scholarly journals Factors Contributing to Cost Escalation and Delay of Public-Private Partnership Projects in Maldives Construction Industry

2018 ◽  
Vol 2 (6) ◽  
pp. 1-10
Author(s):  
Zaina Ahmed Hameed ◽  

The purpose of the research is to identify the factors that contributes to cost escalation and delay of PPP construction projects in Maldives and to identify the significant factors in the perspective of the actors (client, contractor and consultant). In this quantitative research, a survey comprising the actors who have had previous experience in the field of PPP construction projects were used. The data analysis was carried out using Relative and Important Index (RII). The key findings indicate that the most significant factor for cost escalation is scope changes, followed by schedule delay and technical challenges and the most significant factor for project delay was delayed payments, followed by financial process, changes in drawings and poor supervision. The study contributes to the body of knowledge in construction industry by identifying the most significant factor which contributes to cost escalation and project delay in Maldives. The study is particularly useful for policymakers as a guide for planning and implementing PPP projects in the construction industry of Maldives.

2014 ◽  
Vol 6 (11) ◽  
pp. 848-857 ◽  
Author(s):  
Aigbavboa C.O. ◽  
Mukuka M.J. .

This paper assesses the construction professionals’ perception on the major causes of construction project delays and there consequential effects of on the Lusaka – Zambia, construction industry. This is due to the fact that the Zambia construction industry is a major key sector in the development and economic growth of Zambia. Despite this belief, the industry has not escaped the challenges facing other countries worldwide in terms of construction projects performance with regards to the delivery of projects on time as stipulated in the contracts. Data used in this study were derived from both primary and secondary sources. The secondary data was collected through a detailed review of related literature. The primary data was collected through a structured questionnaire survey, distributed to construction professionals, who include: architects, quantity surveyors, builders, civil engineers, land surveyors and project managers. Out of the 50 questionnaires sent out, 32 were received back representing 64% response rate. The primary data from the questionnaires was analyzed using descriptive statistics procedures. Hence, findings from the study revealed that delay in progress payments, difficulties in financing projects by the contractor, delay in approving major changes in the scope of work amongst others, were the major causes of construction delays. The study also revealed that extension of project time and cost over runs are the two major effects of construction project delays in Lusaka, Zambia. The study contributes to the body of knowledge on the subject of the causes and the effects of delay construction project delays in Lusaka, Zambia.


2015 ◽  
Vol 32 (6) ◽  
pp. 603-616 ◽  
Author(s):  
Kenn Jhun Kam ◽  
Ahmad Hilmy Abdul Hamid

Purpose – The purpose of this paper is to investigate contractors’ awareness level and adoption of QLASSIC assessment system in construction industry and to identify the variables that influenced the adoption of QLASSIC assessment system. Design/methodology/approach – Quantitative research method was adopted in order to test the above issues. The questionnaire composed for two parts: awareness and adoption of QLASSIC system; and the factors that influenced the adoption of QLASSIC system. Those contractors who registered under grade 6 and 7 are the scope of respondents in this study. Findings – The adoption of QLASSIC assessment is not significantly affected by the awareness whereas the motivations and barrier factors do. It was discovered that the contractors perception on QLASSIC adoption are basically due to the significant factors; the internal motivations and barrier. The major influencing factors are internal motivation factors, external motivation factors and barrier factors. Originality/value – This study reveals the true motives behind the adoption of QLASSIC assessment in the construction industry, where this finding significantly contributes to the understanding of contractors’ perception on this quality assurance program for the construction industry.


2019 ◽  
Vol 19 (1) ◽  
Author(s):  
Tharun Dolla ◽  
Boeing Laishram

Prequalification (PQ) is a significant process in the selection of private sector for the delivery of civil infrastructure projects.  But, the extant literature, for the most part, focused on PQ of construction projects.  The need for setting proper PQ, i.e., criteria and corresponding limits in public-private partnership (PPP) infrastructure projects, especially municipal solid waste (MSW) projects is still a lacuna in the body of knowledge of Indian PPPs.  To this end, this paper identified PQ criteria using content analysis of the sample of MSW projects. These identified criteria were subjected to regression modeling. These results were compared with the results of well-matured highway sector to draw comparison with MSW projects.  The practical implications are that urban local bodies (ULBs) are but less competent and less uniform in the rationale of setting the PQ criteria and limits.  This paper suggests that lowering the technical and financial PQ limits considering the market orientation will help in bringing more competitive bidders into the bidding.   Since MSW is in a very nascent stage of application of PPP, the study results could lay directions for future project procurement to discern right limits for right project sizes.


2019 ◽  
Vol 11 (6) ◽  
pp. 1613
Author(s):  
Daekyoung Yi ◽  
Eul-Bum Lee ◽  
Junyong Ahn

Korean oil and gas contractors have recently incurred significant losses due to improper engineering performance on EPC (engineering procurement and construction) projects in overseas markets. Several previous studies have verified the significant impact engineering has on EPC construction cost and project lifecycle. However, no literature has studied the time impact engineering has on EPC projects, representing a gap in the existing body of knowledge. To fill this gap, a Monte Carlo simulation was performed with the Pertmaster, Primavera risk analysis software for three sample onshore oil and gas projects. From said simulation of all major EPC critical activities, the authors found that the engineering phase is up to 10 times as impactful as the procurement and construction phases on the overall schedule duration. In assessing the engineering activities, the authors found the piping design activities to have the greatest impact on the overall schedule performance. Using these findings, the authors present a design schedule management process which minimizes the delays of project completion in EPC projects. Said process includes the following six steps: (1) Milestone management, (2) drawing status management, (3) productivity management of engineering, (4) interface management, (5) management of major vendor documents, and (6) work front management. The findings of this paper add to the body of knowledge by confirming the design phase to be the most impactful on the overall project schedule success. Furthermore, the presented design schedule management will aid industry with successfully executing the design phase in a timely manner, including examples from case study projects for a greater understanding.


2016 ◽  
Vol 36 (3) ◽  
pp. 332-356 ◽  
Author(s):  
Nicholas Chileshe ◽  
Raufdeen Rameezdeen ◽  
M. Reza Hosseini ◽  
Steffen Lehmann ◽  
Chika Udeaja

Purpose – A large number of benefits have been reported when reverse logistics (RL) is fully implemented in the construction industry. However, RL is yet to become common place in the construction sector, particularly in Australia. The particular sub-sector in which RL operates is small and weak and the remainder of the sector must embrace and accommodate it comfortably. Research is lacking on how to promoting RL in the construction industry. Very little has been done to identify the current practices that have the potential to promote RL industry-wide. The purpose of this paper is to identify the practices that work well in the sector, a strategy could be mapped out to promote RL to all stakeholders. Design/methodology/approach – In order to fill the above gap, the present study used a mixed method approach to gather and evaluate current practices and their potential to promote RL in South Australia’s construction industry. Practices that were identified using a comprehensive literature review were evaluated with a questionnaire survey and series of interviews involving construction professionals. Findings – The findings are that practices facilitating deconstruction is the most important, followed by practices facilitating the use of salvaged materials in new construction to promote RL in South Australia. Awareness of deconstruction benefits, challenges and procedures at the organisation level and facilities and services at industry level were associated with RL implementation. Availability of salvaged materials in the market was found to influence its use in new construction and as a consequence its demand. Designing for reverse logistics is another practice that could facilitate deconstruction and the onus of its promotion lies mainly with the designers. Research limitations/implications – This research was confined to one state in Australia. As such the generalisation to other states and other countries should be treated cautiously. Practical implications – The findings of this study can help inform the industry and its stakeholders on areas that they need to concentrate more on to make the South Australian construction industry a fully RL integrated one. To that end the authors propose some recommendations arising from the findings reported here. Originality/value – This study makes a contribution to the body of knowledge on reserve logistics within a previously unexplored South Australian context. In addition, the study provides valuable insights into the contribution of RL practices to the construction industry.


2017 ◽  
Vol 22 (3) ◽  
pp. 252-268 ◽  
Author(s):  
Ernest Kissi ◽  
Theophilus Adjei-Kumi ◽  
Edward Badu ◽  
Emmanuel Bannor Boateng

Purpose Tender price remains an imperative parameter for clients in deciding whether to invest in a construction project, and it serves as a basis for tender price index (TPI) manipulations. This paper aims to examine the factors affecting tender price in the construction industry. Design/methodology/approach Based on the literature review, nine independent constructs and one dependent construct relating to tender pricing were identified. A structured questionnaire survey was conducted among quantity surveyors in Ghana. Partial least squares structural equation modelling (PLS-SEM) examined the influences of various constructs on tender price development (TPD) and the relationships among TPD and TPI. Findings Results showed that cultural attributes, client attributes, contractor attributes; contract procedures and procurement methods; consultant and design team; external factors and market conditions; project attributes; sustainable and technological attributes; and TPI have a positive influence on tender price, whereas fraudulent attributes exert a negative influence. Practical implications The findings offer construction professionals broader understanding of factors that affect tender pricing. The results may be used in professional decision-making in the pricing of construction projects, as they offer clearer causal relations between how each construct will influence pricing. Originality/value This study adds to the body of construction pricing knowledge by establishing the relationships and degree of influences of various factors on tender price. These findings provide a valuable reference for practitioners.


2015 ◽  
Vol 33 (1) ◽  
pp. 59-82 ◽  
Author(s):  
Dubem Ikediashi ◽  
Onuwa Okwuashi

Purpose – The purpose of this paper is to investigate and conceptualise significant factors influencing decision to outsource facilities management (FM) services in Nigeria’s public hospitals. Design/methodology/approach – Data for this study were collected using a cross-sectional questionnaire survey. A total of 85 responses were received from the six states comprising the study area while 11 of them were discarded due to missing data resulting in 74 usable responses. This gave an overall response rate of 61 per cent. Data collected were analysed using descriptive and inferential statistics as well as principal component analysis. Findings – Findings revealed that 25 of the 31 factors were significant in explaining the decision to outsource FM service in Nigeria’s public hospitals; while 15 of them grouped into six broad categories were selected based on their factor loadings during further analysis. Besides, it was also established from the study that “to improve performance standard”, “to improve quality of services” and “to improve timely delivery of services” are the top three rated factors. Research limitations/implications – The study complements the body of knowledge on “make or buy” decision theory by provided empirical insight into key attributes of outsourcing decision motives for FM services from the point of view of Nigeria’s public sector spectrum that can serve as benchmark for deciding on whether to outsource or not. Practical implications – The study also has practical implications. More is now known as a result of this research about what factors constitute drivers for outsourcing FM services within the context of Nigeria’s public hospitals. With an aggregate opinion from 74 public hospitals, the study provides hospital administrators and public managers with a list of prioritised factors for making rational informed decision about outsourcing of services in the hospitals. Originality/value – The study complements the body of knowledge on “make or buy” decision theory by providing empirical insight into key attributes of outsourcing decision motives for FM services from the point of view of Nigeria’s public healthcare.


2021 ◽  
Vol 28 (1) ◽  
pp. 118-129
Author(s):  
Ibrahim Mahamid

This study is conducted to establish the effect of design quality on project delay in building projects. It aims at: 1) investigating the major factors of design quality, 2) identifying the main delay factors in building projects, 2) establishing the relationship between design quality and delay in building projects. To achieve these objectives, a questionnaire survey is performed. Seventeen (17) factors that might affect design quality, and 15 delay factors are listed in a questionnaire form. Sixty (60) contractors and 40 consultants are asked to identify the severity of the identified factors. Results indicate that the top factors affecting design quality are: delay in payments by client for design services, staff allocation for many projects at the same time, copying and modifying from previous work to minimize time and cost, tight design schedule, lack of designer knowledge with techniques and materials available in the market. The study also concludes that the top five delay factors include: payments delay, poor labor productivity, lack of skilled manpower, frequent change orders and rework. Regression analysis for data collected from 36 building projects shows a good correlation between design quality and delay in projects. This study is the first one that addresses the problem of design quality in the West Bank in Palestine. Furthermore, it is the first study that addresses the effect of design quality on project delay in Palestine and the neighboring countries. It is hoped to be helpful for researchers and professionals to understand the impact of design quality on schedule delay.


2021 ◽  
Vol 26 (2) ◽  
pp. 211-230
Author(s):  
Aliu John ◽  
Aigbavboa Clinton ◽  
Wellington Didibhuku Thwala

As the world basks in the euphoria of the fourth Industrial Revolution (4IR), Africa is gearing up for this innovative age, with South Africa as one of its leading voices. One of the ways of leveraging on the opportunities presented by the 4IR era is to foster collaborations between universities and the construction industry (university-industry collaboration, UIC). This research article aims to determine the positive impacts of UIC on the employability of built environment graduates. A qualitative Delphi approach was adopted to validate 16 factors, which were identified from literature. A total of 14 experts completed a two-stage iterative Delphi study process and reached consensus on all 16 factors identified. This study found that networking activities with industry professionals, student's exposure to innovative ideas and 4IR training programme opportunities are some of the ways through which UIC can improve 4IR knowledge and employability skills among students. From the Delphi survey results, educational institutions have been placed under significant pressures to intensify collaborations with the industry by creating avenues for students to experience industrial training with present-day 4IR-driven sectors such as the construction industry, which has begun the adoption of 4IR elements into its processes to improve efficiency and productivity. Although the issue of UIC has been widely discussed in the body of knowledge, very few have incorporated the 4IR dimension as a gap, which this study aims to fill.


Author(s):  
Hock Seng Raymond Yip ◽  
Herman Shah Anuar

In the area of the construction sector, the primary concern is economic growth. There are many issues and challenges associated with it. The growth and rapid development of this industry put their players, mainly the construction firms feeling the heat by competing with each other. The main challenge is the completion period for a particular project. This study was done in Manila, Philippines, where Design and Build (D&B) method has gained much interest and considered very important today. The rise of new innovative systems saw the emergence of new factors in the construction industry that will become future adoption. This study focuses on factors affecting the successful completion period of the construction industry, whereby it is very crucial for the country's economic and market development. A quantitative research methodology was applied in this study. A total of 967 survey questionnaires sent out, and only 396 respondents fit to be analysed. Respondents involved were contractors, consultants, and developers. It was learned that critical success factors in project management play significant roles in driving projects to examine the determinants of success completion time of Design & Build construction projects. Findings from this study shall be used by the authority in drafting a policy guideline for future construction development. It is hoped that this study provides a better understanding of construction challenges for future undertaking.


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