scholarly journals Assessment of delay and cost-overrun in federal road construction project in Abuja

2020 ◽  
Vol 11 (4) ◽  
pp. 1184
Author(s):  
Ashem Emmanuel Egila ◽  
Oluwaseun Abdulakeem Balogun ◽  
Saheed Olanrewaji Yusuf
Keyword(s):  
Construction Projects ◽  
Construction Project ◽  
Road Construction ◽  
Mean Value ◽  
Cost Overrun ◽  
Related Factors ◽  
Cost Overruns ◽  
Factors Influencing ◽  
Importance Index ◽  
The Government

Poor road infrastructure in Nigeria is a significant challenge, just like poverty, insecurity, and unemployment. The construction of road in the country is characterized by numerous challenges throughout the project life cycle. Some of these challenges are project delay and cost overrun, corruption and fraud, faulty contractual process among others. Objectives of this study are to identify factors influencing delays and cost overruns in road construction project, to rank these factors base on their impacts and importance, and to suggest conservative ways to address the future challenges that can result from delays and cost overruns of future road construction projects. The research instruments include in-depth literature review, fieldwork, questionnaire administration, and interview. Inferential statistics such as Relative importance index (RII) and Mean Value techniques were used to analyze collected data. The result of the study identified factors influencing delays and cost overruns in road construction projects as; man related, money-related, machine-related, material related, environmental-related, and method related factors. Analysis using RII and MV ranked man and money related as the highest factors for delay and cost overrun respectively. Hence, the research recommends that the Government should create an enabling environment, making suitable policy for the construction company to operate.

scholarly journals Causes of Costs Overrun in Road Construction Project in Oman

2021 ◽  
Vol 10 (3) ◽  
Author(s):  
Osama Salim Al Adawi ◽  
Hussin Yahia
Keyword(s):  
Construction Projects ◽  
Negative Impact ◽  
Construction Project ◽  
Road Construction ◽  
Developed Countries ◽  
Critical Issue ◽  
Cost Overrun ◽  
Cost Overruns ◽  
Road Projects ◽  
And Performance

Cost overrun is a common phenomenon in construction projects of any country, be it in developing or developed countries. This issue is a critical issue that impacts a project's success. It, therefore, needs serious attention from all the participants in the construction project to keep the projects in safe mode, to be completed within its limited cost, time, and performance. Cost overrun has a negative impact on construction project performance, which is because the construction industry is vast and complex. Any difficulty occurring during the project's life cycle leads to other problems in various parts of the project. Studies by many researchers’ cost overruns by literature review, and according to their studies suggested the most cost overrun causes. The aim of this study is to identify the most critical factors leading to cost overruns on road projects in Oman, and then provide suggestions to resolve them.

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 Factors Influencing Cost Overrun and Delay with Their Risks in Construction Management

2020 ◽  
Vol 9 (3) ◽  
pp. 439-443
Keyword(s):  
Construction Management ◽  
Construction Projects ◽  
Previous Literature ◽  
Cost Overrun ◽  
Cost Overruns ◽  
Productivity Level ◽  
Construction Companies ◽  
Factors Influencing

Cost overrun and delay are the most important factors which affect the rate of progress in construction industries. There are numerous Risks are involved in cost and schedule overrun which leads to unprofitable situation or dropping the project. Previous literature studies are mainly focused only on cost overrun and delay but they do not deal with their risks which is important to study. This study is to assess the factors influencing time and cost overruns on construction projects and their risks also. The objectives of the study were achieved through valid questionnaire. The questionnaires are collected over 40 construction companies. From this survey, identify and ranking the various elements which are responsible for the inflation of cost and schedule overrun using analytical software like SPSS. And discuss about the significant values obtained from the collecting data and recommendation and mitigation ideas from the ranking of overrun factors. The significant value should be more than 0.05 and from our analysis most of the factors are above that value. The study clarified that incorrect estimates and low productivity level of labors highly contributes to overrun in construction management. It will leads to unprofitable situation, so proper scheduling and better management will rectify these problems.

scholarly journals Factors Militating Against Prompt Delivery of Construction Projects in Lagos Megacity, Nigeria: Contractors’ Perspective

2017 ◽  
Vol 8 (3) ◽  
pp. 233-242 ◽  
Author(s):  
Ayodeji Olubunmi Ogunde ◽  
Odje Emmanuel Dafe ◽  
Gbemisola Ajoke Akinola ◽  
Kunle Elizah Ogundipe ◽  
Olayinka Clement Oloke ◽  
...  
Keyword(s):  
Key Management ◽  
Construction Projects ◽  
Construction Project ◽  
Project Managers ◽  
Cost Overrun ◽  
Flow Problems ◽  
Management Personnel ◽  
Importance Index ◽  
Lagos State ◽  
Causes Of Delays

Abstract Delay is a common issue faced in the construction industry all over the world especially in developing countries. The aim of this study is to evaluate factors causing delays and their effects on construction projects in Lagos Mega City, Nigeria from the contractors’ perspective. It is predicated on the incessant delay experienced by contractors on construction projects. Purposive sampling method was adopted for the study;. Quantitative data was obtained by administration of One hundred (100) structured questionnaires distributed to contractors of construction project sites in Lagos State and Qualitative data was obtained from interview of key management personnel of the companies and journals. Ranking analysis of the 33 major causes of delays identified through literature review using Relative Importance Index (RII) showed that cash flow problems during construction (RII=4.81), clients’ financial difficulties (RII=4.47) and poor procurement (RII=4.40) were the most importantt causes of delays in construction project sites in Lagos State, Cost overrun (RII=4.92), late payment (RII=4.59) and project extension (RII=4.45) were predominant effects of delay in construction project. Hypotheses testing on relationship between shortage of skilled labour, improper equipment during construction and delay in construction project using One-Way ANOVA showed positive correlation. For improved efficiency and effective project delivery in the industry, proper payment from client (RII=4.78), competent project managers (RII=4.64), the use of experienced subcontractors and suppliers (RII=4.48) should be encouraged to mitigate against delay in construction projects.

scholarly journals Simulation Modeling of Cost Overrun in Construction Project in Ethiopia

2019 ◽  
Vol 8 (4) ◽  
pp. 12685-12691
Keyword(s):  
Simulation Modeling ◽  
Construction Projects ◽  
Construction Project ◽  
Simulation Models ◽  
Simulation Method ◽  
Cost Overrun ◽  
Cost Overruns ◽  
Important Index ◽  
Questionnaire Surveys ◽  
Different Parts

Cost is an essential part of any construction project. It was observed that cost overrun is one of the most frequently occurring issues in construction projects of Ethiopia and it is more severe in different parts of the country. The aim of this research has identified the factors that influence cost overruns of construction projects, quantified the percentage of identified factors, established probability distribution of identified factors and develop simulation modeling of cost overrun. The study was conducted based on the desk study and questionnaire survey. Questionnaire surveys were analyzed by using Relative Important Index (RII) ranking and significance of data checked by using a t-test at a 95% confidence level. Based on the desk study of 19 projects, a simulation model of cost overrun was developed by using the Monte Carlo simulation method. Simulation models showed a higher frequency of cost overrun occurring up to 10%. This indicates that the actual cost of most construction projects runs up to 10 % over the budgeted cost of work performed.

scholarly journals A MODEL FOR EVALUATING THE RISK EFFECTS ON CONSTRUCTION PROJECT ACTIVITIES

2019 ◽  
Vol 25 (7) ◽  
pp. 687-699 ◽  
Author(s):  
Usama Hamed Issa ◽  
Salah Attia Mosaad ◽  
Mohamed Salah Hassan
Keyword(s):  
Membership Function ◽  
Time Delays ◽  
Construction Projects ◽  
Construction Project ◽  
Cost Overrun ◽  
Analysis Model ◽  
Expected Cost ◽  
Cost Overruns ◽  
Proposed Model ◽  
The Cost

Cost overruns and time delays are considered to be very important challenges for the majority of construction projects. These challenges are typically attributed to their associated risks. Due to the risky and uncertain nature of construction projects, an increasing amount of attention is given to estimating and overcoming cost overruns and time delays. New techniques are being developed to help project managers to contractually complete projects within cost and time constraints. The objective of this study was to develop a new qualitative and quantitative risk analysis model that can be employed for construction projects. The proposed model, which is based on a fuzzy logic tool, consists of two modules for assessing risk factors that affect the main construction activities and computing the expected cost overruns and time delays that are associated with these risks. Using numerous logical rules, the model applies the probability of occurrences and impacts of the risks on the cost and time of the main activities. The Spearman and Kendall correlation coefficient tests are applied to verify and select a suitable membership function. Using four proposed membership functions, the results of these tests confirmed that the triangle membership function is suitable for the model. The model is verified by application to HVAC system activities in two actual construction projects, which serve as case studies. Two different methods are proposed and applied to quantify the cost overruns and time delays. The first method is based on determining the cost overruns and time delay values for each activity according to their weight in the system. Triple premise rules are proposed and applied in the second method, which is established to relate all activities. The results from the second method are more accurate compared with the first method based on actual data from the case study projects. In addition, the results demonstrated that the proposed model can be used to quantify the expected cost overrun and time delays in construction project activities and can be generalized and implemented in different construction activities.

Investigation of Cost-Influencing Factors Potentially ‎Controllable by Main Contractors in Construction Projects in ‎Iraq

2020 ◽  
Vol 38 (7A) ◽  
pp. 1069-1076
Author(s):  
Layth T. Ali ◽  
Raid S. Abid Ali ◽  
Zeyad S. M. Khaled
Keyword(s):  
Construction Projects ◽  
Project Managers ◽  
Cost Overrun ◽  
Public And Private ◽  
Importance Index ◽  
Labor Recruitment ◽  
Supply Planning ◽  
Major Factors ◽  
And Control ◽  
The Impact

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.

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.

scholarly journals Identification of geodetic risk factors occurring at the construction project preparation stage

2019 ◽  
Vol 9 (1) ◽  
pp. 14-17 ◽  
Author(s):  
Magdalena Kowacka ◽  
Dariusz Skorupka ◽  
Artur Duchaczek ◽  
Paweł Zagrodnik
Keyword(s):  
Risk Factors ◽  
Construction Projects ◽  
Expert Knowledge ◽  
Construction Project ◽  
Road Construction ◽  
Construction Process ◽  
The Road ◽  
Initial Stage ◽  
Preparation Stage

AbstractThe work contains information on the implementation of surveying works in the road construction process. The aim of the research was to identify geodetic risk factors occurring at the stage of preparation of a construction project, the presence of which can greatly disrupt the undertaking such as the road construction. The research was carried out on the basis of expert knowledge, documentation obtained from various road construction projects and the analysis of disturbances at the initial stage of works.

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.

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