scholarly journals Classification of project cost overruns in the construction industry

2019 ◽  
Vol 11 (5) ◽  
Author(s):  
Vitali Chulkov ◽  
Sergey Sinenko ◽  
Mukhammet Fakhratov ◽  
Mohammad Akbari
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Potential Cost ◽  
Management Tools ◽  
Cost Overruns ◽  
Construction Company ◽  
Construction Companies ◽  
Potential Factor ◽  
Potential Factors ◽  
The Cost

Cost overruns vary evidently almost in every construction project, but their magnitude from project to project. The cost overruns have hit down the economy and the reputation of many Construction Company and hit down the economy and the reputation of many construction companies around the world. Many project management tools are designed to manage the project's budget. However, cost management is still considered poor, as there are many cost overruns in the construction industry. Thus, this work is aimed at identifying and clustering potential factors of the excess cost of construction projects in accordance with their original groups using a thematic approach. Basically, through a literature review, all the potential factors that could cause cost overruns were carefully analyzed before they were grouped into seven (7) groups of underlying factors, namely: project, contract, client, contractor consultant, workforce and external. Each potential factor was clearly explained with some examples based on Malaysian case studies to illustrate the cost overruns scenario. These findings may help in the future to focus on how to mitigate critical potential cost-overs to reduce or overcome its impact on all involved stakeholders.

scholarly journals Training Program in the Construction projects

2020 ◽  
Vol 9 (5) ◽  
pp. 515-522
Keyword(s):  
Training Program ◽  
Construction Industry ◽  
Construction Projects ◽  
System Dynamic ◽  
Cost Overruns ◽  
Efficient Performance ◽  
Comprehensive Development ◽  
Unskilled Workers ◽  
The Cost ◽  
The Impact

Construction is questionably a main part in relative to comprehensive development . It plays an important part in the role in the economy as and in people’s survives over influencing and preserving the environment of the city-region’s constructed, and it is a rising sector. To provide an efficient performance and more development of the economic, there is emphases on optimizing the employees contribution to the goals and areas of the governments. The training significance as a management central part has long been documented by principal writers.This paper aim to find the impact of training in the construction industry and how the training is been underestimate lead in increase the cost by using the simulation technique system dynamic. The research methodology include designing of questionnaire that consist of three items , the first item include , general Training (Training Program), evaluation of on-the-job training and evaluation of training after establishing work and the second part include building the model using system dynamic to show the effect of training on the cost of construction. the results the authors made the following conclusions .The absence of training program has very strong effect as the absence of such program is caused by the finance absence , this is common problem with Iraqi construction industry. The most environment of the Iraqi industry is the absence of the finance from both owner and contractor as they ignore this part and consider unnecessary expenses and this will lead to unqualified engineering or worker in the wrong job .The absence of management mean that , usually the contractor and his staff are working without the supervise or represented from the owner side , which some time mean unskilled workers may be hired which lead to delay of the work and cost overruns .

scholarly journals AHP-Systems Thinking Analyses for Kaizen Costing Implementation in the Construction Industry

Buildings ◽  
2020 ◽  
Vol 10 (12) ◽  
pp. 230
Author(s):  
Temitope Omotayo ◽  
Bankole Awuzie ◽  
Temitope Egbelakin ◽  
Lovelin Obi ◽  
Mercy Ogunnusi
Keyword(s):  
Construction Industry ◽  
Systems Thinking ◽  
Cost Management ◽  
Management Strategies ◽  
Analytic Hierarchy ◽  
Cost Overruns ◽  
Construction Companies ◽  
Cost Planning ◽  
Effective Cost ◽  
The Cost

The incessant reportage of cost overruns and abandoned projects in contemporary literature have accentuated the need for a re-examination of the nature of the cost management strategies deployed to these projects. This study explores the potential of kaizen costing strategy to engender effective cost management within construction project delivery systems in developing countries. Data collected during this study were analysed using the analytic hierarchy process (AHP) and systems thinking approaches to determine the criticality of the factors influencing the effective implementation of kaizen costing. Seven (7) archetypes leading to final causal loop diagram identified the incorporation of the plan–do–check–act approach to project and cost planning, the budgeting system of the construction companies, overhead cost reduction during construction and the overall procurement process. Executing these archetypes will potentially reduce high overhead costs, project cost and time overruns, as well as enhance construction industry sector growth policies and construction organisation corporate governance.

scholarly journals Validation of Impacts of Widely Acknowledged Human Factors in Risk Management of Residential Construction Projects

2018 ◽  
Vol 7 (3.12) ◽  
pp. 1265
Author(s):  
Shaik Salma ◽  
P Santha Rao
Keyword(s):  
Risk Management ◽  
Human Factors ◽  
Construction Industry ◽  
Construction Projects ◽  
Cost Overruns ◽  
Domain Experts ◽  
The People ◽  
The Subject ◽  
Traditional Construction ◽  
The Cost

In the countries like India where one has to still handle a unique blend of operational diversities like human operated traditional construction practices and modern construction technologies, in all construction projects that are highly vulnerable to socio-economic, political, technical and business risks. The involvement of the people with diverse educational, technical, economical and experience backgrounds is an unavoidable fact of the construction industry in India and hence the human factors are going to play a key role in the project to be more prone to risks as well as to mitigate the likely projects risks. Due to lack of robust risk management system, many prestigious construction projects in India have suffered failures and have impacted the country’s GDP and growth because of the gigantic share of the construction industry in the country’s economy. Hence, the risk management in the construction industry has become the subject of concern for the industry practitioners and so the analysis of operational difficulties for the identification and management of construction related risks to minimize the cost overruns, quality deviations and uncertain delays, is remained to be the main objective of the research by the domain experts and engineers for so long. In this paper, an attempt has been made to review all such papers with a specific aim to identify and analyze the human factors that, are highly acknowledged by experts in their works and, can influence / impact the project parameters namely cost, time and quality and validate the results by tracking a real time construction project to draw conclusions.  

scholarly journals INDONESIAN CONSTRUCTION SUPPLY CHAINS COST STRUCTURE AND FACTORS: A CASE STUDY OF TWO PROJECTS / SĄNAUDŲ STRUKTŪRA IR VEIKSNIAI INDONEZIJOS STATYBŲ TIEKIMO GRANDINĖSE: DVIEJŲ PROJEKTŲ ATVEJO TYRIMAS

2012 ◽  
Vol 18 (2) ◽  
pp. 209-216 ◽  
Author(s):  
Muhamad Abduh ◽  
Biemo W. Soemardi ◽  
Reini D. Wirahadikusumah
Keyword(s):  
Supply Chains ◽  
Construction Projects ◽  
Early Stage ◽  
Selection Process ◽  
Cost Structure ◽  
Construction Company ◽  
Construction Companies ◽  
Material Requirement ◽  
Reducing Costs ◽  
The Cost

Studies of Indonesian construction supply chains have been in the early stage. Previous studies have described very well the structures of construction project supply chains. Moreover, one of strategies that have been considered by construction companies for gaining a competitive advantage is to reduce the cost of their supply chains. The research's objective is to identify the cost structure of construction supply chains in Indonesia and factors that could influence it. By knowing these factors, construction companies are expected to be able to determine strategic efforts needed for reducing cost of their construction supply chains. Two construction projects operated by a large construction company were explored as case-studies. Rebar material was chosen for this supply chains study. It was found that the cost of purchasing was very significant. Meanwhile, costs of transportation and inventory were insignificant. It can be concluded that efforts to reduce supply chains cost by reducing costs of inventory and transportation would not be effective. Therefore, factors that could influence the cost of supply chains are related to management of supply chains, such as procurement policy, material requirement planning, supplier qualification, selection process, contract, and supplier development. Santrauka Ankstesniuose Indonezijos statybų tiekimo grandinių tyrimuose labai gerai apibūdintos statybos projektų tiekimo grandinių struktūros. Be to, viena iš strategijų, kurias statybų įmonės nagrinėjo kaip galimybę įgyti konkurencinį pranašumą, buvo išlaidų mažinimas tiekimo grandinėms. Šiuo tyrimu siekiama nustatyti Indonezijos statybų tiekimo grandinių išlaidų struktūrą ir jai įtaką galinčius daryti veiksnius. Žinodamos tokius veiksnius, statybų įmonės turėtų sugebėti nustatyti, kokios strategijos leistų sumažinti išlaidas statybų tiekimo grandinėms. Atvejui tirti pasirinkti du statybų projektai, kuriuos vykdė stambi statybos įmonė. Šiam tiekimo grandinių tyrimui pasirinkta armatūra. Nustatyta, kad pirkimo kaina buvo labai svarbi, o pristatymo ir inventorizacijos išlaidos svarbiomis nelaikytos. Galima daryti išvadą, kad bandymas apriboti išlaidas tiekimo grandinėms, mažinant inventorizacijos ir pristatymo išlaidas, nebūtų veiksmingas. Taigi išlaidoms, kurios skiriamos tiekimo grandinėms, įtaką galintys daryti veiksniai yra susiję su tiekimo grandinių valdymu: pirkimo politika, medžiagų poreikio planavimu, tiekėjų kvalifikacija, atrankos procesu, sutarties sudarymu ir tiekėjų tobulinimo programa.

scholarly journals Application of BIM and 3D Laser Scanning for Quantity Management in Construction Projects

2020 ◽  
Vol 2020 ◽  
pp. 1-10
Author(s):  
Thu Anh Nguyen ◽  
Phong Thanh Nguyen ◽  
Sy Tien Do
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Laser Scanning ◽  
Essential Role ◽  
Industrial Revolution ◽  
Management Process ◽  
3D Laser Scanning ◽  
Economic Sectors ◽  
Construction Companies

The construction industry has played an essential role in the process of modernization and industrialization and it has also been a major factor in determining the development of the infrastructure for other economic sectors. Construction companies consider the measurement of work progress, which often wastes time and has a low resolution, to be one of the most challenging problems faced by project management. Therefore, this research aimed to propose practical solutions by applying recent technological achievements of the 4.0 industrial revolution to improve the efficiency of the quantity management process. By utilizing the advantages and features of a BIM model and 3D laser scanning, this paper proposes that adopting a BIM model and 3D laser scanning has the potential to improve the accuracy and efficiency of the quantity management process. The case study demonstrated some typical tasks to evaluate accuracy and efficiency as well as to showcase the research proposal.

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 Framework of performance measurement practices in construction companies in Egypt

2018 ◽  
Vol 10 (2) ◽  
pp. 7-14 ◽  
Author(s):  
Krzysztof Dziekoński ◽  
Omar Hesham Mohamed Fawzy Ibrahim ◽  
Abdul-Majeed Mahamadu ◽  
Patrick Manu
Keyword(s):  
Performance Measurement ◽  
Performance Assessment ◽  
Performance Management ◽  
Construction Industry ◽  
Dominant Role ◽  
Holistic Approach ◽  
Company Performance ◽  
Construction Company ◽  
Construction Companies ◽  
Performance Measurement Systems

Abstract Construction industry is considered as one of the most important sectors in Egypt. One of the major challenges faced by the industry, however, is the unavailability of suitable performance measurement systems for assessing companies’ performance. Modern performance assessment systems adopt a more universal approach to the measurement of construction company performance as opposed to the traditional project triangle. This paper aims to examine the practice of performance measurement in the Egyptian construction industry. Results show dominant role of in-house developed performance management systems as well as the use of KPIs as a method of performance assessment. The study further reveals that the highest importance is given to measures related to the time of project delivery, quality of works, clients’ satisfaction and profitability. Hence, the traditional project triangle of project’s success is the most prevalent approach to performance evaluation in the construction industry in Egypt. However, a shift towards a more holistic approach to performance assessment in larger companies was observed.

scholarly journals Method of Assessing the Risk of Implementing Railway Investments in Terms of the Cost of Their Implementation

2021 ◽  
Vol 13 (23) ◽  
pp. 13085
Author(s):  
Jan Kowalski ◽  
Mieczysław Połoński ◽  
Marzena Lendo-Siwicka ◽  
Roman Trach ◽  
Grzegorz Wrzesiński
Keyword(s):  
Construction Projects ◽  
Original Method ◽  
Project Managers ◽  
Simple Method ◽  
Construction Companies ◽  
Risk Forecasting ◽  
Specific Object ◽  
Effective Cost ◽  
The Cost ◽  
The Impact

Exceeding the approved budget is often an integral part of the implementation of construction projects, especially those where unforeseen threats may occur. Therefore, each construction investment should contain elements of risk forecasting, mainly in terms of the cost of its implementation. Only a small number of institutions apply effective cost control methods, taking into account the specifics of a given industry. Especially small construction companies that participate in the structure of the implementation of large construction projects as subcontractors. The article presents a method by which it is possible to determine, with certain probability, the final cost of railway construction investments carried out in Poland. The method was based on a reliable database of risk factors published in sources. In this article, the main presumptions of the original method are presented, which take into account the impact of potential, previously recognized, risks specific to railway investments, and enable project managers to relate them to the conditions where the implementation of a specific object is planned. The authors assumed that such a relatively simple method, supported by a suitable computational program, would encourage teams that plan to implement railway projects to use it and increase the credibility of their schedules.

Roles of Contractors in Implementing Quality Assessment System in Construction (QLASSIC) in Construction Projects

2021 ◽  
Vol 15 (S1) ◽  
pp. 53-69
Author(s):  
Mohd Shazreen Seman ◽  
Mohd Reza Esa ◽  
Mohd Reeza Yusof
Keyword(s):  
Quality Assessment ◽  
Construction Industry ◽  
Construction Projects ◽  
Poor Quality ◽  
Technical Committee ◽  
Assessment System ◽  
Construction Companies ◽  
Industry Standard ◽  
The Government ◽  
Questionnaire Surveys

In recent decades, the construction industry has been widely criticized for its lack of efficiency and productivity, and it has been shown that the Malaysian construction industry records poor quality on its projects. To overcome this issue, the Technical Committee on Quality Assessment in Construction with the support of the Construction Industry Development Board (CIDB) has introduced Quality Assessment System in Construction (QLASSIC). QLASSIC is a scoring system that is used to assess and evaluate the performance of construction buildings. It is based on the Construction Industry Standard (CIS 7:2006). Unfortunately, this assessment system had poor implementation since its introduction in November 2006. QLASSIC was not extensively implemented and was taken lightly by the contractors and developers in Malaysia. There are still a huge number of contractors that are not aware of QLASSIC even the big construction companies. Thus, this research is aimed at investigating the contractor’s perspective towards the implementation of QLASSIC in the construction industry in Malaysia. Three objectives are developed to achieve the aim: (1) identification of the needs to implement QLASSIC; (2) investigation of issues and challenges to implement QLASSIC and (3) recommendation of strategies to implement QLASSIC. Structured questionnaire surveys were distributed to the G7 and G6 contractors in the Klang Valley area; which may have or may not have experience in implementing QLASSIC in their projects. The result revealed that majority of the respondents were aware and understand the needs of QLASSIC implementation, but there were still few who were unfamiliar with the QLASSIC. The current level of implementation of QLASSIC in Malaysia is still not satisfactory due to several issues and challenges acting as barriers to its implementation. Therefore, the initiatives from the government are important to promote QLASSIC implementation in the construction industry. By doing this, the contractors would be aware of the implementation of QLASSIC in the construction industry. The significance of this research is that it will assist contractors and other construction players in comprehending the implications and importance of QLASSIC implementation.

An Investigation into the Risk of Construction Projects Delays in the UAE

2014 ◽  
pp. 962-977
Author(s):  
Omayma Motaleb ◽  
Mohammed Kishk
Keyword(s):  
United Arab Emirates ◽  
Construction Projects ◽  
Success Factors ◽  
Project Managers ◽  
Project Delivery ◽  
Extensive Literature ◽  
Construction Companies ◽  
High Concern ◽  
Potential Factors ◽  
Major Criticism

The growing rate of delays in project delivery is considered a major criticism of the construction companies in the United Arab Emirates (UAE). This paper aims to investigate the causes and effects behind the delays pertaining to delivery of construction projects in the UAE. The study is exploratory in nature, and incorporates a pilot questionnaire survey and interviews. An extensive literature review indicates potential factors that have possible effects on construction completion delay. The questionnaire forms were sent to 50 construction companies. Thirty-five (70%) completed responses were received. Analysis of the survey data has revealed that about 42 potential causes and effects of delay relate to various groups of stakeholders. The results show the top fifteen factors relate to clients, project managers and finance aspects. It was found that cost and time overruns are the most significant effects. These results are in partial agreement with previous studies. The paper argues that the key determinant in ensuring project control is on-time project delivery. The results of the study can provide moderate support for a suggested hypothesis, through a framework of project success factors. It should be of high concern to knowledge managers in various roles and decision-makers.

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