AN ASSESSMENT OF CONSTRUCTION PROJECTS COST OVERRUNS IN THE PUBLIC SECTOR

2016 ◽  
Vol 3 (2) ◽  
Author(s):  
Jerminah Khabisi ◽  
Clinton Aigbavboa ◽  
Wellington Thwala
Keyword(s):  
Public Sector ◽  
Construction Projects ◽  
Secondary Data ◽  
Primary Data ◽  
Specific Reference ◽  
Cost Overrun ◽  
Cost Overruns ◽  
Design Changes ◽  
Response Rate Data ◽  
High Level

The purpose of this study was to identify factors that influence project cost overrun within public sector construction projects with specific reference to Gauteng Province of South Africa. The primary data was collected by means of structured questionnaires which were distributed to practicing construction professionals who are engaged in various dimension in public sector construction projects. The secondary data was derived through reviewed literature. Out of 120 questionnaires sent out, 119 were received, which represented 99% response rate. Data received from the questionnaires was analyzed using descriptive statistical procedures. Findings from questionnaire survey revealed that the most dominant factors of cost overruns in public sector project include: variation orders, change in scope of the project, cash flow and financial difficulties faced by contractors, delays in decision making by professional consultants representing the clients, inadequate planning, frequent design changes, lack of coordination between parties, amongst others. The study thus revealed that it is necessary to identify factors that influence construction cost overruns at the start of the project in order to minimize cost overruns and to improve the cost performance on public sector construction projects. This is because of the high level of accountability necessary required for the management of tax payers money.

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.

scholarly journals Construction Cost Overruns of Residential Building Projects in Oman: Root Cases and Mitigation Strategy

2021 ◽  
Vol 10 (3) ◽  
Author(s):  
Mohammed Al Jabri ◽  
Mahmoud Dawood
Keyword(s):  
Negative Impact ◽  
Construction Project ◽  
Residential Building ◽  
Secondary Data ◽  
Primary Data ◽  
Cost Overrun ◽  
Sultanate Of Oman ◽  
Construction Costs ◽  
Cost Overruns ◽  
Time Required

Characteristics of construction project includes a specific purpose and it must meet the requirements and expectations of the client. The construction project activities are always linked together and the time required for each activity does vary. The working on the project will not complete unless there are experts from different departments ranging from site workers, civil engineers, architects, electricians, designers, project engineer, site engineer, project manager and administrative staff such as procurement department and others. One of the primary objectives is to finish the project within budget. Excess of construction costs has a negative impact on project parties. Therefore, the causes of these abuses must be identified, especially in the Sultanate of Oman. This research investigates and evaluates the root causes of the cost overrun, cost trend and financial risks related to the residential projects in Sultanate of Oman. A questionnaire has been designed to collect the primary data and literatures are studied to collect the related secondary data. The causes are categorized into three groups according to the responses of the specialists with the contractor, consultant and client .Aspects of agreement between groups were identified after analyzing the questionnaire.

scholarly journals AKUNTABILITAS DAN TRANSPARANSI PELAPORAN KEUANGAN PEMERINTAH DAERAH SERTA POTENSI WHISTLEBLOWING ATAS PENYALAHGUNAAN DANA

2018 ◽  
Vol 13 (1) ◽  
pp. 13-28
Author(s):  
Anggi Saputra ◽  
Intiyas Utami ◽  
Ika Kristianti
Keyword(s):  
Local Government ◽  
Financial Reporting ◽  
Good Governance ◽  
Secondary Data ◽  
Civil Servants ◽  
City Government ◽  
Primary Data ◽  
Government Agencies ◽  
Government Sector ◽  
High Level

The high level of corruption in the Indonesian government sector makes good governance difficult to achieve. Accountability and transparency is a must in the effort to realize good governance. The efforts to reduce the level of corruption in Indonesia is the awareness of civil servants to disclose the fraud in the workplace agencies. This research uses qualitative methods with the aim to describe the implementation of accountability and transparency of local government financial reporting as well as identify potential whistleblowing for misuse of funds. This research uses primary data in the form of in-depth interviews with informants and secondary data in the form of financial statements of Salatiga local government that has been audited by BPK. The resource persons in this research are civil servants domiciled in Salatiga City and work in SKPD Salatiga City in the finance department of each SKPD. The results of this research indicate that Salatiga City Government has been accountable and transparent in local government financial reporting as well as there is no potential whistleblowing for misuse of funds. The results of this research can be used as an evaluation material for government agencies to establish a good whistleblowing mechanism so that civil servants working in government agencies are more willing to disclose the fraud. Keywords: Accountability, Civil Servant, Good governance, Transparency, Whistleblowing.

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 Value Management Integration for Whole Life Cycle: Post COVID-19 Strategy for the UK Construction Industry

2021 ◽  
Vol 13 (16) ◽  
pp. 9274
Author(s):  
Kieran Bennett ◽  
Mohammad Mayouf
Keyword(s):  
Life Cycle ◽  
Construction Projects ◽  
Best Practice ◽  
Secondary Data ◽  
Primary Data ◽  
Value Management ◽  
Cost Cutting ◽  
Innovation And Technology ◽  
The Uk ◽  
Whole Life Cycle

Value management (VM) and its integration in the whole life cycle (WLC) have become huge concepts for construction projects to provide additional value of an asset for the end user or client. However, the role of VM and its integration as part of the WLC in a construction project remain reactive, and highly impacted by nature of the project, and this has become more challenging with the epidemic impact of COVID-19. This research aims to investigate the mechanisms that delivers value management as part of the “re-invent” strategy proposed by the Construction Leadership Council in the UK government to improve WLC for buildings. In addition to existing secondary data from the literature, primary data were attained using a focus group with six quantity surveyors from different cost consultancies in the UK to gather qualitative evidence using their experiences, perceptions, and key challenges they face when integrating VM. Findings revealed that value management is primarily being used as a cost-cutting tool, the majority of quantity surveyors lack knowledge of what it encompasses, hence the industry needs a more proactive strategy towards it. Analysis revealed that value management is primarily implemented as a cost-cutting solution, key stakeholders (e.g., facility managers) need to be integrated, and there is no standardised process to incorporate value management in projects. The study proposes a four-dimensional (governance and policies, sustainability, industry’s best practice, and innovation and technology) strategy to facilitate more holistic considerations of value management post COVID-19. Future work looks into evaluating the strategy proposed while acknowledging different procurement routes.

scholarly journals IMPACT OF KVK IN DOUBLING FARMERS INCOME IN SITAPUR DISTRICT OF UTTAR PRADESH

2021 ◽  
Vol 8 (9) ◽  
pp. 92-105
Author(s):  
Ritesh Kumar Yadav ◽  
Jahanara Jahanara
Keyword(s):  
Agricultural Sector ◽  
Uttar Pradesh ◽  
Secondary Data ◽  
Learning By Doing ◽  
Primary Data ◽  
Technology Generation ◽  
Farming Community ◽  
Medium Level ◽  
High Level ◽  
The Impact

More than half of Indian population were engaged in agricultural sector but the available technology doesn’t ensure food security of the country. Hence, to diffuse new agricultural invention and innovation in the farming community, there arises a need for effective medium for transfer of technology. Thus, KVK bridges the gap between the technology generation and dissemination. The present study was proposed to understand the impact of KVK in doubling farmers income to formulate suitable programmes. For the study, descriptive research design was adopted. 120 respondents from Biswan taluk of Sitapur district of Uttar Pradesh were selected as respondents. Primary data collected from respondents and secondary data from available literatures. The findings revealed that majority of the respondents were middle aged, illiterate, upto 5 members in their family, medium level of annual income, possesses their own land, agriculture as their main occupation, medium level of mass media exposure, office bearer in one organization, high level of extension contact. Meanwhile, more than half of the respondents had reported medium level of impact towards the activities carried out by KVK, beneficiary selection is not unbiased is a major constraint suggested that maximum emphasis should be given on learning by doing.

scholarly journals PENGEMBANGAN KLASTER AGROINDUSTRI DI DESA GONDANGAN KECAMATAN JOGONALAN KLATEN

2016 ◽  
Vol 15 (2) ◽  
pp. 84
Author(s):  
Ida Susi D ◽  
Didik I ◽  
Asih Marini W
Keyword(s):  
Rural Areas ◽  
Local Governments ◽  
Local Community ◽  
Secondary Data ◽  
Primary Data ◽  
Industry Cluster ◽  
The Public ◽  
High Participation ◽  
The Government ◽  
High Level

SMEs snacks in Gondangan village has the potential to be developed. The village has the potential to be Gondangan Agro-industry region, although it is still much that needs to be repaired and prepared.This study aims to determine the attitude of the public about the development of SMEs in rural areas Gondangan into Agro-industry clusters and how community participation in the development of SMEs in rural areas Gondangan to be Agroindustri. Respondents in this study were the leaders and local community leaders, citizens, snack home industry in the region.This study is a descriptive study with a qualitative approach. The data of this study is primary data and secondary data consists of qualitative and quantitative data. Primary data were obtained with the interview and focus group discussion.The results showed that the attitude of the public, snack ho,e industri actor and local governments support the development of the region as an area of Agro-Industry cluster. In terms of participation, the government showed a high participation and support by facilitating a variety of activities to realize the region of Agro-Industry cluster, while the snacks businessman as the main actor of Agro-industry development of the area did not show a high level of participation.

scholarly journals Toward a Systemic View to Cost Overrun Causation in Infrastructure Projects: A Review and Implications for Research

2017 ◽  
Vol 48 (2) ◽  
pp. 88-98 ◽  
Author(s):  
Dominic D. Ahiaga-Dagbui ◽  
Peter E. D. Love ◽  
Simon D. Smith ◽  
Fran Ackermann
Keyword(s):  
Systems Thinking ◽  
Future Research ◽  
Popular Press ◽  
Cost Overrun ◽  
Infrastructure Projects ◽  
Cost Overruns ◽  
Academic Literature ◽  
Multiple Factors ◽  
High Level ◽  
Systemic View

Infrastructure cost overruns receive a significant amount of attention in the academic literature as well as the popular press. The methodological weaknesses in the dominant approaches adopted to explain cost overrun causation on infrastructure projects are explored in this article. A considerable amount of cost overrun research is superficial, replicative, and thus has stagnated the development of a robust theory to mitigate and contain the problem. Future research should move from single-cause identification and the traditional net-effect correlational analysis to a search for causal recipes through systems thinking and retrospective sensemaking to address the high-level interactions between multiple factors.

scholarly journals A strategic managerial approach to corporate sports hospitality: the case of Belgian football

2020 ◽  
Vol 35 (1) ◽  
pp. 61-75
Author(s):  
Matteo Balliauw ◽  
Thomas Verlinden ◽  
Lisa De Croocq ◽  
Aline Fobe ◽  
Tomas Van Den Spiegel
Keyword(s):  
Ad Hoc ◽  
Academic Research ◽  
Secondary Data ◽  
Holistic Approach ◽  
Primary Data ◽  
Economic Downturn ◽  
Management Process ◽  
Content Type ◽  
Marketing Tool ◽  
High Level

Purpose Corporate sports hospitality (CSH) is a relationship marketing tool whereby customers and other stakeholders are invited by a company buying CSH from a club to attend a sports event. The CSH product involves premium seating and optional services such as catering. This industry has been perceived to be in decline, especially in times of economic downturn. The purposes of this paper are a quantification of the CSH industry’s value and the development of a formal CSH management process for both companies and clubs. Design/methodology/approach A case study from the highest division in Belgian football (soccer) is conducted, involving interviews and quantitative data collection as the primary data source, in addition to secondary data and insights from the literature. As opposed to literature, this paper uses a holistic approach, combining the perspective of the club and the CSH buying company with attention for customers. Findings CSH returns account for an important share of club revenues (>10%), despite the smaller market compared to the American major sports leagues. Since a club experiences the strongest competitive impact from substitutes and other clubs in the league, and CSH is often managed on an ad hoc base, disposing of a formal management process is crucial for both clubs and companies. For companies buying CSH, not only return on investment but also return on other objectives matters. Moreover, CSH is at least as effective to deepen existing business relationships as to create new ones. Research limitations/implications The paper provides clubs and companies with a theoretic background and practical key performance indicators (KPIs) to base their managerial decisions on. Although external validity to other Belgian venue-based sports can reasonably be assumed, translating the findings to other countries or non-venue based sports requires caution. Originality/value Little academic research about the CSH industry is available. Specific KPIs to define objectives and measure output, as well as feedback loops for clubs and companies, are developed. The proposed CSH management process follows the same high-level steps, but with different specific actions per actor, leading to a better understanding of similarities and differences of both processes, and a better co-creation of the CSH event.

scholarly journals Cost Overrun Causative Factors in Road Infrastructure Projects: A Frequency and Importance Analysis

2020 ◽  
Vol 10 (16) ◽  
pp. 5506
Author(s):  
Rodrigo F. Herrera ◽  
Omar Sánchez ◽  
Karen Castañeda ◽  
Hernán Porras
Keyword(s):  
Project Planning ◽  
Cost Overrun ◽  
Infrastructure Projects ◽  
Price Variation ◽  
Cost Overruns ◽  
Road Infrastructure ◽  
Design Changes ◽  
Causative Factors ◽  
Evidence Collection ◽  
Importance Analysis

Road infrastructure projects are essential for a country’s economic and social development. Due to the magnitude, the projects are associated with considerable economic investments that in the case of failure can seriously affect regions’ economies. Despite the importance, roads from different countries are affected by cost overruns, hence, it is essential to identify and analyze the causative factors to focus the search for mitigation solutions. There are several studies focused on the cost factors identification, however, studies are lacking that synthesize and analyze the frequency and importance with which the factors have been reported to obtain a phenomenon overview. Therefore, this paper focuses on analyzing the frequency and importance with which cost overrun factors are reported in road projects. The research method consisted of a systematic review compound of five principal stages: (1) question formulation; (2) searching of relevant documents; (3) document selection; (4) evidence collection, analysis and synthesis; and (5) results’ report. Thirty-eight cost overrun factors were identified and classified into 14 categories. According to the Influence Index, the five most important and frequent cost overrun factors were: (1) failures in design, (2) price variation of materials, (3) inadequate project planning, (4) project scope changes, and (5) design changes.

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