PERFORMANCE CHALLENGES OF MEGA PROJECTS

2015 ◽  
Vol 2 (1) ◽  
Author(s):  
George Jergeas ◽  
Jim Lozon
Keyword(s):  
Construction Projects ◽  
Project Performance ◽  
Improve Performance ◽  
Industrial Construction ◽  
Capital Projects ◽  
Cost Overruns ◽  
Survey Responses ◽  
Performance Challenges ◽  
Industry Planning

Large (mega) capital projects are experiencing cost overruns and schedule delays that are negatively affecting return on investment. Energy and industrial construction projects face unique challenges in project execution due to geography, climate, labour market characteristics, investment and other factors, both internal and external to the industry. Nonetheless, there is an urgent need for industry to address these challenges in order to improve the long-term success and sustainability of industry. A survey of industry leaders regarding their perception of where industry is at, areas for improvement and challenges they are facing. We asked them their opinion on what practices are good or bad, what needs to be improved and what lessons they may have learned regarding industry planning and execution processes, practices and procedures for large capital projects. The paper will present the findings from this industry survey. We also conducted a literature search of published material of industry practices on large capital projects. We analyzed the published material and survey responses to determine the current industry project performance (where are we at today?), factors that affect performance (what are we doing today?) and how can we improve performance (what can we do tomorrow?). We then present our recommendations. We encourage executives to expand their oversight of projects.

scholarly journals Investigating Rework: Insights from the Malaysian Construction Industry

2021 ◽  
Vol 14 ◽  
pp. 1-9
Author(s):  
Jeffrey Boon Hui Yap ◽  
Shi Min Tan
Keyword(s):  
Quality Management ◽  
Construction Industry ◽  
Construction Projects ◽  
Poor Quality ◽  
Project Performance ◽  
Statistical Techniques ◽  
Cost Overruns ◽  
Delivery Performance ◽  
Communication Design ◽  
Design Changes

Construction practitioners recognise that rework is undesirable due to the detrimental effects. While rework literature has examined rework causation factors in construction projects, the problem continues to plague the industry resulting in poor delivery performance. To better understand this phenomenon and given the scarcity of Malaysian-based rework study, a questionnaire survey involving 130 Malaysian construction practitioners (consultants, contractors and clients) were undertaken to obtain feedback about nature, implications, causes and solutions for rework. Data were analysed using descriptive statistical techniques to prioritise the variables studied. From the analyses, rework is a causal factor for delays and cost overruns, higher wastage and productivity inhibitor. The findings revealed the leading causes of rework are poor quality management, improper planning, lack of communication, design changes and poor subcontractor management. Some practical rework minimisation approaches are also suggested to better manage and prevent rework towards enhanced project performance.

scholarly journals Controlling Methods and Causes of Wall Cracks of Civil and Industrial Construction Projects

2021 ◽  
Vol 4 (6) ◽  
Author(s):  
Zhiqi Guan
Keyword(s):  
Construction Projects ◽  
Chinese Economy ◽  
Construction Quality ◽  
Industrial Construction ◽  
Building Safety ◽  
The Common ◽  
Reform And Opening Up ◽  
Safety And Stability ◽  
Opening Up

Since the reform and opening up, Chinese economy has developed rapidly. Industrial and civil construction projects have made significant progress. That said, it is of great significance to further strengthen the construction management of industrial and civil construction projects for the long-term development of construction industry in China. In terms of reality, one of the common problems in the current industrial and civil construction is wall cracks, which will have an important impact on the appearance of the building and the overall construction quality. Therefore, it is necessary to analyze the reasons and put forward corresponding measures on it. That is how we can continuously improve the construction quality in civil and industrial construction projects, thereby achieving the enhancement of building safety and stability.

scholarly journals Assessment of Causes and Effects of Variation on Construction Project Performance in South West Nigeria

2020 ◽  
pp. 629-641
Author(s):  
Esan Martins Taiwo ◽  
Folaranmi Kazeem Adekunle ◽  
Hassan H ◽  
Buari T. A
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Construction Project ◽  
Project Performance ◽  
Cost Overruns ◽  
South West ◽  
Training Professionals ◽  
Negative Impacts ◽  
Proactive Measures

The construction industry in Nigeria faces many problems, including the delay due to variations in project execution. This delay has been studied as a major setback in the Nigerian construction industry. In Nigeria, the construction industry's performance in terms of time has been observed to be poor. The objective of this study is to examine the variation of the construction project in order to determine the effect on the delivery of the project. The maximum performance of the project would be reached if the work always goes efficiently on time with the budget. The result of the variation is delay, cost overruns, quality defects and other negative impacts. The causes of variation were identified by a questionnaire survey for two higher education institutions. The results of the study identified the five main factors, including change of plan or scope, defective labour, customers' financial problems, unavailability of skills and desired profitability of the entrepreneur. In general, the study shows agreement among clients, consultants and contractors regarding the classification of the 20 factors that cause the variation. The results also reveal that factors related to clients are the main causes of variation, followed by factors related to contractors. An understanding of the causes and effects of the variation would be helpful in training professionals to assess the variation. In addition, the study would also help professionals take proactive measures to reduce the gaps on construction projects.

scholarly journals A framework for total productivity measurement of industrial construction projects

2019 ◽  
Vol 46 (3) ◽  
pp. 195-206 ◽  
Author(s):  
Selam Ayele ◽  
Aminah Robinson Fayek
Keyword(s):  
Construction Projects ◽  
Project Performance ◽  
Productivity Measurement ◽  
Industrial Construction ◽  
Construction Productivity ◽  
Data Collection And Analysis ◽  
Total Productivity ◽  
Specific Activities ◽  
Questionnaire Surveys ◽  
Project Level

Productivity measurement is a concern for both construction practitioners and researchers. In construction, productivity can be measured at three levels: activity, project, and industry. At the project level, previous studies focused on measuring the productivity of specific activities. In addition, existing project-level productivity metrics do not consider the effect of all resources used in a project. To effectively assess overall project performance, the productivity of all project activities and resources used must be taken into account. This study presents a framework that takes into consideration all resources used in a project and proposes a metric for measuring the total productivity of construction projects. A focus group session with experts, followed by questionnaire surveys, were used to assess the applicability of the framework. This paper makes a contribution by providing researchers and practitioners with a framework and tools for data collection and analysis of total construction project productivity.

IMPLEMENTATION OF PUBLIC-PRIVATE PARTNERSHIP PROJECTS: PROBLEMS AND ITS SOLUTIONS

2020 ◽  
Vol 1 (9) ◽  
pp. 137-141
Author(s):  
T. T. ADAMIYA ◽  
Keyword(s):  
Life Cycle ◽  
Best Practices ◽  
Construction Projects ◽  
State Level ◽  
Cost Overruns ◽  
Private Partnership ◽  
Use Of Resources ◽  
Effective Use ◽  
Timely Delivery

The purpose of this work is to identify the main problems in the formation and development of PPP projects in Russia, as well as to propose ways to solve them. The article analyzes the significant barriers hindering the development of PPP in Russia, based on the results of international and Russian studies. The study found that a strategic PPP approach has the potential to mitigate cost overruns and facilitate the timely delivery of each project phase on a timetable by clearly delineating governance, sharing common risks, integrating resources, applying best practices, and setting cost budgeting and accountability throughout life cycle. PPP in the long term can solve each of these tasks to varying degrees, depending on the project. Recently, the development of public-private partnerships (PPPs) and overcoming barriers to the implementation of investment and construction projects in the form of PPPs have become increasingly relevant and discussed at the state level, as well as among large and medium-sized businesses in Russia. The development and improvement of financial mechanisms within the country will create a basis for the effective use of resources, business and government opportunities in the development of PPP projects, in particular infrastructure.

scholarly journals IMPACT OF DESIGN CHANGES IN CONSTRUCTION PROJECT

2018 ◽  
Vol 4 (1) ◽  
pp. 1
Author(s):  
Nurul Huda Muhamad ◽  
Mohammad Fadhil Mohammad
Keyword(s):  
Systematic Review ◽  
Conference Proceedings ◽  
Construction Industry ◽  
Construction Management ◽  
Construction Projects ◽  
Project Performance ◽  
Cost Performance ◽  
Cost Overruns ◽  
Future Studies ◽  
Design Changes

Design changes in construction projects are always going to happen and cannot be avoided. Design changes are the primary contributor to disruption of time and cost performance of construction projects. Previous research in this domain lacks of detail studies on systematic review on the existing literature. This paper reviewed literature published in peer-reviewed journals and conference proceedings in the construction management field and had emailed several questions to the expert in construction industry. The objectives were to recognize the causes and impacts of design changes on project performance and to provide insights for future studies in Malaysian context. The findings indicate that design changes originate mainly from the owner side are identified as important causing factors to time overruns and cost overruns. This paper proposes framework for the management of design changes in construction projects.

scholarly journals The Concept of Inter-Firm Partnering Practice Between Client and Contractor In The Construction Projects

2021 ◽  
Vol 7 (1) ◽  
pp. 94
Author(s):  
Faridah Muhamad Halil ◽  
Mohamad Suffian Hasim ◽  
Siti Mazuen Kamaruddin
Keyword(s):  
Construction Projects ◽  
Business Organizations ◽  
Public And Private ◽  
Cost Overruns ◽  
The Public ◽  
Complex Projects ◽  
Good Reputation ◽  
Interfirm Collaboration ◽  
Common Goals

Interfirm collaboration is a cooperation between business organizations that allow achieving their common goals more effectively. Through partnering concept of collaboration, the organization will gain the benefits in terms of the project successfully run according to the time, cost and quality. The understanding of this concept of partnering is crucial for the clients in the construction project, without this knowledge of partnering concept the client will suffer cost overruns, delay, more variation order and dispute in the project implementation. The study conducted using a quantitative approach and involved the sampling from public and private clients. The main result indicates that that the public clients and private client understood the concept of partnering. Public clients agreed that specific projects require partnering with contractors. Suitability of the projects is complex projects, critical project and long term development. High impact projects in the public clients are given to the contractors that shows the capabilities and good reputation from the previously completed project.  However, Private clients stated that projects that are critical to the client's business are suitable for the partnering concept.

scholarly journals Analysis of Cost Overruns in Saudi Arabia Construction Projects: A University Case Study

2020 ◽  
Vol 10 (1) ◽  
pp. 84-101
Author(s):  
Majed Alzara ◽  
Jacob Kashiwagi ◽  
Dean Kashiwagi ◽  
Abdulrahman Al-Tassan
Keyword(s):  
Saudi Arabia ◽  
Construction Projects ◽  
Common Factor ◽  
Project Performance ◽  
University Campus ◽  
Cost Overruns ◽  
Change Orders ◽  
Public Projects ◽  
Procurement System

Public projects in Saudi Arabia have been experiencing low construction project performance for the past decade. Studies have identified the low-bid delivery method as an important factor in causing such delays. In addition, low bids for contracts have not reflected the actual project cost. A case study was conducted at a university campus in northern Saudi Arabia in which the actual project costs for four projects were examined. The study found that all four projects’ costs were higher than the original bid. In addition, a large survey was conducted of 804 classified contractors and universities representatives who identified change orders as the most common factor causing cost overruns in Saudi Arabia. Previous studies showed that some contractors aim to submit low bids for winning the competition then change orders to reduce their losses. Consequently, low bids also lead to cost overruns. In a comparison using the result of a case study and the results of the Performance Information Procurement System (PIPS), Saudi Arabia’s delivery system was identified as a potential cause of project performance issues.

scholarly journals An Integrated Decision Support Model Based on BWM and Fuzzy-VIKOR Techniques for Contractor Selection in Construction Projects

2021 ◽  
Vol 13 (12) ◽  
pp. 6933
Author(s):  
Aziz Naghizadeh Vardin ◽  
Ramin Ansari ◽  
Mohammad Khalilzadeh ◽  
Jurgita Antucheviciene ◽  
Romualdas Bausys
Keyword(s):  
Construction Projects ◽  
Construction Project ◽  
Water Channel ◽  
Multicriteria Decision Making ◽  
Decision Support Model ◽  
Cost Overruns ◽  
Contractor Selection ◽  
Model Based ◽  
Fuzzy Vikor ◽  
Bid Price

Sustainable development of any country to some extent depends on successful accomplishment of construction projects, particularly infrastructures. Contractors have a key role in the success of these projects. Hence, the selection of a competent contractor as a complicated and hard decision process has a vital importance in the destiny of any construction project. Contractor selection is in essence a multicriteria decision-making that ought to encompass so many aspects of the project and the client’s requirements on one hand and the capabilities and past records of the contractors on the other hand. Failure in selecting a competent contractor may cause time and cost overruns; quality shortcomings; increasing in claims, disputes and change orders; and even failure of the project. In spite of deficiencies of selecting a contractor by the rule of “the lowest bid price”, it still prevails in many countries including Iran. In this paper, a new contractor selection model based on the best-worst method (BWM) and well-known Fuzzy-VIKOR techniques is proposed as a solution to overcome the deficiencies of the traditional “lowest bid price” rule. An illustrative example of a water channel construction project verified the applicability of the proposed model in practice.

How Design Standardization CSFs Can Impact Project Performance of Capital Projects

2020 ◽  
Vol 36 (4) ◽  
pp. 06020003
Author(s):  
Binit K. Shrestha ◽  
Jin Ouk Choi ◽  
Young Hoon Kwak ◽  
Jennifer S. Shane
Keyword(s):  
Project Performance ◽  
Capital Projects
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