scholarly journals Cost Overrun Factors Involving Local Private Residential

2018 ◽  
Vol 7 (3.36) ◽  
pp. 6
Author(s):  
Nik Fatma Arisya Nik Yahya ◽  
Suhaida S.K ◽  
Nurul Aini Osman ◽  
Nadeera Abdul Razak
Keyword(s):  
Construction Projects ◽  
Financial Risk ◽  
Quantitative Method ◽  
Prime Factor ◽  
Cost Overrun ◽  
Average Amount ◽  
Cost Performance ◽  
Design Error ◽  
The Cost ◽  
Residential Projects

Cost is the prime factor for driving to the successful of a project. A poor cost performance become a common problem in worldwide which bring a significant financial risk to both contractors and clients. Construction projects are relatively risky because the projects operate in a complexity and dynamic situation. This study aimed to explore the major contributors of cost overrun and propose strategies in minimizing the cost overrun factors involving local private residential projects in Malaysia. A quantitative method was applied to the respondents from contractors firm Grade G7 in Selangor area, and the data were analyzed using Likert scale to obtain mean score. There are 5 categories of cost overrun factors found from previous studies. Design error and poor contractors site supervision were ranked as the top two contributors to cost overrun in Private Residential Projects. Additionally, 79% of the respondents agreed that construction projects face cost overrun with an average amount of 1-5% of contract sum. 9 strategies are available to overcome the problems and the result shows that effective strategic planning is the most effective mitigation. 

scholarly journals Evaluation of Dispute Prone Areas in Construction Projects

2021 ◽  
Author(s):  
Manu Noushad ◽  
Anu V. Thomas ◽  
Ramaswamy K. P
Keyword(s):  
Analytical Hierarchy Process ◽  
Construction Projects ◽  
Cost Overrun ◽  
Cost Performance ◽  
Research Findings ◽  
The Cost ◽  
Hierarchy Process

Construction projects experience claims and disputes due to increased complexity of contract documentation, which subsequently affects the cost performance of projects. Majority of the previous studies on disputes and cost overrun have mainly focused on finding the causes of cost overrun or disputes in the industry. Identification of dispute prone areas and the associated range of cost overrun due to the disputes are less explored. Previous research findings indicate that the various factors resulting in cost overrun itself are the causes of disputes. It is necessary to understand, assess and take appropriate actions for increasing the predictability of claims and disputes in order to improve the cost performance of construction projects. In this study, an attempt is made to identify and prioritize the dispute prone areas in Indian construction projects by analytical hierarchy process (AHP).

Inhibiting Factors of Cost Performance in UAE Construction Projects

2020 ◽  
Vol 11 (2) ◽  
Author(s):  
Ahmed Salem Ahmed Marey Alhammadi ◽  
◽  
Aftab Hameed Memon ◽  
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Past Research ◽  
Cost Overrun ◽  
Index Method ◽  
Cost Performance ◽  
Factors Affecting ◽  
Inhibiting Factors ◽  
Critical Problems ◽  
Structured Questionnaire

UAE construction industry frequently faces poor cost performance which commonly known as cost overrun problem. This problem is resulted from several factors and it is important to identify these cost overrun factors in order to avoid and minimize it. Hence, this paper focused on determined the relevancy of factors affecting cost performance in construction projects of UAE. Through a review of past research works conducted globally, 27 factors of cost overrun were listed and used for developing a structured questionnaire. A survey was conducted with 33 practitioners from client, consultant and contractors organizations involved in handling construction projects in UAE. The respondents were requested to state their perception regarding the relevancy of each of the factors that was perceived in context with cost overrun issue using 5-points Likert scale. The responses were analysed using average index method and the results found that all the 27 factors are relevant with construction industry of UAE in causing cost overrun. These factors can be used for further investigation to uncover critical problems of cost overrun.

scholarly journals Delay and cost overrun in road construction projects in Jordan

2015 ◽  
Vol 4 (2) ◽  
pp. 288 ◽  
Author(s):  
Nabil Al-Hazim ◽  
Zaydoun Abusalem
Keyword(s):  
Construction Projects ◽  
Road Construction ◽  
Weather Conditions ◽  
Public Works ◽  
Fiscal Year ◽  
Cost Overrun ◽  
Construction Time ◽  
Change Orders ◽  
Critical Problems ◽  
The Cost

This study aims to identify the most important factors that cause delay in road construction projects in Jordan, which results in cost and time overrun allocated for this type of engineering projects and cause critical problems for both the developer and the contractor. The gap between the cost at completion and that originally estimated, known as cost overrun, can be regarded as one of the most important parameters reflecting the success of projects. In the public sector, money spent on project change orders results in increased construction time which in return reduces the number and size of the projects that can be completed during any given fiscal year. To achieve this goal, the documents and the final reports for several sample projects implemented over the years 2000 to 2008 were analyzed. All the projects were administered by the same organization taken from Jordan Ministry of Rural and Public Works. The results of this study can assist highway officials in their design, planning, scheduling and projects completions so that necessary actions can be taken to control these overruns in future projects. The study showed that 19 factors might cause delays of road construction projects as defined through a detailed literature review. The analysis of the study indicated that the top causes affecting time and cost overrun in road construction projects in Jordan are Terrain and Weather conditions.

scholarly journals Effective Selection of Resources for Construction using Program Tool

2020 ◽  
Vol 9 (3) ◽  
pp. 2927-2931
Keyword(s):  
Construction Industry ◽  
Resource Selection ◽  
Construction Projects ◽  
Cost Overrun ◽  
Cost Performance ◽  
Programming Tool ◽  
Effective Selection ◽  
Selection Factor ◽  
Selection Of ◽  
Indian Scenario

In the Indian scenario construction industry facing a major problem is cost and time overrun. Effective time performance and cost performance are very important to execute the project in a successful manner by keeping them within the prescribed schedule and cost. Overall cost and duration of construction projects affected by the effective resource selection factor. This paper's objective is to rectify the improper selection of resources by a programming tool. Field survey and codebook study did collect the needed data to feed in the programming tool. The prepared tool gets distributed and making to access by every stakeholder of construction projects. This may result in the selection of construction resources as effectively. The term cost overrun in the resource part will be reduced.

scholarly journals Influence of rebar practice in the total cost of building construction projects: The case of Hawassa city, Ethiopia

2020 ◽  
Vol 12 (1) ◽  
pp. 54-65
Author(s):  
Tariku Nigussie ◽  
M.K. Chandrasekar
Keyword(s):  
Construction Projects ◽  
Cost Overrun ◽  
Value Analysis ◽  
Total Cost ◽  
Correlation And Regression Analysis ◽  
Central Value ◽  
Research Designs ◽  
Analytical Research ◽  
The Cost ◽  
Bill Of Quantity

Rebar is one of the materials which is so scarce and highly expensive. The existing practices produce a large quantity of wastage; which contributes to the increment of the project cost. This study aimed to analyze the causes, extent, and remedies of steel wastages on the total costs of construction projects in Hawassa city. The study followed descriptive and analytical research designs. The cost estimated in the bill of quantity and the final cost after the provision of the steel with alterations was compared and the reasons for cost overrun were analyzed. The data were analyzed using Central value analysis, correlation and regression analysis using SPSS stat20, RebarWin7.97, ETABS2016. The percentage of the cost of steel wastage in total cost was found 1.43%. The result of the study verdict that frequent design change and bare-benders skill gap contribute much to the material wastage, thus for the cost overrun of projects. Keywords: Bending gain, cost overrun, detailing, rebar, redesign, steel, wastage

scholarly journals Estimation of cost overrun in construction projects using Fuzzy Logic

2021 ◽  
Vol 23 (05) ◽  
pp. 797-805
Author(s):  
Neelakash Haloi ◽  
◽  
Tapas Goyal ◽  
Faizan Zahoor ◽  
Harsh Jain ◽  
...  
Keyword(s):  
Fuzzy Logic ◽  
Construction Projects ◽  
Cost Overrun ◽  
Time Data ◽  
Construction Companies ◽  
Five Factors ◽  
Spss Software ◽  
The Cost ◽  
The Impact ◽  
Published Research

In recent years, the impact of the construction industry on the economy of India is increasing. However, there are a number of problems that are being faced by the construction companies or contractors or other relevant stakeholders, in the completion of a construction project. One of the major problems being faced is time and cost overrun. Thus, it is important to find ways of mitigating this critical problem. One of the solutions that is being used is the prediction of the amount and time that a project might overrun beforehand i.e. estimating the overrun during the design phase itself. This prediction can be done using a number of different techniques, the important one of which used in this paper is through the use of Fuzzy Logic. It also provides a brief description about the factors that are responsible for causing this cost overrun. The factors are identified by conducting a questionnaire survey and gathering responses from the relevant stakeholders which include contractors, project engineers, architects and consultants. The responses collected are further processed and analysed using SPSS software. The top 5 factors have been selected after the analysis and further used in preparation of the fuzzy logic model in the fuzzy toolbox of MATLAB. Further, the validation of this model has been done with real-time data of projects from various published research papers. Thus, the model developed provided prediction of the percentage of the cost overrun based on the percentage input of the top five factors.

Systematic Review of Cost Overrun Research in the Developed and Developing Countries

2021 ◽  
Vol 12 (1) ◽  
Author(s):  
Mohamad Zahierruden Ismail ◽  
◽  
Zuhaili Mohamad Ramly ◽  
Razali Adul Hamid ◽  
◽  
...  
Keyword(s):  
Developing Countries ◽  
Construction Industry ◽  
Construction Projects ◽  
Developed Countries ◽  
Developing Nations ◽  
Transport Infrastructure ◽  
Cost Overrun ◽  
Cost Performance ◽  
Significant Difference ◽  
Developed Nations

For decades, reputation of the construction industry has been tainted by poor cost performance caused by project cost overrun. In addition, studies by scholars worldwide have also found cost overrun to be more serious in developing countries compared to the developed countries. Despite the numerous researches addressing the issue of cost overrun in the construction industry through the years, the issue remains. Acknowledging that maintaining good cost performance is a key factor of project success and that the issue has persisted for decades, this study aims to explore the distinction of cost overrun studies that has been conducted between developed nations and developing nations. In achieving this aim, a systematic literature review is performed by following the integrative steps of PSALSAR (Protocol, Search, Appraisal, Synthesis, Analysis and Report) and PRISMA (Preferred Reporting Items for Systematic Reviews and Meta-Analyses) for screening and selecting the retrieved studies. The synthesis and screening of literatures have yielded with 152 articles which are then classified into their countries, developed countries (44) and developing countries (108). The results indicated a significant difference in the domain of research on cost overrun between the 2 nations. Despite the numerous studies on cost overrun in the developing nations compared to developed nations, the majority of the studies are not directed to any specific type construction while developed nations have moved forward to focus on more specific projects. The project with the highest attention in the developed nations is transport infrastructure construction projects, particularly rail infrastructure projects. The findings of this study have shown that there have been broad studies conducted on cost overrun in both developing nations and developed nations. However, there is a slight lacking in comprehensiveness of cost overrun studies in the developing nations, perhaps future studies on cost overrun in developing nations can be directed to more specific areas of construction projects such as those that have been performed by researchers of the developed nations.

FACTORS AFFECTING COST OVERRUN IN CONSTRUCTION PROJECTS

2021 ◽  
Vol 8 (1) ◽  
Author(s):  
Mohammed Algahtany
Keyword(s):  
Saudi Arabia ◽  
Construction Projects ◽  
Cost Overrun ◽  
Cost Overruns ◽  
Factors Affecting ◽  
Public Projects ◽  
Low Performance ◽  
Major Factors ◽  
Public Construction ◽  
The Cost

Public construction projects in Saudi Arabia have been suffering from low performance for the past decade. Cost overrun is one of the most important issues in project’s performance and is nearly associated with most of public projects. The aim of this study is to identify and assess the major factors leading to cost overruns in education construction projects in the Northern Province of Saudi Arabia to minimize the risks’ effects in future projects. The research methodology started by identifying cost overrun factors through literature review, project’s documentations, and experts’ interviews. Professionals who worked at the construction projects undertook a questionnaire survey to investigate the importance of the cost overrun factors. The top factors of cost overrun were identified through the analysis of the factors’ occurrence and severity. The study main results included the top causes of cost overrun which are delay in contractors’ progress payment by client, difficulties in financing project by contractor, delays in sub-contractor’s work, additions of quantities such as excavation, backfill, and concrete works, and bid award for lowest price. The investigated risks in the study should be evaluated and mitigated in future projects to minimize their effects and enhance the industry performance.

Effects due to Change in UAE Construction Projects

2020 ◽  
Vol 11 (2) ◽  
Author(s):  
Abdulla AlAmeri ◽  
◽  
Nur Ain Ngah Nasaruddin ◽  
Aftab Hameed Memon ◽  
◽  
...  
Keyword(s):  
Construction Projects ◽  
Major Effect ◽  
Project Performance ◽  
Cost Overrun ◽  
Review Of Literature ◽  
Quality Performance ◽  
Negative Impacts ◽  
The Cost ◽  
Materials Specifications ◽  
Construction Works

Globally construction works are suffering from several challenges. One of the major challenges is changes during execution of the construction work. Changes exert several negative impacts on the project performance. For effective project performance, it is necessary to understand the effects of changes. Hence, this study investigated various effects of changes occurring in construction project. Investigation was carried out quantitatively through questionnaire survey based on effect variables identified from review of literature. It involved three categories as time overrun, cost overrun and quality measured with 48 variables. 100 questionnaire sets collected against 218 questionnaire forms distributed among the practitioners were analysed statistically. From analysis results, it was found that cost overrun is major effect of changes followed by quality and time overrun. Delay in completion schedule, slower project progress and dispute between owner and contractor are reported as major drivers of time overrun. Top three variables of cost overrun in cost overrun are increase the cost of the projects, interrupted cash flow and additional money for contractor. While, major drivers of the quality in construction projects are rework of bad quality performance, changes in materials specifications and changes in material types & specifications during construction. These findings will be helpful for the practitioners in achieving project performance.

Sign in / Sign up

Export Citation Format

Share Document