scholarly journals Significance and Analysis of Time and Cost Overrun in the Construction Industry of Mumbai

2021 ◽  
Vol 9 (11) ◽  
pp. 295-310
Author(s):  
Priyesh Mulye
Keyword(s):  
Risk Factors ◽  
Construction Industry ◽  
Construction Projects ◽  
Performance Standards ◽  
Construction Cost ◽  
Cost Overrun ◽  
Potential Development ◽  
The World ◽  
Very High ◽  
Total Construction Cost

Abstract: The occurrence of time and cost overrun has become quite significant in a majority of construction projects in India, which is negatively affecting the GDP and potential development of nation. As per the statistics of project cost and duration in March 2012, 179 projects out of 555 projects of worth 150 Crore INR have been facing cost and time overrun and others are at the very high risk, with the total construction cost overrun of 1.23 Lakh Crore INR. (Times, 2013) The time and cost overrun of the construction projects results in overextension of the time and finance of the client which may lead to entire failure of the project, unfinished project, abandoned project or reduction in the performance standards of the project. This condition depicts the requirement of the study and analysis of the causes or risk factors for time and cost overrun, and solutions and strategies for mitigation of cost and time overrun. The present research involves the study and analysis of the various risk factors related to time and cost overrun; assessment of the overruns in the construction projects of Mumbai, India and other parts of the world; identification and analysis of the leading causes for time and cost overrun in the construction projects of Mumbai; identification of potential solutions; and preparation of an effective mitigation model for overruns in construction projects of Mumbai

scholarly journals CRITICAL FACTORS VARYING CONSTRUCTION COST

2009 ◽  
Vol 12 (1) ◽  
pp. 104-117
Author(s):  
Tam Thi Minh Nguyen ◽  
Thi Hao Cao
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Multiple Linear Regression Model ◽  
Construction Cost ◽  
Ho Chi Minh City ◽  
Cost Overrun ◽  
Key Factors ◽  
Industry Sectors ◽  
The Relationship ◽  
Chronic Problem

Construction industry is considered to be one of the most important industries in Vietnam's economy. But many construction industry sectors have been experienced chronic problem as cost overrun. Therefore, a conceptual model of factors influencing construction cost was developed to determine the key factors that cause difference between budget cost and actual cost and some solutions are recommended to be applied to achieve the best outcome of cost. The result of analyzing 216 construction projects completed from 2002 to 2007 by companies located in Ho Chi Minh City indicated 6 main factors varying construction cost: project planners, project executives, economics, political, natural environment, fraudulent and lost. The results of multiple linear regression model confirmed the relationship between these above 6 factors and construction cost with the theories are supported at the statistically significant level of 0.05.

Analysis of Time and Cost Overrun in Malaysian Construction

2012 ◽  
Vol 452-453 ◽  
pp. 1002-1008 ◽  
Author(s):  
Chidambaram Ramanathan ◽  
Narayanan Sambu Potty ◽  
Arazi B Idrus
Keyword(s):  
Risk Factors ◽  
Time Delay ◽  
Construction Industry ◽  
Construction Projects ◽  
Project Performance ◽  
Related Question ◽  
Cost Overrun ◽  
Construction Stage ◽  
Theoretical Domain ◽  
Related Group

The construction industry in Malaysia is very important for creating employment, both directly and indirectly. It faces two repeated problems during the construction stage: slippage of project-schedules, i.e. time overrun and overrun of project cost; to the dislike of owners, contractors and consultants. This paper studies the time delay and cost overrun factors for Design and Build D&B projects in Malaysia. A Questionnaire was used to collect data from practitioners and analyse the responses and rank the factors and groups on overall view of the contracting parties. Identified risk factors from the theoretical domain were used to prepare 79 time related question and 18 cost related question categorized in 9 groups and 1 group respectively. Total of 136 respondents recorded their ratings to the factors in the questionnaire. Labour-related group has the top 1 rank with RII 0.684. The results can be used as a guideline to successfully handle construction projects in Malaysia; contributing for better project performance and lead to positive risks, opportunities.

Cost-risk contingency framework for managing cost overrun in metropolitan projects: using fuzzy-AHP and simulation

2020 ◽  
Vol 13 (5) ◽  
pp. 1121-1139 ◽  
Author(s):  
Farman Afzal ◽  
Shao Yunfei ◽  
Danish Junaid ◽  
Muhammad Shehzad Hanif
Keyword(s):  
Risk Factors ◽  
Risk Analysis ◽  
Construction Cost ◽  
The Body ◽  
Cost Overrun ◽  
Content Type ◽  
High Uncertainty ◽  
Total Construction Cost ◽  
Cost Risk ◽  
Contingency Framework

PurposeRisk analysis plays a vital role in controlling and managing cost overruns in complex construction projects, particularly where uncertainty is high. This study attempts to address an important issue of cost overrun that encountered by metropolitan rapid transit projects in relation to the significance of risk involved under high uncertainty.Design/methodology/approachIn order to solve cost overrun problems in metropolitan transit projects and facilitate the decision-makers for effective future budgeting, a cost-risk contingency framework has been designed using fuzzy logic, analytical hierarchy process and Monte Carlo simulation.FindingsInitially, a hierarchical breakdown structure of important complexity-driven risk factors has been conceptualized herein using relative importance index. Later, a proposed cost-risk contingency framework has investigated the expected total construction cost in order to consider the additional budgeted cost required to mitigate the risk consequences for particular project activity. The results of cost-risk analysis imply that poor design issues, an increase in material prices and delays in relocating facilities show higher dependency and increase the risk of cost overrun in metropolitan transit projects.Practical implicationsThe findings and implication for project managers could possibly be achieved by assuming the proposed cost-risk contingency framework under high uncertainty of cost found in this research. Furthermore, this procedure may be used by experts from other engineering domains by replacing and considering the complex relationship between complexity-risk factors.Originality/valueThis study contributes to the body of knowledge by providing a practical contingency model to identify and evaluate the additional risk cost required to compute total construction cost for getting stability in future budgeting.

scholarly journals Impact of Cost Overrun Factors in Constructing Apartments in Tamil Nadu

2020 ◽  
Vol 9 (3) ◽  
pp. 456-459
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Tamil Nadu ◽  
Cost Overrun ◽  
Planning Commission ◽  
Site Factor ◽  
The World ◽  
Industrial Projects ◽  
Residential Projects ◽  
Significant Factors

Construction industry is more planned and resource driven industry in the world. As this industry is vast, it offers more commercial facilities projects, residential projects, and industrial projects. In addition to the infrastructure sector, there are also other areas which require growth as well. According to Working Group of Planning Commission 2012, the present housing scarcity is anticipated as 18.58 million houses. Usually, construction industries visages cost overrun when implemented and this issue generate immediate impact on country’s economy and construction stakeholders. Hence this study aims to examine the most significant factors that affect cost overrun in constructing apartments in Tamil Nadu. The study found that from the perspective of civil workers, inadequate number of equipment’s, contractors faces financial complexities and cash flow at site factor, labour absenteeism, alteration in material specification, lack of dexterity between parties, and retardation in decision making are the most significant factors that influences cost overrun in construction projects.

Inhibiting Factors of Cost Performance in UAE Construction Projects

2020 ◽  
Vol 11 (2) ◽  
Author(s):  
Ahmed Salem Ahmed Marey Alhammadi ◽  
◽  
Aftab Hameed Memon ◽  
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Past Research ◽  
Cost Overrun ◽  
Index Method ◽  
Cost Performance ◽  
Factors Affecting ◽  
Inhibiting Factors ◽  
Critical Problems ◽  
Structured Questionnaire

UAE construction industry frequently faces poor cost performance which commonly known as cost overrun problem. This problem is resulted from several factors and it is important to identify these cost overrun factors in order to avoid and minimize it. Hence, this paper focused on determined the relevancy of factors affecting cost performance in construction projects of UAE. Through a review of past research works conducted globally, 27 factors of cost overrun were listed and used for developing a structured questionnaire. A survey was conducted with 33 practitioners from client, consultant and contractors organizations involved in handling construction projects in UAE. The respondents were requested to state their perception regarding the relevancy of each of the factors that was perceived in context with cost overrun issue using 5-points Likert scale. The responses were analysed using average index method and the results found that all the 27 factors are relevant with construction industry of UAE in causing cost overrun. These factors can be used for further investigation to uncover critical problems of cost overrun.

scholarly journals Effective Selection of Resources for Construction using Program Tool

2020 ◽  
Vol 9 (3) ◽  
pp. 2927-2931
Keyword(s):  
Construction Industry ◽  
Resource Selection ◽  
Construction Projects ◽  
Cost Overrun ◽  
Cost Performance ◽  
Programming Tool ◽  
Effective Selection ◽  
Selection Factor ◽  
Selection Of ◽  
Indian Scenario

In the Indian scenario construction industry facing a major problem is cost and time overrun. Effective time performance and cost performance are very important to execute the project in a successful manner by keeping them within the prescribed schedule and cost. Overall cost and duration of construction projects affected by the effective resource selection factor. This paper's objective is to rectify the improper selection of resources by a programming tool. Field survey and codebook study did collect the needed data to feed in the programming tool. The prepared tool gets distributed and making to access by every stakeholder of construction projects. This may result in the selection of construction resources as effectively. The term cost overrun in the resource part will be reduced.

Risk analysis of construction of administration projects using Bayesian networks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Osama ◽  
Aly Sherif ◽  
Mohamed Badawy
Keyword(s):  
Risk Factors ◽  
Life Cycle ◽  
Risk Analysis ◽  
Construction Industry ◽  
Construction Projects ◽  
Causal Relationships ◽  
Content Type ◽  
Project Life Cycle ◽  
Project Objectives ◽  
Project Life

Purpose This paper aims to enlighten the importance of the risk management process which is considered as a major procedure to effectively handle the potential inherent risks in the construction industry. However, most traditional risk analysis techniques are based on theories that deal with each risk factor as an independent, which does not take into consideration the causal relationships between risk factors. Design/methodology/approach This study aspires to identify the overall risk of the administrative construction projects in Egypt and to recognize the most influencing risk factors through the project life cycle by using Bayesian belief networks (BBN). Through a review of the literature, 27 risk factors were identified and categorized as the most common risk factors in the construction industry. A structured questionnaire was performed to estimate the probability and severity of these risks. Through site visits and interviews with experts in the construction field, 200 valid questionnaires were collected. A risk analysis model was developed using BBNs, then the applicability of this model was verified using a case study in Egypt. Findings However, the outcome showed that critical risks that manipulate administrative construction projects in Egypt were corruption and bribery, contractor financial difficulties, force majeure, damage to the structure and defective material installation. Practical implications The proposed study presents the possibilities available to the project parties to obtain a better forecast of the project objectives, including the project duration, total project cost and the target quality by examining the causal relationships between project risks and project objectives. Originality/value This study aspires to identify the overall risk of the administrative construction projects in Egypt and to recognize the most influencing risk factors through the project life cycle by using BBNs.

scholarly journals Factors influencing decisions on delay claims in construction contracts for Indian scenario

2014 ◽  
Vol 14 (1) ◽  
pp. 32-44 ◽  
Author(s):  
Nitin Balkrishna Chaphalkar ◽  
K. C. Iyer
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Decision Makers ◽  
Infrastructure Development ◽  
Court Cases ◽  
Cost Overrun ◽  
Root Cause ◽  
Delay Claims ◽  
Indian Scenario ◽  
Probing Questions

  Construction industry in India is second largest next to agriculture. In current era of infrastructure development construction projects occupy a key position. In any construction project contract time and cost overrun is a common feature, which gives rise to claims leading to disputes. These disputes if not handled properly tend to consume time and money of all parties to the contract. To resolve the dispute in optimum time, it is essential to understand the root cause of disputes as early as possible. Hence there is a need of analyzing the disputes scientifically.  The present study reveals from the study of arbitration awards that the causes for delay claims can be grouped in domains and the probable decisions to the disputes can be traced through the probing questions considered by decision makers. This paper attempts to identify questions related to disputes for Indian scenario through literature, arbitration awards, court cases and discussions with professionals.

Developing a Model for Risk and Responsibility Management Share Amongst Stakeholders Consortium in Construction Projects

2013 ◽  
Vol 684 ◽  
pp. 639-643 ◽  
Author(s):  
Alireza Ghaffari
Keyword(s):  
Risk Factors ◽  
Risk Management ◽  
Construction Industry ◽  
Construction Projects ◽  
Construction Project ◽  
Significant Risk ◽  
Interest Rate Risk ◽  
Extensive Literature ◽  
Productivity Cost ◽  
Management Techniques

The construction project is a complex sector which characterized with low productivity, cost and time overruns and conflicts. The major challenges in construction project risk assessment which may attributed to knowledge requirements for determining the level of uncertainty and development of complex models to predict . Portfolio theory and capital market theory stipulate that risk consists of two types, First, systematic risk, which cannot be controlled, emanates from external factors such as acts of God, natural disasters, market risk, interest-rate risk, and purchasing-power risk. Second, unsystematic risk, which can be controlled, relates to organization-specific factors such as business risk and financial risk (Fischer and Jordan 1996).) . To identifies the risk factors that influence the cost-effective management, operation, and maintenance of construction project, as well as how and when in the project life cycle the identified risk factors impact to the associated costs . The identification and design of risk is the first step of risk management. It contain the recognition of potential risk event conditions in a project and the clarification of risk responsibilities. A total of 50 risk factors on construction for stake holders (client , contractor ,consultant ) share projects were identified after conducting an extensive literature survey. A questionnaire survey was conducted from 60 project managers(20 from each category) in all three proficiencies with background experience in buildings ,road and bridges with minimum 15 years experience , to identify the most significant risk factors impact in construction projects . Interviews were conducted face to face, ensuring a 100 percent response rate. The questionnaire was amended by incorporating feedback of the experts to suit the local environments of the construction industry. The weight or rate of each risk factor gained by using a five-point Liker scale from a consolidated conceptual framework of all 50 risk factors identified from the deep literature work . The main aim of these research is to identify ,categorize and ranking common risks, exert management techniques to address those risks , effective risk management and risk status in the construction industry and to help stakeholders to take stock of their ongoing and future projects, with a focus on important risks, their management techniques and barriers to effective implementation of risk management systems.

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