Sports Facility Building Z. The method used in this study is the EVM (Earn Value Method) approach, collecting data using questionnaires. The results showed that using the WBS standard had an effect on cost and time performance. Good cost and time performance is shown in the Building X and Lecture Y buildings. While the cost and time performance of the Z Sports Facility Building tends to be unstable. This is because the work items that exist in the WBS standard are not in accordance with the project conditions, so it is necessary to adjust work items.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Simon Adamtey

Purpose The purpose of this paper is to investigate and determine the time and cost performance of progressive design-build (PDB) projects compared with that of design-build (DB) projects. The objective is to provide empirical evidence on the performance of PDB delivery method. Design/methodology/approach A quantitative research approach was used by analyzing time and cost data collected on 75 PDB and 92 DB projects from the database of Design-Build Institute of America. One-way analysis of variance was used to determine statistical difference in time and cost performance between PDB and DB. Findings PDB projects have a comparatively better time performance than cost performance. When compared with DB projects, there was a statistically significant difference in time overrun with PDB performing better than DB (0.41 vs 8.0%). Additionally, about 80% of PDB projects had shorter or as scheduled duration compared to 74% for DB. There was no statistically significant difference of cost performance between PDB and DB. Research limitations/implications The main limitation is the sample size of 72 PDB projects. It is recommended that further research should be conducted using a larger sample size to confirm the findings of this study. Practical implications PDB will be more beneficial for projects with sensitive deadlines. For an owner deciding between PDB and DB, the advantage of using PDB is in its time performance, which may lead to the project being completed on or ahead of time. As such, PDB can serve as another “tool in the toolbox” for owners to help in reducing construction delays. Originality/value This paper is the first attempt to provide an empirical evidence of the cost and time performance of PDB based on analyzing multiple projects. Owners will be better informed when selecting PDB for their projects.


2017 ◽  
Vol 15 (5) ◽  
pp. 619-634 ◽  
Author(s):  
Nathaniel Ayinde Olatunde ◽  
Oluwaseyi Olalekan Alao

Purpose The purpose of this paper is to compare the cost and time performance of construction projects in public and private universities in Osun State, Nigeria. Design/methodology/approach Purposive sampling technique was adopted to select four universities (two public and two private) used for the study. Archival data on 40 completed construction projects (ten from each university) was used in the study. Data were analysed with percentile and t-test. Findings The study showed that only 35 per cent of the construction projects in public and 10 per cent of those in private universities were completed at the estimated cost. There were no construction projects completed within the planned time in public universities, but 20 per cent were completed within the planned time in private universities. The t-test showed there is no significant difference in performance of construction projects in public and private universities in Nigeria. The study concluded that time performance of public and private universities in Nigeria was still below acceptable international best practices. Research limitations/implications The findings of this study are limited to universities’ construction projects and may be of little application to other construction projects outside university settings. Practical implications It is recommended that construction stakeholders be more proactive in ensuring that significant improvement is achieved in cost and time performance of construction projects both in public and private universities; the clients need to be more detailed in their briefs and requirements, the designers (architects and engineers) need to be more precise and avoid varying their designs, the quantity surveyors should use their professional competency in cost engineering adequately and the contractor should avoid spurious claims that result in increase in construction cost and time so that performance of construction projects can be improved. Originality/value The study is an attempt to compare cost and time performance of construction projects in public and private universities in Osun State, Nigeria.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nathaniel Ayinde Olatunde ◽  
Imoleayo Abraham Awodele ◽  
Henry Agboola Odeyinka

PurposeThe purpose of the study is to examine the stakeholder identification (SI) methods used in building projects procured by private corporate organisations in Southwestern Nigeria to draw a correlation between methods used for SI and project performance in the study area, thereby enhancing project performance.Design/methodology/approachThe study used a census survey to purposively select 30 projects managers (who indicated from a first-stage questionnaire) that they have participated in structured stakeholder management (SM) from a list of 106 project managers and client representatives who have been involved in SM of building projects procured by private corporate organisations between 2008 and 2017 in the study area. A second-stage questionnaire was designed to elicit information from the respondents. The quantitative data that were collected were analysed using mean score (MS) analysis and Analysis of variance (ANOVA).FindingsThe study found that brainstorming in group meetings (MS = 4.33), interviews with the expert (MS = 3.20) and identification by other stakeholders (MS = 3.00) are the most frequently used SI methods in the study area. It was also found that the use of a questionnaire (MS = 0.87), Delphi method (MS = 0.80) and public hearing (MS = 0.57) was rare for SI in the study area. A further result showed that there was no significant difference in the opinion of project managers on 85% of methods used for SI in the study area irrespective of the procurement method employed.Practical implicationsThe study examined the methods project managers used for SI on building projects procured by private corporate organisations to advocate for more robust and all-inclusive SI methods.Originality/valueThe study empirically examined methods used for SI and correlated them to project performance.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nathaniel Ayinde Olatunde

PurposeAdvocates of structured stakeholder management (SM) processes have emphasized the use of the appropriate strategies as the most important process in SM. Yet, research effort in this regard in developing countries has been inadequate. The purpose of the study was to examine the SM strategies used on building projects procured by private corporate organisations in south-western Nigeria to enhance project performance.Design/methodology/approachThe study used a census survey to select 30 projects managers who indicated (from 106 who responded to a first stage questionnaire) that they have participated in structured SM in the study area between 2008 and 2017. A second-stage questionnaire was designed to elicit information from the respondents. Data analysis was done with the use of frequency, percentile and mean score (MS) and analysis of variance (ANOVA).FindingsStakeholders with high power and high interest were managed with the use of “collaborate/partner” strategy (MS = 3.86), stakeholders with high power and low interest were “kept satisfied” (MS = 4.09), stakeholders with low power and high interest were managed by using “keep them informed regularly” strategy (MS = 4.10) and stakeholders with low power and low interest were managed using “monitor and respond when necessary” strategy (M = 3.94). Further results show that static stakeholders with high power were managed by using the “monitor constantly” strategy (MS = 4.11), stakeholders with high power, high legitimacy and high urgency were managed by adopting the “keep satisfied” strategy (MS = 4.26), to manage non-supportive stakeholders, project managers adopted the “keep satisfied” strategy (MS = 4.18) and supportive stakeholders were managed by using “involved” strategy (MS = 4.02). More results showed that there is no significant difference in the opinion of project managers on SM strategies employed irrespective of procurement method.Practical implicationsThe study provided a guide to project managers on the appropriate SM strategies to use for future projects.Originality/valueThe study was an attempt to appraise the SM strategies in relation to the procurement methods and their relationship with project performance.


Author(s):  
Douglas Omoregie Aghimien ◽  
Olufemi Osanyinro ◽  
Taiwo Fadeke Adegbembo

AbstractProcurement method over time has proven to have significant influence on the successful delivery of construction projects. Making the right decision in the selection of a procurement option to adopt is therefore crucial if a project is to succeed. This study therefore assessed the cost and time performance of selected public building projects procured using traditional, direct labour and management procurement options in Ondo State, Nigeria. A pro forma was used to gather cost and time data from government procuring entities in the state. In addition, a structured questionnaire was used to obtain information from construction professionals in these procuring entities, in order to ascertain the factors influencing the choice of procurement options adopted. The cost and time data gathered were analyzed using percentages and the paired-samples t-test, while those gathered on the factors influencing the choice of procurement options were analyzed using mean item scores and analysis of variance (ANOVA). The results revealed that although there is no significant difference between the initial and final costs of the assessed projects, some measure of cost overrun still exists. In addition, a considerable amount of time overrun was experienced on projects executed using the three different procurement options. The most significant factors influencing the choice of a procurement option are price competition, speed, time certainty and complexity of the project. It is believed that the findings of this study will provide public procuring entities with insight on the cost and time capability of these procurement methods and aid them in selecting the procurement option that will help in delivering public building projects within the budget and on schedule.


2017 ◽  
Vol 6 (3) ◽  
pp. 385-395
Author(s):  
Richard Cebula ◽  
James E. Payne ◽  
Donnie Horner ◽  
Robert Boylan

Purpose The purpose of this paper is to examine the impact of labor market freedom on state-level cost of living differentials in the USA using cross-sectional data for 2016 after allowing for the impacts of economic and quality of life factors. Design/methodology/approach The study uses two-stage least squares estimation controlling for factors contributing to cost of living differences across states. Findings The results reveal that an increase in labor market freedom reduces the overall cost of living. Research limitations/implications The study can be extended using panel data and alternative measures of labor market freedom. Practical implications In general, the finding that less intrusive government and greater labor freedom are associated with a reduced cost of living should not be surprising. This is because less government intrusion and greater labor freedom both inherently allow markets to be more efficient in the rationalization of and interplay with forces of supply and demand. Social implications The findings of this and future related studies could prove very useful to policy makers and entrepreneurs, as well as small business owners and public corporations of all sizes – particularly those considering either location in, relocation to, or expansion into other markets within the USA. Furthermore, the potential benefits of the National Right-to-Work Law currently under consideration in Congress could add cost of living reductions to the debate. Originality/value The authors extend the literature on cost of living differentials by investigating whether higher amounts of state-level labor market freedom act to reduce the states’ cost of living using the most recent annual data available (2016). That labor freedom has a systemic efficiency impact on the state-level cost of living is a significant finding. In our opinion, it is likely that labor market freedom is increasing the efficiency of labor market transactions in the production and distribution of goods and services, and acts to reduce the cost of living in states. In addition, unlike previous related studies, the authors investigate the impact of not only overall labor market freedom on the state-level cost of living, but also how the three sub-indices of labor market freedom, as identified and measured by Stansel et al. (2014, 2015), impact the cost of living state by state.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  

Purpose The authors assumed PSM would be higher in the public sector, but they set up a trial to find out if this was the case. Design/methodology/approach To test their theories, the authors conducted two independent surveys. The first consisted of 220 usable responses from public sector employees in Changsha, China. The second survey involved 260 usable responses from private sector employees taking an MBA course at a university in the Changsha district. A questionnaire was used to assess attitudes. Findings The results found no significant difference between the impact of public sector motivation (PSM) on employee performance across the public and private sectors. The data showed that PSM had a significant impact on self-reported employee performance, but the relationship did not differ much between sectors. Meanwhile, it was in the private sector that PSM had the greatest impact on intention to leave. Originality/value The authors said the research project was one of the first to test if the concept of PSM operated in the same way across sectors. It also contributed, they said, to the ongoing debate about PSM in China.


2021 ◽  
Vol 11 (2) ◽  
pp. 350-368
Author(s):  
Tirivavi Moyo ◽  
Gerrit Crafford ◽  
Fidelis Emuze

PurposeWhile operational factors reduce construction workers' productivity in Zimbabwe, the impact of the people-centred management aspects has not been empirically interrogated as a remedy. This article reports on a study that sought to determine significant people-centred management aspects that lead to improved labour productivity and assesses the existence of statistically significant differences due to the demographic variables of respondents. Demographic-specific strategies that enhance construction “workers” productivity were revealed.Design/methodology/approachThe survey research design using a self-administered questionnaire was deployed to collect the primary data. The design followed a positivist paradigm to evaluate objectively how people-centred management affects construction workers' productivity. The statistical data were descriptively and inferentially analysed.FindingsPeople-centred management was determined to be significant in improving construction workers' productivity, with the most significant aspect being the building of employee confidence in related approaches. Designations and educational levels mostly indicated a statistically significant difference in several aspects that included the adoption of a functional reward culture for workers and training on people-centred principles. Training on-site management and construction workers in people-centred management and its application are crucial to improving construction workers' productivity.Research limitations/implicationsConstruction companies should drastically improve their concern for people while they sustain a high concern for production within their construction sites. Although several factors affect construction workers' productivity, this study determined that management-related factors and people-centred management were significant towards influencing low productivity in Zimbabwe.Originality/valueThe study determined people-centred management and demographic-specific interventions as being able to improve construction workers' productivity in Zimbabwe.


2018 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Irena Canjuga ◽  
Danica Železnik ◽  
Marijana Neuberg ◽  
Marija Božicevic ◽  
Tina Cikac

Purpose The purpose of this paper is to explore the impact of self-care on the prevalence of loneliness among elderly people living in retirement homes and older people living in their homes/communities. Design/methodology/approach The research was conducted through standardized SELSA-L assessment loneliness questionnaires and the Self Care Assessment Worksheet for self-care assessment. The results were processed using the Kruskal–Wallis test. Findings The obtained results have shown that impaired self-care ability affects the prevalence of loneliness among the elderly almost the same in both groups of participants. However, regarding the relationship between the state of health and self-care, only a statistically significant difference in the prevalence of loneliness is found in the case of the participants living in their homes, with the worst health condition affecting the poorer psychological care. Research limitations/implications It is necessary to point out the limitations of the research, primarily sample limitations and the selected design of the study. The sample consisted of two different and relatively small groups of participants which could adversely affect the representativeness of the sample and reduce the possibility of generalising the results. The next limiting factor is the age distribution the authors used in the research, where the age of the participants as a very important variable was collected by age range and not precisely which consequently resulted in inequality in subgroup sizes. Thus, the middle age (75–85) covers up to ten years, which is a huge range at an older age and can mean major differences in functional ability, and can impact the self-care assessment. Practical implications Nurses are indispensable in care for the elderly and they need to promote and encourage self-care of the elderly through health care. Elderly people living in retirement homes should be allowed to participate equally in health care in order to preserve their own autonomy and dignity. However, to benefit those who live in their homes, nurses should be connected to the local community and thus stimulate various forms of preventative (testing blood sugar levels, blood pressure and educating on the importance of preventive examinations) or recreational activities in the environment of elderly people with the goal of preserving their functional abilities. Originality/value The impact of self-care on loneliness was not sufficiently researched, and this paper contributed to understanding the complexity of loneliness phenomena among the elderly with the aim of developing a model of prevention.


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