scholarly journals Cost Over-Run in Civil Works: A Case-Study of Engineering, Procurement and Construction (EPC) Gas Depot Construction Projects in Nigeria

2020 ◽  
Vol 1 (4) ◽  
Author(s):  
Chukwuemeka Patrick Ogbu ◽  
Raphael Ehigiator-Irughe
Keyword(s):  
Construction Projects ◽  
Oil And Gas ◽  
Case Study Research ◽  
Petroleum Products ◽  
Cost Overrun ◽  
Cost Overruns ◽  
Cumulative Difference ◽  
The Cost ◽  
Cost Of Construction

Engineering, procurement and Construction (EPC) projects in the oil and gas sector of Nigeria are under-researched. This leaves investors with little or no guide on the cost-overrun risks of oil and gas depot projects. Using the qualitative case study research technique, this study investigated cost overrun in the civil works of a petroleum products depot project in Lagos, Nigeria. The objectives were to ascertain the reasons for cost overrun and the areas of substantial cost overrun in the project. It was found that except for the cost of construction of “gantry” which was under-measured as a result of use of a wrong method of costing, the rest of the major facilities experienced cost overrun with a cumulative difference of 106%. It was also discovered that the cost overruns mainly originated from design and construction activities. The study recommends the timely engagement of consultants to review the conceptual designs of contractors and monitor the activities of EPC contractors for oil and gas depot projects on behalf of clients. Such consultants should not, however, have powers to control the contractors. As much as possible, parties to EPC contracts should use standard conditions of contract that will better reflect their intentions rather than contrive bespoke conditions.

FACTORS AFFECTING COST OVERRUN IN CONSTRUCTION PROJECTS

2021 ◽  
Vol 8 (1) ◽  
Author(s):  
Mohammed Algahtany
Keyword(s):  
Saudi Arabia ◽  
Construction Projects ◽  
Cost Overrun ◽  
Cost Overruns ◽  
Factors Affecting ◽  
Public Projects ◽  
Low Performance ◽  
Major Factors ◽  
Public Construction ◽  
The Cost

Public construction projects in Saudi Arabia have been suffering from low performance for the past decade. Cost overrun is one of the most important issues in project’s performance and is nearly associated with most of public projects. The aim of this study is to identify and assess the major factors leading to cost overruns in education construction projects in the Northern Province of Saudi Arabia to minimize the risks’ effects in future projects. The research methodology started by identifying cost overrun factors through literature review, project’s documentations, and experts’ interviews. Professionals who worked at the construction projects undertook a questionnaire survey to investigate the importance of the cost overrun factors. The top factors of cost overrun were identified through the analysis of the factors’ occurrence and severity. The study main results included the top causes of cost overrun which are delay in contractors’ progress payment by client, difficulties in financing project by contractor, delays in sub-contractor’s work, additions of quantities such as excavation, backfill, and concrete works, and bid award for lowest price. The investigated risks in the study should be evaluated and mitigated in future projects to minimize their effects and enhance the industry performance.

scholarly journals Conceptual framework of resource-based cost allocation at procurement phase for onshore fabrication oil and gas projects

2021 ◽  
Vol 881 (1) ◽  
pp. 012021
Author(s):  
F R Mohd Roshdi ◽  
K Ismail ◽  
N S Lop ◽  
L Ab Wahab
Keyword(s):  
Resource Allocation ◽  
Conceptual Framework ◽  
Construction Projects ◽  
Cost Allocation ◽  
Oil And Gas ◽  
Project Planning ◽  
Cost Overruns ◽  
Literature Reviews ◽  
Business Profit ◽  
The Cost

Abstract Cost overruns are common in construction projects and Onshore Fabrication Oil and Gas projects in Malaysia are not an exception. The paper presents the strategies in controlling the cost in resource allocation management implemented at Procurement Phase. The data gathered from previous researchers’ studies and literature reviews. The study revealed the primary relative importance in the conceptual framework; theory underpinned, procurement phase, activities identification, cost element attributes and resource-based cost allocation towards business profit. Hence, the procurement phase should establish effective project planning, management, and monitoring to improve project performance to control costs in resource allocation for onshore oil and gas fabrication projects.

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.

ABOUT NECESSITY OF MATHEMATICAL MODELING OF THE BUSINESS PROCESS OF COST ESTIMATE CALCULATIONS IN THE CONSTRUCTION OF OIL AND GAS FACILITIES

2017 ◽  
pp. 139-145
Author(s):  
R. I. Hamidullin ◽  
L. B. Senkevich
Keyword(s):  
Mathematical Modeling ◽  
Quality Assessment ◽  
Business Process ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Gas Industry ◽  
Construction Organizations ◽  
The Cost ◽  
Cost Of Construction

A study of the quality of the development of estimate documentation on the cost of construction at all stages of the implementation of large projects in the oil and gas industry is conducted. The main problems that arise in construction organizations are indicated. The analysis of the choice of the perfect methodology of mathematical modeling of the investigated business process for improving the activity of budget calculations, conducting quality assessment of estimates and criteria for automation of design estimates is performed.

scholarly journals AN INVESTIGATION ON THE IMPROVEMENT OF CONSTRUCTION EXPENDITURE FORECASTING

2013 ◽  
Vol 19 (5) ◽  
pp. 759-711 ◽  
Author(s):  
Andrew Ross ◽  
Katie Dalton ◽  
Begum Sertyesilisik
Keyword(s):  
Cash Flow ◽  
Construction Projects ◽  
Case Study Research ◽  
Research Strategy ◽  
Flow Models ◽  
Improved Model ◽  
Work Affect ◽  
Cash Flow Forecast ◽  
Parameter Values

This study aims to determine the accuracy of the cash flow models and to investigate if these models could be more accurate if they accounted for the potentially influential variables specific to individual construction projects. An analytical case study research strategy has been implemented in collecting data for the construction projects. The data collected has been tested against recognised models. Statistical analyses have been carried out on the data for the specified variables, culminating in the potential proposal of an improved model with respect to these identified variables. The results revealed that the independent variables (type of construction, procurement route and type of work) affect the cash flow forecast. The findings suggested that a model could be more accurate with the input of more job-specific variables and that Hudson's DHSS model is best suited to a construction project procured traditionally. Adopting the ‘trial and error’ approach, Hudson's DHSS model has been recognised as an accurate model that could be adapted slightly, through changing the parameter values. The clients and the contractors are the main beneficiaries approached for this study.

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.

scholarly journals A three-step process for reporting progress in detail engineering using BIM, based on experiences from oil and gas projects

2019 ◽  
Vol 26 (4) ◽  
pp. 648-667 ◽  
Author(s):  
Øystein Mejlænder-Larsen
Keyword(s):  
Construction Projects ◽  
Oil And Gas ◽  
Case Study Research ◽  
Oil And Gas Industry ◽  
Information Modeling ◽  
Content Type ◽  
Step Process ◽  
Information Models ◽  
Building Information ◽  
Building Information Models

Purpose Traditionally, progress in detail engineering in construction projects is reported based on estimates and manual input from the disciplines in the engineering team. Reporting progress on activities in an engineering schedule manually, based on subjective evaluations, is time consuming and can reduce accuracy, especially in larger and multi-disciplinary projects. How can progress in detail engineering be reported using BIM and connected to activities in an engineering schedule? The purpose of this paper is to introduce a three-step process for reporting progress in detail engineering using building information modeling (BIM) to minimize manual reporting and increase quality and accuracy. Design/methodology/approach The findings of this paper are based on the studies of experiences from the execution of projects in the oil and gas industry. Data are collected from an engineering, procurement and construction (EPC) contractor and two engineering contractors using case study research. Findings In the first step, control objects in building information models are introduced. Statuses are added to control objects to fulfill defined quality levels related to milestones. In the second step, the control objects with statuses are used to report visual progress and aggregated in an overall progress report. In the third step, overall progress from building information models are connected to activities in an engineering schedule. Originality/value Existing research works related to monitoring and reporting progress using a BIM focus on construction and not on detail engineering. The research demonstrates that actual progress in detail engineering can be visualized and reported through the use of BIM and extracted to activities in an engineering schedule through a three-step process.

scholarly journals Influence of rebar practice in the total cost of building construction projects: The case of Hawassa city, Ethiopia

2020 ◽  
Vol 12 (1) ◽  
pp. 54-65
Author(s):  
Tariku Nigussie ◽  
M.K. Chandrasekar
Keyword(s):  
Construction Projects ◽  
Cost Overrun ◽  
Value Analysis ◽  
Total Cost ◽  
Correlation And Regression Analysis ◽  
Central Value ◽  
Research Designs ◽  
Analytical Research ◽  
The Cost ◽  
Bill Of Quantity

Rebar is one of the materials which is so scarce and highly expensive. The existing practices produce a large quantity of wastage; which contributes to the increment of the project cost. This study aimed to analyze the causes, extent, and remedies of steel wastages on the total costs of construction projects in Hawassa city. The study followed descriptive and analytical research designs. The cost estimated in the bill of quantity and the final cost after the provision of the steel with alterations was compared and the reasons for cost overrun were analyzed. The data were analyzed using Central value analysis, correlation and regression analysis using SPSS stat20, RebarWin7.97, ETABS2016. The percentage of the cost of steel wastage in total cost was found 1.43%. The result of the study verdict that frequent design change and bare-benders skill gap contribute much to the material wastage, thus for the cost overrun of projects. Keywords: Bending gain, cost overrun, detailing, rebar, redesign, steel, wastage

Evaluation of Stipulated Conditions Imposed at the Time of Grant of Environment Clearance from the Perspective of Implementation of Compliance-A Case Study for Construction Projects in India

2015 ◽  
Vol 03 (01) ◽  
pp. 1550006
Author(s):  
Sunil GUPTA ◽  
Sanjay SHARMA ◽  
Randeep Singh SAINI
Keyword(s):  
Construction Projects ◽  
Management Plan ◽  
Group Housing ◽  
Environment Management ◽  
Institute Hospital ◽  
Educational Institute ◽  
Effective Compliance ◽  
The Cost ◽  
Environment Parameters

The purpose of the paper is to discuss the stipulated conditions imposed at the time of grant of environment clearance from the perspective of implementation of compliance in case of construction projects in India. Conditions as imposed on 40 different building and construction projects in India from 2008 to 2013 are studied and evaluated and for a ready reference a sample of 14 representative project types is given in the paper. Based on the evaluation, we conclude that the laid down conditions are general in nature and more or less same irrespective of the location or type of the project may be an educational institute, hospital, office, hotel, group housing, bus terminus, or multiplex and whether it graded platinum or bronze in rating or ungraded. The impacts of the project nowhere find a mention in the stipulated conditions and thus there is no correlation between the conditions imposed and the baseline environment parameters. There is a dire need to rework the stipulated conditions itself on the lines of environment management plan proposed by the project proponent including setting apart the cost of implementation, if an effective compliance as envisaged by Ministry of Environment and Forests, Government of India is to be achieved.

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