scholarly journals Design Changes in Construction Projects – Causes and Impact on the Cost

2019 ◽  
Vol 5 (7) ◽  
pp. 1647-1655 ◽  
Author(s):  
Mughees Aslam ◽  
Edmund Baffoe-Twum ◽  
Farhan Saleem
Keyword(s):  
Construction Projects ◽  
Primary Objective ◽  
Extensive Literature ◽  
Cost Overrun ◽  
Project Cost ◽  
Design Changes ◽  
Communication And Coordination ◽  
The Cost ◽  
The Impact ◽  
The Relationship

Isolation of design phase from construction has made the design changes inevitable in construction projects. Extensive literature appraisal has acknowledged the detrimental effect of design changes on project performances. However, the impact and causes of design changes have been divided up, either separately or project specific. As a result, the relationship between impact and causes of design changes could not be established for general construction. The primary objective of this paper is to examine the impact of design changes on project cost and identifying actions responsible for these changes. The objectives of the study were achieved through a systematic review of past literature published in well-established journals, and contents analyzed. From the extensive literature review, it was established that the design change is one of the predominant factors to cost overrun, and in some cases, may upshot into cost overrun between 5 and 40% of the project cost. Also, many causes of design changes resulting in cost overrun within the perspective of the owner, consultant, and contractors are explored. Some projects experienced closure as a result of owner induced design changes, although these changes may not be significant in number.  Design changes as a result of consultants and contractors in some cases might have reduced impact but are frequent. For each consideration, most events leading to design changes can be eliminated by improving on communication and coordination between stakeholders. The main contribution of this research is to bring together the impact and causes of design changes on cost under one platform for effectively managing the design process.

scholarly journals An assessment of cost escalation in building construction project

2021 ◽  
Vol 39 (4) ◽  
pp. 1029-1034
Author(s):  
A. Nazif ◽  
A.K. Mustapha ◽  
F. Sani
Keyword(s):  
Construction Projects ◽  
Building Construction ◽  
Project Cost ◽  
Mean Values ◽  
Design Error ◽  
Project Construction ◽  
Effective Cost ◽  
Building Project ◽  
The Impact ◽  
The Relationship

Estimating of cost for building construction projects with minimum error at the conceptual stage of project development is quite  essential for planning. This study seeks to evaluate factors responsible for cost escalation of building construction projects.  Questionnaires were administered to examine and assess these factors. Subsequently, the mean score value of each factor was determined. In addition, Correlation and Linear regression analyses were used to establish the relationship between these factors. Factors responsible for cost escalation in projects were examined as well as the impact of those factors, and occurrence of those factors on project cost. The result of the analysis showed that, the most agreed factors responsible for project cost escalation were; inadequate supervision, irregular payment, and design error, having high mean values of 4.25, 4.20, and 4.15, respectively. Also, correlation analysis result established that the factors responsible for cost escalation and the impact of cost escalation had significant R and R2 of 0.81 and 0.70 respectively. Addressing these factors would go a long way in reducing the escalation of building project cost. Never the less, an effective cost management strategy is absolutely necessary to safeguard and sustain the construction  industry. Keywords: cost escalation, building project, construction, regression analysis

scholarly journals Estimation of cost overrun in construction projects using Fuzzy Logic

2021 ◽  
Vol 23 (05) ◽  
pp. 797-805
Author(s):  
Neelakash Haloi ◽  
◽  
Tapas Goyal ◽  
Faizan Zahoor ◽  
Harsh Jain ◽  
...  
Keyword(s):  
Fuzzy Logic ◽  
Construction Projects ◽  
Cost Overrun ◽  
Time Data ◽  
Construction Companies ◽  
Five Factors ◽  
Spss Software ◽  
The Cost ◽  
The Impact ◽  
Published Research

In recent years, the impact of the construction industry on the economy of India is increasing. However, there are a number of problems that are being faced by the construction companies or contractors or other relevant stakeholders, in the completion of a construction project. One of the major problems being faced is time and cost overrun. Thus, it is important to find ways of mitigating this critical problem. One of the solutions that is being used is the prediction of the amount and time that a project might overrun beforehand i.e. estimating the overrun during the design phase itself. This prediction can be done using a number of different techniques, the important one of which used in this paper is through the use of Fuzzy Logic. It also provides a brief description about the factors that are responsible for causing this cost overrun. The factors are identified by conducting a questionnaire survey and gathering responses from the relevant stakeholders which include contractors, project engineers, architects and consultants. The responses collected are further processed and analysed using SPSS software. The top 5 factors have been selected after the analysis and further used in preparation of the fuzzy logic model in the fuzzy toolbox of MATLAB. Further, the validation of this model has been done with real-time data of projects from various published research papers. Thus, the model developed provided prediction of the percentage of the cost overrun based on the percentage input of the top five factors.

scholarly journals Analysis of Cost of Rework on Time and Cost Performance of Building Construction Projects in Abuja, Nigeria

2018 ◽  
Vol 5 (1) ◽  
Author(s):  
Emmanuel Chidiebere Eze ◽  
John Ebhohimen Idiake
Keyword(s):  
Significant Relationship ◽  
Construction Projects ◽  
Building Construction ◽  
P Value ◽  
Delivery Time ◽  
Cost Performance ◽  
Project Cost ◽  
Final Project ◽  
The Cost ◽  
The Impact

Rework is a menace that leads to undesired and unnecessary loss of efforts, it degrades project cost and schedule performance of construction projects, both at design and construction phases. This study therefore, analyzed the impact of cost of rework on time and cost performance of building construction projects in Nigerian, using selected commercial building project within the country’s capital. A pro forma was adopted for gathering data on rework cost, project cost and time of selected building projects, while structured questionnaire was used to collect information on the likely measures for reducing rework incidences from construction professionals that were involved in the delivery of the identified projects. Regression analysis, relative importance index and Kruskal-Walis test were employed for data analysis. The study revealed a significant relationship between the cost of rework and initial and final project cost of delivering commercial buildings, as an average of 3.53% impact on the initial project cost, 46.60% contribution to cost overrun, and p-value of 0.000 was observed on all assessed projects. For the project delivery time, a significant relationship between the cost of rework and initial and final project duration, as an average of 7.35% impact on the initial delivery time, extra 19 days and p-value of 0.000 was observed on all assessed projects. Team building and education, management commitment, employee involvement, were some of the best possible measures to minimized rework problems.

scholarly journals COVID-19 pandemic impact: an identification of the cause of cost overrun in construction project

2021 ◽  
Vol 331 ◽  
pp. 01014
Author(s):  
Yervi Hesna ◽  
Jati Sunaryati ◽  
Ayu Hidayati
Keyword(s):  
Construction Industry ◽  
Construction Project ◽  
Health And Safety ◽  
Cost Overrun ◽  
Project Cost ◽  
Heavy Equipment ◽  
Two Factors ◽  
Implementation Time ◽  
The Cost ◽  
The Impact

The paper provides a thorough examination of the impact of COVID-19 on increasing the cost of the construction project. The pandemic of COVID-19 had disrupted the financial and operational of the construction industry. Many projects have been closed and suspended, and this situation has caused great uncertainty in the construction industry. Even though the Instruction of the Minister of Public Work No. 2/2020 issued March 27, 2020, stated that construction activities in Indonesia could continue work. However, it still believes COVID-19 can lead to poor project cost performance. The study used a literature review to explore the factors contributing to the increase in project cost. A case study in the hotel construction project is used to test the factors. The research found six factors have a frequency of occurrence for each cause of cost overrun, namely labor, material, implementation time, project financial aspects, estimated cost, and occupational health and safety. The case study’s two factors are not the cause of the cost overrun based on the interviewee’s answer: heavy equipment and overhead. This paper also explains the mechanism to address cost overrun continue in construction work.

scholarly journals Assessment of the Cost and Time Impact of Variation Orders on Construction Projects in Sulaimani Governorate

2021 ◽  
Vol 27 (2) ◽  
pp. 106-125
Author(s):  
Karukh Hassan Mohammad ◽  
Noori Sadiq Ali ◽  
Basira Majeed Najm
Keyword(s):  
Construction Projects ◽  
Descriptive Statistics ◽  
Construction Time ◽  
Project Cost ◽  
Cost Overruns ◽  
Project Costs ◽  
Type Size ◽  
The Cost ◽  
The Impact ◽  
One Way Anova

Variation orders are an on-going phenomenon in construction and industry projects worldwide, particularly in the province of Sulaimani, where the project's damage from cost and schedule overrun because of variation orders. However, the effect on project costs and time overrun of variation order has yet to be identified. This study evaluates the impact of variation orders on the cost and time off in the Sulaimani governorate. Two hundred twenty-eight projects from various construction sectors built between 2007-2012 were adopted to calculate the contract cost and schedule overruns due to variation orders. Data analysis was applied in the study were descriptive statistics. One-way ANOVA was also applied to determine whether the overrun of project cost and schedule significantly varied depending on project type, size, duration, location, and awarded years. The findings indicated that cost overruns are very common due to variation orders. 95.6% of the projects were studied being impacted, and overrun in project cost are also huge, with 16%. Time also overruns more common than cost overruns due to the variation orders. 98.7% of the projects were studied in Sulaimani were affected by time overrun with an average of 46.3% of initial duration observed. Findings also indicated that two out of five parameters measured in the analysis had a significant correlation with project cost overruns. Three out of five considered variables correlated with construction time overruns. 

scholarly journals Cost overrun in construction projects in Oman: Case study

2021 ◽  
Vol 10 (3) ◽  
Author(s):  
Haitham Nasser Al Siyabi ◽  
Omar Khaleel
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Poor Quality ◽  
Building Construction ◽  
Cost Overrun ◽  
Survey Interviews ◽  
Original Contract ◽  
Major Factors ◽  
The Cost ◽  
The Impact

There are many challenges in construction industry sector, and one of the most important and critical is completion of the project within the original contract value. As the issue of cost overrun in construction projects is spread worldwide generally and commonly encountered in the Sultanate of Oman.The main objectives of this study are to identify and determine vital factors leading to cost overrun in Building Projects in Oman, evaluate the impact of cost overrun in building construction projects and develop the best protocol strategy for project management teams that can be adopted in order to control the cost overrun in future projects. These objectives have been obtained through several methods, questionnaire survey,interviews with experts in construction industry. Twenty nine major factors lead to cost overrun were identified through literature review and studied in Sultanate of Oman.The study concluded that there are three major impacts of cost overrun in construction projects and industry which are time of completion, delivery of poor quality projects and delay of payment approval. Additional to that, Hire good Supervision Team, a good Cost Controller, Project Manager, a good project design team, well planning for pre-contract stage and proper procurement strategy. Consider the Risk assessment and Risk Control are crucial to minimize the cost overrun in building construction project in Oman. The study have recommended procedure to cost control in future project such as the Employer should have a proper tender analysis of the Contractor’s bid, Detailed design should be finalized before award of work and others.

scholarly journals Causes and Effects of Cost Overrun on Construction Project in Bahrain: Part I (Ranking of Cost Overrun Factors and Risk Mapping)

2017 ◽  
Vol 11 (7) ◽  
pp. 20 ◽  
Author(s):  
Hedaya A. M. Abusafiya ◽  
Saad M. A. Suliman
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Construction Project ◽  
Extensive Literature ◽  
Cost Overrun ◽  
Construction Sector ◽  
Cost Performance ◽  
Expert Opinions ◽  
Schedule Delay ◽  
Design Changes

Cost performance is one of the basic criteria for measuring construction project success. Despite its proven importance it is not uncommon to see a construction project failing to achieve its objectives within the specified cost. The paper attempts to identify the major causes of cost overrun in Bahrain construction sector, and to assess the effect of these causes on cost overrun.  A list of these causes was collected through an extensive literature review, historical construction projects records and expert opinions. In total 45 factors were short-listed to be made part of questionnaire used in a survey conducted with representatives from local contracting, consulting, and client firms. Findings are presented in form of tables that classify cost overrun factors, and their ranking. The overall results showed that frequent design changes, mistakes during construction, and schedule delay were considered as the most important factors of cost overrun causes in Bahrain construction industry.

Impact of Utilizing Construction Engineering and Inspection Consultants on Highway Construction Project Cost and Schedule Performance

2019 ◽  
Vol 2673 (11) ◽  
pp. 716-725
Author(s):  
Ying Li ◽  
Sara Al-Haddad ◽  
Timothy R. B. Taylor ◽  
Paul M. Goodrum ◽  
Roy E. Sturgill
Keyword(s):  
Construction Projects ◽  
Highway Construction ◽  
Full Time ◽  
Cost Overrun ◽  
Full Time Equivalent ◽  
Agency Staff ◽  
Project Cost ◽  
Schedule Performance ◽  
Construction Project Cost ◽  
The Impact

State transportation agencies (STAs) are tasked with constructing and maintaining complex transportation networks while facing changes in agency construction staff with respect to age, experience level, turnover, retirement, and increasing levels of consulting services that are used to manage STA construction operations. To keep up with the increasing demands of projects, STAs are utilizing Construction and Engineering Inspection (CEI) consultants to fill the demand for construction-related human resources. However, the impact of using CEIs on project cost and schedule performance has not been quantified. The current work addresses this knowledge gap by analyzing a database of 305 completed highway construction projects across 16 STAs. The analysis found that projects that utilized CEI consultants had higher levels of full-time equivalent construction staffing than projects that utilized only agency staff. The use of CEI consultants had no impact on project cost compared with projects that relied solely on agency staff. Projects that used CEI consultants had an average cost overrun of 20.2% compared with agency-staffed projects, which experienced average schedule overruns of −7.7% (i.e., the project, on average, finished early). The schedule difference was statistically significant.

Investigation of Cost-Influencing Factors Potentially ‎Controllable by Main Contractors in Construction Projects in ‎Iraq

2020 ◽  
Vol 38 (7A) ◽  
pp. 1069-1076
Author(s):  
Layth T. Ali ◽  
Raid S. Abid Ali ◽  
Zeyad S. M. Khaled
Keyword(s):  
Construction Projects ◽  
Project Managers ◽  
Cost Overrun ◽  
Public And Private ◽  
Importance Index ◽  
Labor Recruitment ◽  
Supply Planning ◽  
Major Factors ◽  
And Control ◽  
The Impact

Cost overrun in construction projects is a common phenomenon in Iraq. This might occur due to diversity of factors. This study aims to identify the factors influencing construction projects cost that are potentially controllable by main contractors. A field study through a questionnaire survey was directed to a sample of related Iraqi professional engineers from general contracting companies at both public and private sectors. Their opinions on the impact and frequency of each factor were investigated. The questionnaire offered (59) factors classified in (8) categories namely; legislations, financial and economic, design, contractual, site management, material, labor and equipment. The factors were ranked according to the highest Relative Importance Index (RII). The study revealed (10) major factors that are potentially controllable by main contractors namely; labor productivity, sub-contractors and suppliers performance, equipment productivity, site organization and distribution of equipment, experience and training of project managers, scheduling and control techniques, planning for materials supply, planning for equipment supply, materials delivery and planning for skilled labor recruitment. Recommendations to aid contractors and owners in early identification of these factors are also included in this study.

Pound Wise and Penny Foolish? Weight Loss and The Dynamics of Health Care Spending

2011 ◽  
Vol 14 (2) ◽  
Author(s):  
Thomas G Koch
Keyword(s):  
Weight Loss ◽  
Cost Savings ◽  
Cost Effective ◽  
Economic Consequences ◽  
Health Care Spending ◽  
Order Of Magnitude ◽  
Dynamic Measures ◽  
The Cost ◽  
The Impact ◽  
The Relationship

Current estimates of obesity costs ignore the impact of future weight loss and gain, and may either over or underestimate economic consequences of weight loss. In light of this, I construct static and dynamic measures of medical costs associated with body mass index (BMI), to be balanced against the cost of one-time interventions. This study finds that ignoring the implications of weight loss and gain over time overstates the medical-cost savings of such interventions by an order of magnitude. When the relationship between spending and age is allowed to vary, weight-loss attempts appear to be cost-effective starting and ending with middle age. Some interventions recently proven to decrease weight may also be cost-effective.

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