scholarly journals The Impact of Failure Types in Construction Production Systems on Economic Risk Assessments in the Bidding Phase

Complexity ◽  
2018 ◽  
Vol 2018 ◽  
pp. 1-13 ◽  
Author(s):  
Milan Mirkovic

The aim of the paper is to research and analyze the impact of the type of failure on economic risks in the bidding phase, as the most important part in the management of construction projects. The survey included the impact of risk on the process of determining unit prices from the perspective of a potential contractor. Also, the failure rate and repair rate of the 34 machines from the machine park of the company for road construction were researched. On the basis of obtained parameters and depreciation periods, the operational availability of components of construction production systems was determined. The proposed methodology for estimating impact of the availability function is a modified method of the frequency balancing. It has been tested on a concrete project from the practice in the process of harmonizing construction norms of time that preceded the final adoption of the unit prices. Differences in prices are results of the system failure of construction machinery and plants and have justified a hypothesis of obtaining more realistic costs that can occur in the projects.

2020 ◽  
Vol 3 (1) ◽  
pp. 199
Author(s):  
Alexander Junius ◽  
Mega Waty

In a construction project, changes during the construction period are common. This change can be in the form of an increase or decrease in volume and type of work, changes in work specifications, or changes in the schedule for implementation. Changes in projects are often known as change orders. Change orders must be approved by all parties in a project namely, contractors, owners, and consultants. Change orders are caused by several factors such as changes in design, delays in procurement of goods, differences in field conditions, and others. The impact of this change order is felt by all parties involved in a project, but the change order has a different impact on each party involved. This study aims to determine the biggest impact of change orders from the contractor. In the questionnaire submitted the impact of change order is divided into several variables namely, the cost of quality, time, organization, and others. From the responses of respondents regarding the impact of change orders on road construction projects, an analysis was performed with the calculation of the Relative Importance Index (RII), and the biggest impact was obtained. Before the data is processed with RII, the validity and reliability tests are performed first. The biggest impact of change orders caused by change orders is that change orders increase the budget for contractors, change orders increase overhead costs, increase project duration, cause project costs overruns, and change orders cause a decrease in project profits. AbstrakPada suatu proyek konstruksi, perubahan selama masa konstruksi merupakan hal yang umum terjadi. Perubahan ini bisa berupa penambahan atau pengurangan volume dan jenis pekerjaan, perubahan spesifikasi pekerjaan, maupun perubahan jadwal pelakasnaan. Perubahan dalam proyek sering dikenal change order. Change order harus disetujui oleh semua pihak yang ada dalam suatu proyek, yaitu kontraktor, pemilik, dan konsultan. Change order disebabkan oleh beberapa faktor seperti perubahan desain, keterlambatan pengadaan barang, perbedaan kondisi lapangan, dan lain-lain. Dampak dari change order ini dirasakan seluruh pihak yang terlibat dalam suatu proyek, namun change order menimbulkan dampak yang berbeda pada tiap pihak yang terlibat. Penelitian ini bertujuan untuk mengetahui dampak change order terbesar dari pihak kontraktor. Dalam kuesioner yang diajukan dampak change order dibagi menjadi beberapa variabel yaitu, biaya mutu, waktu, organisasi, dan lainnya. Dari hasil tanggapan responden mengenai dampak change order pada proyek konstruksi jalan, dilakukan analisis dengan perhitungan Relative Importance Index (RII), dan didapat dampak terbesar. Sebelum data diolah dengan RII dilakukan uji validitas dan uji reliabilitas terlebih dahulu. Dampak change order terbesar yang ditimbulkan oleh change order adalah change order menambah anggaran untuk kontraktor, change order meningkatkan biaya overhead, menambah durasi proyek, menyebabkan biaya proyek membengkak, dan change order menyebabkan penurunan keuntungan proyek.


Author(s):  
Nokulunga Xolile Mashwama ◽  
Winnie Mushatu ◽  
Didibhuku Thwala ◽  
Clinton Aigbavboa

There are numerous participants involved in construction projects including the client or sponsor of the project, regulatory bodies, contractors, consultants, ward councilors, community who affect or become affected by the project. Stakeholders can affect the road construction positive or negatively. Stakeholder’s engagement is done to avoid unnecessary conflicts and controversies and to attain the desired successful implementation of the project. The paper aims to identify the impact of internal stakeholders on road construction project. Quantitative approach was adopted for this study. 100 questionnaires were distributed and 76 were collected and analyzed. The data was collected through primary and secondary sources. Factor analysis was conducted, Correlation matric coefficients has been conducted to ensure visibility of coefficients greater than 0.3 and Kaiser-Meyer-Olkim (KMO) and Barlett’s test were conducted. From the findings it transpired that late payment to service providers; failure to verify contractor qualification; Client knowledge to review design documentation; inadequate involvement during construction project, lack of understanding project feasibility. The participation of stakeholders encourages the public to share their knowledge with the regulatory authorities, fosters better-informed decisions and decreases likelihood of project failure. Early stakeholder’s involvement can add benefits of diffusing opposition to a project.


2012 ◽  
Vol 433-440 ◽  
pp. 3873-3877
Author(s):  
Thoedtida Thipparat

Most construction activities are carried out with heavy machinery. In the process of construction, energy is directly consumed by using construction machinery. Energy consumption of construction machinery can vary according to the scale, the deterioration of machinery, the difficulty of operating machinery, the ability of construction personnel to work, and the working condition. An approach for construction managers to assess the effect of these factors on the energy consumption is rarely deployed. Current methods depend mainly on the experience and subjective judgment of the project managers, who may be unfamiliar with the impact of these factors on energy consumption of construction machinery, and thus, often times produces inaccurate results. This paper presents a model that utilizes historical data and experts’ knowledge, and employs fuzzy set concept for assessing the factors having the impact on energy consumption of construction machinery. Based on the model, a fuzzy reasoning knowledge-based energy evaluating system is proposed. A case study involving highway construction projects implemented in two geographic areas with different working environments is presented to illustrate the salient features of the system that allows users to simulate experts’ judgment and to demonstrate the capability and effectiveness of the system that can assist contractors to better estimate energy consumption of construction machinery for highway construction projects.


2021 ◽  
Vol 940 (1) ◽  
pp. 012091
Author(s):  
A Setiawan

Abstract This article analyzes the impact of the construction of the Cinere-Jagorawi (Cijago) Toll Road Section II, which connects the Bogor Highway and the Kukusan area on the environment around the toll road construction site. Most of the Kukusan areas affected by the toll road construction project are open areas and shrubs, which are habitats for wild animals, especially snakes so that the balance of snake habitat in the area is disturbed. The research method used in this study is the historical method which consists of four stages, namely heuristics, verification, interpretation, and historiography. In addition to books obtained from several libraries, the data used in this study were also obtained from interviews with people living near toll road construction projects, especially ornamental plant traders. This research shows that environmental changes due to the construction of toll road infrastructure impact the disruption of the habitat of several wild animals and an increase in temperature and concerns about the availability of clean water in the future, especially in the Kukusan area.


2021 ◽  
Vol 12 (1) ◽  
pp. 32-38
Author(s):  
Wesam Salah Alaloul ◽  
Muhammad Ali Musarat ◽  
Hussain Mehmood ◽  
Muhammad Altaf

Road construction in Pakistan is booming because of China’s One Belt One Road program. Pakistan is in a developing stage and facing a lot of challenges in construction projects, primarily in labour productivity. This research focuses on the factors affecting labour productivity in road construction projects of Pakistan. A questionnaire was developed to observe the impact of critical factors on labour productivity. Based on the gathered responses, the factors were ranked using the Relative Importance Index (RII). The analysis shows that out of thirty (30) factors, the most important five (5) factors that affect labour productivity on road construction are unskilled workforce, payment delays to labour, tools and equipment shortages, poor communication of supervisor with labours and financial difficulties of owner/contractor. By focusing on these critical issues’ betterment can be made in labour productivity which will directly enhance the projects’ performance.


2021 ◽  
Vol 11 (1) ◽  
pp. 956-962
Author(s):  
Magdalena Kowacka ◽  
Dariusz Skorupka ◽  
Artur Duchaczek ◽  
Agnieszka Waniewska ◽  
Dominika Dudziak-Gajowiak

Abstract Road construction projects are characterized by multitasking and the influence of the correct implementation of one task on another. In the subject literature, we can encounter the analysis of risk factors throughout the project, and yet, we rarely find the distinction and characteristics of the impact of risk factors resulting from the implementation of planning and measurement tasks, the correctness and timeliness that have a huge impact on the performance of subsequent tasks, and the success of the project. Additionally, attention should be paid on the distinction between design work and the implementation of construction. During the implementation of construction works, we are more capable of detecting errors faster at the initial stage than at the stage of performing measurements, which suggests the need to focus on minimizing the occurrence of risk factors at the initial stage. Therefore, two questions have been asked. How to quantify the risk factors of geodetic works in road construction projects? How to allocate quantified risk factors of geodetic works in the schedule? The following article presents the description and the example of the practical use of the risk assessment procedure of geodetic works and risk allocation in the schedule based on the MORAG method (Method of Risk Analysis for Geodesy), which is the original method of risk analysis of geodetic works in road construction projects. As a result of these works, the risk values for the i-th risk factor and i-th geodetic task were determined, considering the increase in the duration of the work, the increase in the costs of the work, and all evaluation criteria. Then, the extension was described and calculated based on the data obtained from the actual implementation of the road construction project, the value, which in this case is 11.05 days, was entered into the modified schedule. The results of this study may help to better understand the scale of the impact of the correctness of the implementation of geodesy tasks on the implementation of construction tasks. Additionally, they may serve to increase the awareness of the scale of consequences of incorrectly performed measurement tasks (demolition is necessary) and greater attention on the cooperation between the entities implementing these activities.


2020 ◽  
Vol 38 (7A) ◽  
pp. 1069-1076
Author(s):  
Layth T. Ali ◽  
Raid S. Abid Ali ◽  
Zeyad S. M. Khaled

Cost overrun in construction projects is a common phenomenon in Iraq. This might occur due to diversity of factors. This study aims to identify the factors influencing construction projects cost that are potentially controllable by main contractors. A field study through a questionnaire survey was directed to a sample of related Iraqi professional engineers from general contracting companies at both public and private sectors. Their opinions on the impact and frequency of each factor were investigated. The questionnaire offered (59) factors classified in (8) categories namely; legislations, financial and economic, design, contractual, site management, material, labor and equipment. The factors were ranked according to the highest Relative Importance Index (RII). The study revealed (10) major factors that are potentially controllable by main contractors namely; labor productivity, sub-contractors and suppliers performance, equipment productivity, site organization and distribution of equipment, experience and training of project managers, scheduling and control techniques, planning for materials supply, planning for equipment supply, materials delivery and planning for skilled labor recruitment. Recommendations to aid contractors and owners in early identification of these factors are also included in this study.


2015 ◽  
Vol 3 (2) ◽  
pp. 69-84
Author(s):  
Wadhah Amer Hatem ◽  
Samiaah M. Hassen Al-Tmeemy

     Suicide attacks, bombings, explosions became the part of daily life in Iraq. Consequently, the threat of terrorism put the Iraqi construction sector in the face of unique and unusual challenges that not seen on other countries. These challenges can have extensive impact on construction projects. This paper seeks to examine the impact of the terrorist attacks on construction industry and determine the extent to which the impact of terrorism on construction projects in terms of cost, schedule, and quality. This study adapted quantitative and qualitative approaches to collect data using questionnaire survey and interviews, as well as historical data. The study focused on projects that have been the target of terrorist strikes in Diyala governorate. A variety of statistical procedures were employed in data analysis. The results revealed the extent to which terrorist attacks impact construction projects in terms of cost, time, and quality. The results of this study will enhance the awareness of all construction parties to the impact of the terrorist attacks against construction projects. Eventually, this can develop a risk management assessment and assist contractors to properly protect projects and buildings to minimize injuries and fatalities in the event of terrorism.


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