scholarly journals A BESPOKE APPROACH FOR RELATING MATERIAL WASTE TO COST OVERRUN IN THE CONSTRUCTION INDUSTRY

2017 ◽  
Vol 1 (1) ◽  
pp. 39-52
Author(s):  
Ibrahim Saidu ◽  
W Shakantu ◽  
A Adamu ◽  
I Anugwo
Keyword(s):  
Construction Industry ◽  
Construction Material ◽  
Methodological Approach ◽  
Construction Project ◽  
Project Managers ◽  
Cost Overrun ◽  
Project Cost ◽  
Cost Overruns ◽  
Project Completion ◽  
Final Project

The problems of material waste and cost overruns are common in the construction industry. These problems occur at different stages of a construction project, from planning, design to project completion. The argument on how to eliminate cost overrun has been on-going for the past 70 years as on-site wastage of materials leads to increase in the final project cost. This paper examines the relationship between the causes of material waste and those of cost overrun at the pre-contract and post-contract stages of a project. The desktop methodological approach was firstly adopted in comparing the causes of material waste and those of cost overruns from the literature, in order to determine the possible relationship. Subsequently, interviews were purposively conducted with construction professionals within Abuja, Nigeria, in order to verify the literature based information. The result reveals that all the causes of material waste also cause cost overrun at the pre-contract and the post-contract stages of a project. 96.88% and 81.81% of the causes of cost overrun also cause material waste at the pre-contract and post-contract stages respectively. Other causes which are not related are mostly, the micro-economic and macro-economic factors. These results are not different from those of the interviews conducted with professionals and summarised in the tick box. It was also found that to achieve Effective Construction Material Waste Management (ECMWM) for any construction project, material waste must be controlled at its sources and causes, and at different stages of a project. Based on these findings, it can be concluded that effective management of material waste would translate into a reduction in the level of project cost overrun. The study recommends that construction-project managers, as well as the construction practitioners should encourage the management of material-waste causes, as it has the potential to minimise cost overrun for projects. 

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 Understanding the Hiring Issues of the Craft Workers in the UAE’s Construction Labor Market: Project Managers Perspective

Buildings ◽  
2021 ◽  
Vol 12 (1) ◽  
pp. 26
Author(s):  
Mohammed Albattah ◽  
Amna Shibeika ◽  
Muhammad Sami Ur Rehman
Keyword(s):  
Labor Market ◽  
Construction Industry ◽  
United Arab Emirates ◽  
Construction Projects ◽  
Construction Project ◽  
Project Performance ◽  
Project Managers ◽  
Project Completion ◽  
Labor Issues

The construction industry in the United Arab Emirates (UAE) is faced with negative project performance, including low productivity, higher costs, delays in project completion, and defects during construction. One of the main reasons for these issues is the engagement of unskilled craft workers. Despite these labor issues, demand for construction projects in the UAE has been explosively increasing, in part due to Dubai winning the hosting of Expo 2020, which has given rise to an unprecedented demand for skilled construction craft workers. This study aimed to investigate the views and experiences of construction project managers regarding the reasons and challenges associated with the hiring of skilled craft workers in the construction labor market of the UAE. To fulfill the study purpose, the authors conducted structured open-ended interviews with UAE construction project managers. The results revealed several reasons for hiring craft workers despite a clear lack of qualifications and suggest some potential solutions.

scholarly journals COVID-19 pandemic impact: an identification of the cause of cost overrun in construction project

2021 ◽  
Vol 331 ◽  
pp. 01014
Author(s):  
Yervi Hesna ◽  
Jati Sunaryati ◽  
Ayu Hidayati
Keyword(s):  
Construction Industry ◽  
Construction Project ◽  
Health And Safety ◽  
Cost Overrun ◽  
Project Cost ◽  
Heavy Equipment ◽  
Two Factors ◽  
Implementation Time ◽  
The Cost ◽  
The Impact

The paper provides a thorough examination of the impact of COVID-19 on increasing the cost of the construction project. The pandemic of COVID-19 had disrupted the financial and operational of the construction industry. Many projects have been closed and suspended, and this situation has caused great uncertainty in the construction industry. Even though the Instruction of the Minister of Public Work No. 2/2020 issued March 27, 2020, stated that construction activities in Indonesia could continue work. However, it still believes COVID-19 can lead to poor project cost performance. The study used a literature review to explore the factors contributing to the increase in project cost. A case study in the hotel construction project is used to test the factors. The research found six factors have a frequency of occurrence for each cause of cost overrun, namely labor, material, implementation time, project financial aspects, estimated cost, and occupational health and safety. The case study’s two factors are not the cause of the cost overrun based on the interviewee’s answer: heavy equipment and overhead. This paper also explains the mechanism to address cost overrun continue in construction work.

scholarly journals Integrated model for the stressors, stress, stress-coping behaviour of construction project managers in the UK

2018 ◽  
Vol 11 (3) ◽  
pp. 761-782 ◽  
Author(s):  
Shamil George Naoum ◽  
Carlos Herrero ◽  
Charles Egbu ◽  
Daniel Fong
Keyword(s):  
Construction Industry ◽  
Structural Equation Modelling ◽  
Structural Equation ◽  
Construction Project ◽  
Project Managers ◽  
Stress Coping ◽  
Content Type ◽  
Equation Modelling ◽  
And Performance ◽  
The Impact

Purpose It is axiomatic that construction is a fast-paced and competitive industry, which goes hand in hand with many construction professionals suffering from stress including construction project managers (C-PMs). The role of C-PMs is crucial to achieving project success as they are responsible for planning the project, organising human resources, controlling operations and the budget, and forecasting probable difficulties. The purpose of this paper is to investigate the causal relationships between stressors, stresses, stress-coping behaviours and their impact on the performance of C-PMs. Design/methodology/approach To investigate the relationships between stress and performance among C-PMs, a questionnaire was designed based on the extensive literature, and was sent to 150 C-PMs who had amassed at least five years’ direct working experience in the construction industry. A total of 44 completed questionnaires were returned. Correlation analysis and structural equation modelling were employed to understand the integrated relationships between these factors. Based on the data collected and analysis of the results, an integrated structural equation model of the stresses and performances of C-PMs was developed using AMOS version 22.0. Findings The results of structural equation modelling reveal the following: burnout is the type of stress that has the highest impact on the performance of C-PMs, being detrimental to their interpersonal performance (IPP) and positive for their organisational performance (OP), whereas physiological stress worsens the task performance of C-PMs and objective stress improves their IPP. The most active stressor towards the performance of C-PMs is “workgroup cooperation”, which has an impact on the IPP in a positive way but is detrimental to the OP. Career-developing environment, poor organisational structure and role conflict affect both stress and performance together. Originality/value This study provides a comprehensive investigation into the impact of various types of stress on the performances of C-PMs. The result constitutes a significant step towards the stress management of C-PMs in the dynamic and stressful construction industry.

scholarly journals Delays and Cost Overruns Causes During Construction of Palm Oil Refinery Projects

2018 ◽  
Vol 203 ◽  
pp. 02004 ◽  
Author(s):  
Muhammad Sani Abdullah ◽  
Wesam S Alaloul ◽  
Mohd Shahir Liew ◽  
Bashar S Mohammed
Keyword(s):  
Construction Industry ◽  
Palm Oil ◽  
Developing Nations ◽  
Project Performance ◽  
Oil Refinery ◽  
Cost Overrun ◽  
Cost Overruns ◽  
Planning And Scheduling ◽  
Important Index ◽  
Common Problems

Delays and cost overruns are obviously common problems in the construction industry in several developed and developing nations. The purpose of this study is to identify factors cause delays and cost overruns in the construction of palm oil refinery projects in Malaysia. A questionnaire survey of a randomly selected sample was filled by 89 respondents. The questionnaire included 179 factors which classified into 13 groups. The degree of importance of the delays and cost overrun factors were evaluated and ranked by importance degree, based on the viewpoints of stakeholders. The data was analytically investigated by descriptive statistic methods and Relative Important Index (RII). The results of RII showed that Delays in subcontractor’s work, Lack of subcontractor skill, and Poor/inadequate planning and scheduling with RII 0.78, 0.77, and 0.75, respectively, are the most important causes. These causes represent the baseline margin for project management of palm oil refinery construction and development. According to these results, it is suggested that: project client should collaborate with contractors and simplify payments procedures to mitigate delays; coordinate continuously and enhance the association among project stakeholders are obligatory in order to improve the project performance.

scholarly journals An Assessment of Material Waste Disposal Methods in the Nigerian Construction Industry

Recycling ◽  
2019 ◽  
Vol 4 (1) ◽  
pp. 13 ◽  
Author(s):  
Olabode Ogunmakinde ◽  
William Sher ◽  
Kim Maund
Keyword(s):  
Waste Management ◽  
Construction Industry ◽  
Waste Disposal ◽  
Construction Material ◽  
Cost Overrun ◽  
Cross Sectional Survey ◽  
Environmental Implications ◽  
Cross Sectional ◽  
Construction Firms ◽  
Regulatory Policies

The construction industry is faced with many challenges, among which is waste management. Aside from the fact that wastage contributes to time and cost overrun, it also has environmental implications in the form of pollution. However, the industry has the capacity to effectively manage waste, from generation to disposal. All stages of the management process are important, but scholars and governments have provided the final step, being disposal, unabated attention in order to ensure effective management. Potential waste disposal methods, including incineration, burning, landfilling, recycling, reuse, open dumping, pyrolysis, and shredding have emerged from the literature around the globe. Despite various waste minimisation and sustainable disposal options that are available, construction material waste is still increasing in Nigeria, while disposal remains a major issue for firms and government. Therefore, this study assesses disposal methods among construction firms to determine whether there is a relationship between their practices towards waste disposal. The research followed a concurrent triangulation design in a cross sectional survey, while data were collected via a convergent parallel mixed methods. The quantitative phase employed a structured questionnaire to collect data from 243 building construction firms, while the qualitative phase involved semi-structured interviews with 65 professionals from 10 on-going construction projects in Lagos, Nigeria. The research revealed that landfilling is the most common method of waste disposal, which is closely followed by reuse as backfill and recycling. In addition, the study revealed no association between company’s ownership statuses, age, project specialisation, and disposal methods, except company’s size. In conclusion, the study establishes the need for regulatory policies, such as site waste management plan (SWMP), pay as you throw (PAYT), and landfill ban, which would minimise material waste and divert them from landfills. Recycling and reuse are recommended as sustainable approaches for waste disposal.

Regression Modelling for Prediction of Construction Cost and Duration

2016 ◽  
Vol 857 ◽  
pp. 195-199 ◽  
Author(s):  
Nivea Thomas ◽  
Anu V. Thomas
Keyword(s):  
Regression Models ◽  
Critical Path ◽  
Real Data ◽  
Project Managers ◽  
Statistical Regression ◽  
Statistical Process ◽  
Project Cost ◽  
Cost Overruns ◽  
Building Projects ◽  
The Relationship

Construction investments are sensitive to time and cost overruns. Delay and cost escalation are considered two threats to project success. The project objective is to develop a model to predict project cost and duration based on historical data of similar projects. Statistical regression models are developed using real data of building projects. The methodology is adopted in 3 steps: a) Data collection b) Statistical analysis using Statistical Package for Social Sciences (SPSS) software c) Interpretation of results. The real data of cost and duration of 51 building projects have been collected. In statistics, regression analysis is a statistical process for estimating the relationships among variables. It includes many techniques for modelling and analyzing several variables, when the focus is on the relationship between a dependent variable and one or more independent variables. The analysis is done using SPSS developed by IBM Corporation. The Regression models have been developed using the data collected from Noel Builders, Kakkanad, Ernakulam to predict the project cost and duration. The developed models are validated using split sample approach. The model outputs can be used by project managers in the planning phase to validate the scheduled critical path time and project budget.

Latent geotechnical pathogens inducing cost overruns in highway projects

2017 ◽  
Vol 22 (3) ◽  
pp. 269-285 ◽  
Author(s):  
Alolote Ibim Amadi ◽  
Anthony Higham
Keyword(s):  
Niger Delta ◽  
Best Practice ◽  
Methodological Approach ◽  
Cost Overrun ◽  
Delta Region ◽  
Cost Overruns ◽  
Highway Projects ◽  
Content Type ◽  
Niger Delta Region ◽  
Geotechnical Risk

Purpose This paper aims to investigate the statistical validity of geotechnical risk factors in accounting for cost overruns in highway projects. The study hypothesises that “latent pathogens” because of mismanaged geotechnical risk, which lay dormant in organisational practices of highway agencies, trigger cost overruns. Design/methodology/approach To test this hypothesis, cost and geotechnical data gathered for 61 completed highway projects, executed in the Niger Delta, recording unusually high cost overruns, along with qualitative data from 16 interviews with the project commissioners, were comprehensively analysed via regression modelling, to statistically explain recorded cost variance. Findings The results provide empirical evidence supporting a cause–effect relationship between the extent of cost overrun and key geotechnical factors. It is suggested that positive changes made in the geotechnical practices of the highway agencies will produce an expected exponential decrease in the level of cost overruns recorded in highway projects. Research limitations/implications The study is limited to explaining the propagation of unusually high cost overruns in the geologic setting of the Niger Delta region of Nigeria. As such there is a need to test the generalisability of the theory presented. Practical implications The emergent view of geotechnical practice calls for further research, necessary to align geotechnical best practice into highway project delivery in the Niger Delta region. Originality/value The study used a robust methodological approach to understanding the propagation of cost overruns in highway projects, based on a characterisation of geotechnical intricacies, which is unprecedented in cost overrun research.

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.

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