scholarly journals Factors for Time and Cost Overrun in Public Projects

2021 ◽  
Vol 11 (3) ◽  
pp. 243-254
Author(s):  
Shehryar Idrees ◽  
Muhammad Tariq Shafiq
Keyword(s):  
Public Sector ◽  
Construction Industry ◽  
Construction Projects ◽  
Cost Overrun ◽  
Structured Interviews ◽  
Public Projects ◽  
Public Facilities ◽  
Technical Errors ◽  
Potential Factors ◽  
Project Delays

Abstract The construction industry in Pakistan is experiencing a surge in public sector projects due to major investments in infrastructure projects. Project delays and cost overrun are common features in public sector construction projects in Pakistan. Therefore, an understanding of the causes of time and cost overrun in public projects is essential. This paper investigates delay and cost overrun factors within the context of public sector projects in Pakistan. This study identifies 48 potential factors from existing literature and semi-structured interviews were used to refine the identified factors into ten categories. A questionnaire survey was used to establish a hierarchy of factors using descriptive statistics. The results showed that the major causes of time overruns in public projects were (1) legal issues, such as court stay orders, land acquisition, relocation of public facilities; (2) technical errors leading to low-quality drawings, rework, and errors at bidding stage; and (3) Poor project management. The findings of this research contribute to understanding the causes of project delays in public sector projects in Pakistan.

Factors contributing to project time and hence cost overrun in the Malaysian construction industry

2014 ◽  
Vol 19 (1) ◽  
pp. 55-75 ◽  
Author(s):  
Zayyana Shehu ◽  
Intan R. Endut ◽  
Akintola Akintoye
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Cost Overrun ◽  
Negative Effects ◽  
Public And Private ◽  
Content Type ◽  
Flow Problems ◽  
Additional Costs ◽  
Major Factors ◽  
Project Delays

Purpose – The delivery of construction projects in Malaysia is plagued by time overruns, which turns what should have been successful projects into those incurring additional costs, or money-losing ventures; as well as leading to various other unexpected negative effects and faute de mieux situations. The purpose of this research is to assess those factors leading to time overrun in Malaysian construction projects. The perceptions of public and private sectors, contractors, clients, and consultants are compared relative to a list of factors derived from the review of extant literature in project delay. Design/methodology/approach – The research data were collected through an industry-wide questionnaire survey circulated across the Malaysian construction industry. The research develops a list of 84 time overrun factors. Responses were collected from 49 clients, 51 contractors, and 105 consultants, to explore and analyse the major factors that are responsible for causing time overrun based on sectors (public and private), organisations (clients, contractors and consultants) and professional roles. Findings – Project delays beyond contract dates are predominantly caused by contractors and are usually associated with financial factors. “Cash flow problems faced by the contractors” was found the major factor, which contributed to project delays, whereas “storage on site” was seen as the least significant factor. Practical implications – It is noteworthy that the findings in this research have a regional focus; it is, therefore, suggested that readers from other sections of the world exercise caution in applying the findings. As it is believed that every construction industry has its nature, culture and regulations, these factors can change as a result of such differences. Originality/value – This research provides stakeholders with information on factors, which, if properly understood, can make project delays less likely.

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 Quantity Surveyors’ Response to the COVID-19 Outbreak: A Mixed Method Approach

2021 ◽  
Vol 7 (2) ◽  
pp. 177
Author(s):  
Seng Hansen ◽  
Susy F Rostiyanti ◽  
Rizaldi Rizaldi ◽  
Clara Andjarwati
Keyword(s):  
Construction Industry ◽  
Mixed Method ◽  
Construction Projects ◽  
Work Culture ◽  
Structured Interviews ◽  
Mixed Method Approach ◽  
Professional Activities ◽  
Project Sustainability ◽  
Project Objectives ◽  
Method Approach

The COVID-19 outbreak began at the end of 2019, and has evolved to a pandemic threatening various industries’ sustainability. Decisive actions have been taken to tackle the pandemic’s spread, however, various impacts continue to be felt by many industries, including the construction industry. This paper therefore focuses on the COVID-19 outbreak’s impact on Quantity Surveyors’ (QS) construction projects and activities, as a key profession in the industry. A mixed method approach, questionnaire survey followed by expert interviews, was adopted. Subsequently, 199 valid responses for analysis were obtained from the questionnaire distribution, using descriptive statistics and Significance Index. Furthermore, qualitative data were acquired through semi-structured interviews with five experts, and analyzed using a structured thematic analysis. According to the results, 56.78% of respondents experienced project slowdowns, 13.57% experienced project suspensions or terminations, and 12.56% experienced cost overruns. Most respondents acknowledged the pandemic had present changes to projects (84.92%), in the form of changes in organization structure, work culture, technological application, and project objectives. Meanwhile, the Significance Index has successfully established an 11-factors ranking, regarding the pandemic’s impact on QS activities, with impact on the overall project completion as the most profound impact followed by impacts on project scheduling, supply chain, tendering, cost controlling, and claim management. This study’s qualitative and quantitative findings tend to be in accordance, thus, providing some fundamental insights regarding the COVID-19 outbreak’s impact on the construction industry, including direct impacts on project sustainability, technology adoption, and project resiliency issues. In addition, this study also contributes to scientific knowledge by discussing the issues and trends of work culture changes in QS professional activities.

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.

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.

scholarly journals Identification of Causes and Minimization of Delays in Highway Projects of Pakistan

2019 ◽  
Vol 38 (1) ◽  
pp. 103-112
Author(s):  
Samiullah Sohu ◽  
Abdul Fattah Chandio ◽  
Kaleem ullah
Keyword(s):  
Literature Review ◽  
Construction Industry ◽  
Questionnaire Survey ◽  
Construction Projects ◽  
Structured Interview ◽  
Mitigation Measures ◽  
Structured Interviews ◽  
Highway Projects ◽  
Mean Values ◽  
Causes Of Delays

The problem of delay in construction industry is a regular phenomenon worldwide, and construction industry of Pakistan has no exception, particularly in highways projects. Delay can be described as the extension of time to complete the construction project. The aim of this paper is to identify main causes of delays in highway projects of Pakistan, and to determine mitigating measures for the identified causes. The research method of this study is based on literature review, questionnaire survey and semi structured interview. From in-depth literature review, twenty-six common causes of delay were found. A questionnaire survey was carried out among construction professionals of highway projects. The causes of delay in highways projects were ranked referring to their Mean values. A semi structured interview was carried out to determine mitigation measures for the top ten causes of delays. The data gathered from questionnaire survey was analyzed using SPSS (Statistical Package for the Social Sciences) while, data collected through semi structured interviews was analyzed using Nvivo software. The findings of this study are expected to be useful for construction parties, to mitigate the delays in highway construction projects of Pakistan.

Demystifying performance difference between local and foreign contractors through organisational culture

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chipozya Kosta Tembo ◽  
Franco Muleya ◽  
Emmanuellie Phiri
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Design Methodology ◽  
Large Scale ◽  
Overall Response Rate ◽  
Organisational Culture ◽  
Management Style ◽  
Content Type ◽  
Public Projects ◽  
Grade One

PurposeThis research aimed to investigate the extent to which organisational culture is practised in local and foreign contractors in grade one and two categories and how it affects their performance.Design/methodology/approachThe approach for this research was positivist in nature adopting a mono-method of data collection through a survey using self-administered questionnaires. A total of 138 questionnaires were distributed among public clients and large-scale contractors registered in the stated grades, and 112 questionnaires were returned for analysis representing an overall response rate of 81% for contractors and clients.FindingsFindings revealed that in organisational culture, significant differences were found for management style and dominant characteristics of the organisation between local and foreign contractors. Differences were not found for leadership styles, measures of success and organisational glue. Results suggest that for local contractors to perform better, significant changes are needed to their management style and dominant characteristics of their organisations.Originality/valueForeign contractors in the Zambian construction industry are reportedly outperforming local contractors making them preferred contractors on larger public projects accounting for 85% of construction projects by value of works. This study presents the differences in organisational culture between foreign and local firms. It further demonstrates that organisational culture plays a key role in determining performance of a contracting firm. The study presents areas that local contractors can improve in organisational culture in order to remain competitive.

scholarly journals Lessons learnt from the use of relationship-based procurement methods in Australia: clients’ perspectives

2016 ◽  
Vol 16 (2) ◽  
pp. 1-13 ◽  
Author(s):  
Farshid Rahmani ◽  
Malik M A Khalfan ◽  
Tayyab Maqsood
Keyword(s):  
Construction Industry ◽  
State Government ◽  
Research Question ◽  
Structured Interviews ◽  
Public Projects ◽  
Government Organizations ◽  
The Future ◽  
Sector Decision ◽  
Future Direction ◽  
High Level

This paper aims to review the use of various construction procurement systems and present the development of Relationship-Based Procurement (RBP) Methods currently in use within the Australian construction industry. Therefore, this paper provides the historical development of procurement briefly and then focuses on the adoption of Relationship-Based Procurement (RBP) approaches in the Australian construction industry to investigate the future direction of the collaborative project procurement arrangements. Semi-structured interviews with high-level managers in the Australian state government organizations have been conducted to answer the research question. A discussion has been presented about the potential future tendency of the industry in adopting a RBP. The findings suggest that even though relationship based procurement systems offer significant benefits; they are not popular among the public sector decision makers because of inability to demonstrate Value for Money (VfM) propositions for public projects. Other reasons which may cause a move away from using RBPs in the future include the need for managers to fully engage throughout the project, and the lack of collaborative environment within the construction industry in general. 

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.

Sustainable procurement in the Canadian construction industry: challenges and benefits

2015 ◽  
Vol 42 (6) ◽  
pp. 417-426 ◽  
Author(s):  
Rajeev Ruparathna ◽  
Kasun Hewage
Keyword(s):  
Statistical Analysis ◽  
Construction Industry ◽  
Construction Projects ◽  
Waste Generation ◽  
Structured Interviews ◽  
Bottom Line ◽  
Sustainability Performance ◽  
Sustainable Procurement ◽  
Main Challenge ◽  
Harmful Emissions

Disregard of triple bottom line (TBL) of sustainability is one of the major drawbacks of current construction procurement practices. Sustainable procurement is an emergent concept that can improve procurement practices and enhance the sustainability performance of the construction industry as a whole. Presently, sustainable procurement is still not fully utilized in the Canadian construction industry. A comprehensive literature review showed that the construction industry is still not fully aware about the benefits of using sustainable procurement or ways of implementing the same. This study evaluates challenges encountered in implementing sustainable procurement in the Canadian construction industry. In addition, this study investigates perceptions of construction professionals on the benefits of using sustainable procurement for construction projects. A country wide questionnaire survey and semi-structured interviews were conducted to collect required data. A statistical analysis was performed to rank the challenges and benefits of sustainable procurement. Findings from semi-structured interviews were used to validate the results observed in the statistical analysis. This study revealed that lack of funding is the main challenge for implementing sustainable procurement, while reducing harmful emissions and waste generation was identified as the main benefit. It was concluded that the leadership and commitment of the project owners is the key to fully establish sustainable procurement in the Canadian construction industry.

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