scholarly journals COST ESTIMATION PRACTICES PREVALENT IN CONSTRUCTION PROJECTS IN OMAN

2019 ◽  
Vol 16 (2) ◽  
pp. 115
Author(s):  
Khalid Alzebdeh ◽  
M. Al-Siyabi ◽  
Ali Al-Nuaimi ◽  
Mohammad Khadem
Keyword(s):  
Risk Factors ◽  
Construction Industry ◽  
Cost Estimation ◽  
Construction Projects ◽  
Historical Data ◽  
Response Rate ◽  
Medium Size ◽  
Estimation Process ◽  
Rate Method ◽  
The Cost

This paper reports findings of a study that captures cost estimation practices and techniques prevalent in the construction industry in Oman.  It also identifies the success and risk factors that are encountered in the cost estimation process. Eighty structured questionnaires were distributed to some professionals working in construction projects, selected randomly from large and medium size enterprises across the Sultanate. A response rate of 56% was achieved. The results showed that the unit rate method, the use of historical data and benchmarking are the most common methods used for cost estimation. Success and risk factors as reported by respondents were analyzed and ranked accordingly. The main sources of risk were reported by respondents as “Unclear reading and understanding of specifications”, “Lack of clear documents of the project scope of work”, and “Unavailability of Resources”. This study provides an insight understanding of revealed practices and techniques and globally share the findings with researchers and professionals.

The Impact of Terrorism on Construction Industry in Iraq

2015 ◽  
Vol 3 (2) ◽  
pp. 69-84
Author(s):  
Wadhah Amer Hatem ◽  
Samiaah M. Hassen Al-Tmeemy
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Historical Data ◽  
Terrorist Attacks ◽  
Construction Sector ◽  
Statistical Procedures ◽  
Qualitative Approaches ◽  
Suicide Attacks ◽  
The Face ◽  
The Impact

     Suicide attacks, bombings, explosions became the part of daily life in Iraq. Consequently, the threat of terrorism put the Iraqi construction sector in the face of unique and unusual challenges that not seen on other countries. These challenges can have extensive impact on construction projects. This paper seeks to examine the impact of the terrorist attacks on construction industry and determine the extent to which the impact of terrorism on construction projects in terms of cost, schedule, and quality. This study adapted quantitative and qualitative approaches to collect data using questionnaire survey and interviews, as well as historical data. The study focused on projects that have been the target of terrorist strikes in Diyala governorate. A variety of statistical procedures were employed in data analysis. The results revealed the extent to which terrorist attacks impact construction projects in terms of cost, time, and quality. The results of this study will enhance the awareness of all construction parties to the impact of the terrorist attacks against construction projects. Eventually, this can develop a risk management assessment and assist contractors to properly protect projects and buildings to minimize injuries and fatalities in the event of terrorism.

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 Cost prediction model based on system dynamics in water resource project

2019 ◽  
Vol 258 ◽  
pp. 02027
Author(s):  
Hirijanto ◽  
I Wayan Mundra ◽  
Addy Utomo
Keyword(s):  
Prediction Model ◽  
Cost Estimation ◽  
Construction Projects ◽  
Model Simulation ◽  
Secondary Data ◽  
System Dynamic ◽  
Cost Prediction ◽  
Cost Component ◽  
The Government ◽  
The Cost

Project’s cost is one of important components in project achievement. Because of the uniqueness of construction projects, cost estimation always differs from project to project. The rate of cost components always change over time make difficult to forecast the cost for the upcoming project. The cost component consists of many influencing variables where there is interrelationship each other affecting to the total project cost. This paper objective is to develop a cost prediction model to assist the project planners in cost estimation for future projects. System dynamic is one of the appropriate methods to analyse system behaviour with interrelationship referring to the historic data, so it is able to predict the future project. Developing the model, primary and secondary data are collected from previous studies, interview with the government planner and survey in Malang Regency. The model simulation is Brick work unit with its components. Data from last thirteen years are used to verify and validate the developed model by causal loop diagram as a basic method in system dynamic. The finding showed that the model is closed to real condition through the validation mechanism. The developed system is useful in decision making of budget planning based on work quantity.

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.

Integrated cost and schedule control in the Korean construction industry based on a modified work-packaging model

2008 ◽  
Vol 35 (3) ◽  
pp. 225-235 ◽  
Author(s):  
Sangchul Kim ◽  
Chanjeong Park ◽  
Sangyoub Lee ◽  
Jaeho Son
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Quantitative Measure ◽  
Domestic Market ◽  
Control Technique ◽  
Schedule Control ◽  
Cost Information ◽  
Integrated Cost ◽  
Ev Model ◽  
The Cost

As a project control technique concept that provides a quantitative measure of schedule and cost information, the earned value (EV) model can evaluate work progress by identifying the potential delay and the cost overruns in a project, which is useful for controlling projects. The construction industry in Korea does not put this concept into practice, however, because it is poorly understood and because the construction practices in Korea are different from those in other industrialized countries. Most important is the fact that almost all the construction projects in Korea are controlled in accordance with the budget breakdown structure (BBS), which is less detailed than the cost breakdown structure (CBS), while those in the USA are managed through schedule control on the basis of the work breakdown structure (WBS). This is because most of the construction projects in Korea are generally contracted at a fixed price. This being the case, once the contract is awarded, the clients are no longer concerned with the cost of the project. This current construction practice based on the BBS rather than on the WBS has brought forth a limitation in terms of the use of the existing EV model in the domestic market. In this study, the EV model, which is suitable for the domestic market, is demonstrated. An integrated model of the WBS and CBS is then developed based on the modified work-packaging model. Finally, the developed model is integrated into the project management system (PMS) to verify its suitability and efficiency.

scholarly journals ACHIEVING SAFETY AND PRODUCTIVITY IN CONSTRUCTION PROJECTS

2015 ◽  
Vol 23 (2) ◽  
pp. 311-318 ◽  
Author(s):  
Rafiq Muhammad CHOUDHRY
Keyword(s):  
Statistical Analysis ◽  
Construction Industry ◽  
Construction Projects ◽  
Response Rate ◽  
Practical Knowledge ◽  
Project Managers ◽  
Hard Copy ◽  
Construction Sites

Improvement of safety and productivity are major concerns throughout the construction industry. There is a dearth of efforts that document the need for simultaneous achievement of safety and productivity on construction sites. The objective of this research is to investigate productivity and safety simultaneously on construction projects by con­ducting a survey. In total, 1,800 hard-copy questionnaires were distributed and the response rate was 81%, resulting in 1,454 valid questionnaires for analysis. Safety and productivity were investigated on 25 construction projects by means of statistical analysis. The results indicated that eleven of the fifteen significant findings pertained to safety and the rest to productivity. The results confirmed that it is possible to improve productivity and safety simultaneously on construc­tion projects. All measures were found to be correlated with both safety and productivity. The findings of this research provide practical knowledge to project managers and safety practitioners on construction projects to achieve safety and productivity simultaneously. The methodology of research might be useful for research at other construction projects in other regions and cultures.

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.

scholarly journals IMPACT OF COVID 19 PANDEMIC ON PROJECT PORTFOLIO MANAGEMENT-A CASE STUDY ON CONSTRUCTION INDUSTRY IN SOUTHERN INDIA

2021 ◽  
Vol 12 (2) ◽  
pp. 168-178
Author(s):  
Ajay Krishnan ◽  
Ajithkumar S ◽  
Manishankar G ◽  
Upendra K ◽  
Kabilan A ◽  
...  
Keyword(s):  
Risk Factors ◽  
Real Estate ◽  
Construction Industry ◽  
Portfolio Management ◽  
Construction Projects ◽  
Project Portfolio ◽  
Project Portfolio Management ◽  
Management Tools ◽  
Real Estate Sector ◽  
The Impact

In India, Project Portfolio Management (PPM) is in practice as a tool for prioritizing and managing real estate projects in construction organizations. But due to insufficient funding, improper judgment of experts during the crisis situation, the selection of optimal project portfolio prototype can be viewed as a risk based decision making process involving various risk factors. The objective of this study is to analyze the importance of project portfolio management and the risks associated with it in the construction industry taking into account the impact of novel corona virus COVID 19. This research identifies the adoption of more consistent project governance, risk management techniques and way more careful project portfolio management as the core area of study. A conceptual framework for Project Portfolio Management is also designed after analyzing various parameters of Project Portfolio Management of construction industry with the help of Bayesian framework. The key motive for undertaking this part of examination on real estate sector of Indian construction industry in southern part of India to reduce the impacts and increase the return on investment from the projects by mitigating the effect of risk factors associated in the projects.  Project Portfolio Management tools and techniques are very useful for managing multiple construction projects.

scholarly journals Building Information Modelling Technology in Mitigating Cost Overruns and change orders in Construction Projects

2021 ◽  
Vol 4 (1) ◽  
pp. 50-64
Author(s):  
Ja’far A. Aldiabat Al-Btoosh
Keyword(s):  
Construction Industry ◽  
Cost Estimation ◽  
Construction Projects ◽  
Information Modeling ◽  
Cost Overruns ◽  
Change Orders ◽  
Significant Difference ◽  
Project Costs ◽  
Building Information ◽  
And Control

Variation order (VO) is one of the main issues faced by the construction industry in Jordan. Many researchers had investigated on the causes of VO and proposed procedures to minimize and control this issue; however, the VO is affecting the construction industry badly even at moment. Building Information Modeling (BIM) is a powerful management system that can make a significant difference in the project costs. However, BIM has not been examined as a tool to minimize the VO in Jordan. The main target of this study is to utilize BIM applications in reducing the effect of VO on the governmental projects in Jordan. In order to achieve this target, the researcher has designed a questionnaire to gather data related to VO causes and the BIM capability to solve this problem. The data collected from the questionnaires were analyzed statistically. The result from the analysis found that the consultant initiated the highest VO of 50% followed by the clients and the contractors of 20% and 10% unforeseen variation respectively. Moreover, it is found that BIM Design Applications, Facility Operations Simulation, Exploration Design Scenarios, BIM Design Detection and BIM Quantity Take-off and Cost Estimation were significantly capable of minimizing VO. The results show positive relationship with the application of BIM in minimizing VO in the construction industry in Jordan. © 2018. JASET, International Scholars and Researchers Association

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