scholarly journals Performance and Management of Cost in the Construction Industry

2020 ◽  
Vol 6 (7) ◽  
pp. 1368-1374
Author(s):  
Fazal Ali Shaikh ◽  
Nasurullah Odhano ◽  
Suaathi Kaliannan
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Healthcare Management ◽  
Full Potential ◽  
Site Management ◽  
Gold Plating ◽  
Causative Factors ◽  
Poor Site ◽  
The Cost ◽  
Cost Aspect

In the arena of cost baselines and project budgets, the construction industry is always famed and controversial. Owing to the paucity of funds or maladministration at various levels, there is 90 percent of project delay is fully stranded. While being a major contributor to a country's Gross Domestic Product, its sufficient potentiality has never been tapped. Maybe this dismaying climate is created by the cold-hearted, reckless and unscrupulous attitudes of construction industry stakeholders. The main objectives of this research is to determine the genesis of exceeded budget/cost in construction projects that affect cost management and to suggest appropriate measures to harness the construction industry's full potential. The key drivers that have positive or negative repercussions on the cost aspect of the projects are the administration, pundits and consumers or holders. For assessing the most common causative factors of exceeded cost in construction projects, the authors organized interactive discussions with construction industry pundits, designers, architects, schematic experts, and manufacturers. Moreover, the incumbent concerns in the construction industry were analyzed and examined to examine important factors. To underscore the key motives that drive the projects, directly and indirectly, a questionnaire was dispensed between the participants on the analysis in the cost of undergoing projects. Results of the study are the key interpretations which were drawn from this research paper are fraud, weak political engrossment, poor site management, hampering of site deployment, consultants inflexible approach, gold plating, faulty safety and healthcare management system. To remove these hurdles, I have recommended appropriate guidelines for preventing, reducing or mitigating the effects of these factors.

Determining the Causes of Delay by Using Factor Analysis in Tehran’s Construction Projects

2015 ◽  
Vol 735 ◽  
pp. 109-116 ◽  
Author(s):  
Mahdi Rafieizonooz ◽  
Mohd Razman Salim ◽  
Elnaz Khankhaje ◽  
Mohd Warid Hussin ◽  
Ali Zarebidaki ◽  
...  
Keyword(s):  
Factor Analysis ◽  
Construction Industry ◽  
Construction Projects ◽  
Descriptive Analysis ◽  
Site Management ◽  
Critical Factors ◽  
Skilled Workers ◽  
Construction Contracts ◽  
Poor Site ◽  
Lack Of Commitment

Construction industry is one of the most profitable sectors in Iran’s economic. Delay is common problem in the construction projects in Iran. By considering all viewpoints of the parties, this research identified the most effective and severe causes of delay in construction projects in the Capital of Iran, Tehran. Questionnaires were distributed among respondents who are involved in the construction project in Tehran. The process of data analysis and discussions were conducted based on the two statistical techniques namely descriptive analysis (RII) and factor analysis. Using factor analysis, most critical factors of Tehran’s construction delay were recognized as: (1) lack of commitment; (2) inefficient site management; (3) poor site coordination; (4) Complexity in heritage and legislation; (5) Lack of estimation skills and skilled workers; (6) Lack of communication between parties; (7) Improper planning; and (8) Lack of clarity in contract. These results are anticipated to be important contributions to construction projects in Tehran in controlling the time overruns in construction contracts.

scholarly journals Contributing Cost Variation Factors in Highway Projects

2018 ◽  
Vol 4 (8) ◽  
pp. 1793
Author(s):  
Samiullah Sohu ◽  
Abd Halid Abdullah ◽  
Sasitharan Nagapan ◽  
Ashfaque Ahmed Jhatial ◽  
Muhammed Tahir
Keyword(s):  
Construction Industry ◽  
Cost Overrun ◽  
Site Management ◽  
Highway Projects ◽  
Building Projects ◽  
Cost Variation ◽  
Sindh Province ◽  
Causative Factors ◽  
Poor Site ◽  
Financial Issues

Cost overrun is known as when the final cost of any project surpasses the sectioned cost of the project at the floating of tender. Cost overrun or cost variation overrun is the main problem in the construction of highway projects in Sindh Province of Pakistan. To attain the main objective of the research a literature review was conducted and 64 general factors of cost overrun were found in construction industry. A questionnaire was developed and distributed among 28 well experienced experts having maximum experience in construction of building projects. Gathered data was analyzed by method of average index. Results shows that main and causative factors of cost variation were financial and cash issues faced by owner, slow information between parties, change in price of material, delay of design, poor site management, payment and financial issues problem faced by the contractor and delay in decision making. This research can help petitioners of highway projects to overcome these main and causative factors of cost.

PROBLEMS OF PROJECTS AND EFFECTS OF DELAYS IN THE CONSTRUCTION INDUSTRY OF PAKISTAN

2012 ◽  
Vol 01 (06) ◽  
pp. 41-50
Author(s):  
M. Haseeb ◽  
Xinhai Lu ◽  
Aneesa Bibi ◽  
Maloof-ud Dyian ◽  
Wahab Rabbani
Keyword(s):  
Construction Industry ◽  
Natural Disaster ◽  
Construction Projects ◽  
Common Factor ◽  
Construction Sector ◽  
Site Management ◽  
Time Performance ◽  
Poor Site ◽  
Project Delays

The problem of project delays is a fact that occurs mostly in construction industry of Pakistan. Delays are always measured as expensive to all parties concerned in the projects and very often it will result in clash, claims, total desertion and much difficult for the feasibility and it slows the growth of construction sector. For analyzing the causes of delay, an appraisal on construction project’s time performance was conducted. The main objective of this study is the identification of factors of delay and their effects on the success and completion of project. The most common factor of delay are natural disaster in Pakistan like flood and earthquake and some others like financial and payment problems, improper planning, poor site management, insufficient experience, shortage of materials and equipment etc. This paper covers the delay factors and causes of delay and some suggestion for reducing these delays in large construction projects in Pakistan.

scholarly journals DELAY AND COST INCREASE IN LARGE CONSTRUCTION PROJECTS OF IRAQ

2020 ◽  
Vol 3 (1) ◽  
pp. 57-61
Author(s):  
Zaynab Nadzhi Shakir
Keyword(s):  
Project Management ◽  
Construction Projects ◽  
Site Management ◽  
Industrial Construction ◽  
Factors Affecting ◽  
Financial Difficulties ◽  
Design Changes ◽  
Poor Site ◽  
The Cost ◽  
Causes Of Delays

the planned cost and duration of the project are two criteria for a successful project and successful project management. In Iraq, construction projects regularly faced delays and cost increases. The purpose of this study is to identify and rank the causes of delays and cost increases, in terms of their degree of occurrence, severity and importance. Objectives of the study: the study of the reasons leading to excess cost and duration Research technique: a questionnaire was used to identify the causes of this situation. The questionnaire was compiled through a survey of 57 Iraqi construction experts. Twenty reasons for delays and cost increases corresponding to the construction and industrial construction projects were identified and ranked in terms of importance. Statistical analysis was performed using SPSS packages. Conclusions: The results showed that the main factors affecting the cost and duration of the project are: financial difficulties of the owner (77.61%), poor site management (77.1%), financial difficulties of the contractor (70.0%), poor assistance in project management (76.9%), design changes (76.7%). Spearman's correlation tests showed that there were no differences in views between the three main participants in the project. These results may encourage practitioners to focus on the problem of delay and the increase in value that may exist in their current or future projects.

scholarly journals Analysis Of The Impact Of The Covid-19 Pandemic On The Construction Industry Sector

Neutron ◽  
2022 ◽  
Vol 21 (2) ◽  
pp. 52-59
Author(s):  
Liliana Hannes ◽  
Julistyana Tistogondo
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Construction Project ◽  
Construction Materials ◽  
Industry Sector ◽  
Independent Variable ◽  
The Cost ◽  
The Impact ◽  
Cost Aspect

Accelerating infrastructure development in Indonesia is a good thing, but this is not without problems. The COVID-19 pandemic is a problem that has a large and global impact, not least in Indonesia, especially in the construction industry sector. The construction project of the Soedono Madiun Hospital is one of the construction projects that have experienced the direct impact of the COVID-19 pandemic. Therefore, the purpose of this study is to review and analyze the impact of the covid-19 pandemic on construction projects in the case study of the construction project of the Soedono Madiun Hospital, and to find out the biggest impact of the covid-19 pandemic which has the most influence on construction projects in the case study of the construction project of the Soedono Hospital. Madison. The research method used to determine the biggest impact of the covid-19 pandemic on the cost and time aspects is the multiple linear regression analysis method with the help of Microsoft Excel. The other data analysis methods used in this study were the validity and reliability tests used in testing the questionnaire. The results of data analysis conducted in this study indicate that there are seven independent variables affect the dependent variable, namely the suitability of planning and project realization with the equation y= 94.186-0.376x1-0.108x2-1.014x3+0.873x4 for the time aspect, and the equation y=87,009 -0.0006x5-0.001x6-0.0002x7 for the cost aspect. With this equation, it can be seen that the independent variable that has the most influence on the dependent variable on the time aspect is the independent variable X3, namely the change in the time schedule due to delays in the arrival of construction materials by 1.014, while in the cost aspect is the independent variable X6, namely changes in costs due to instability. the price of construction materials is 0.001. So, it is hoped that there will be a project management handling that focuses on the most influential variable, namely construction materials.

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 Adoptability of Lean Construction Techniques in Pakistan’s Construction Industry

2018 ◽  
Vol 4 (10) ◽  
pp. 2328
Author(s):  
Aftab Hameed Memon ◽  
Muhammad Akram Akhund ◽  
Abdul Nasir Laghari ◽  
Hafiz Usama Imad ◽  
Shadab Noor Bhangwar
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Minimum Cost ◽  
Lean Construction ◽  
Global Trends ◽  
Lean Practices ◽  
Wide Range ◽  
Local Construction ◽  
The Cost ◽  
Tools And Techniques

There is a philosophy in the construction industry to reduce the cost of a project by reducing construction waste and improving productivity. With lower expenses, lean construction emphasizes the cost of the project at a minimum cost. Globally, the philosophy has gained a wide range of popularity in the construction sector. The Lean Construction has helped practitioners with several tools and techniques to implement at different stages of a construction project. Following global trends, this study has investigated lean practices in Pakistan. With the potential advantages experienced by its implementation in Pakistan's construction projects and the level of implementation of various types of tools and techniques has been analyzed. To achieve the goal, the study had tried to capture construction projects in which four shareholders are being represented, which are clients, consultants, contractors and material suppliers. Overall 34 completed questionnaires were collected and then analyzed. The results of the analysis have indicated that pull approach, standard of work, time consuming, visualization tools, the integrated project delivery methods and the quality failure in safe limits are common lean techniques which are being implemented to the local construction industry. While there are major benefits of waste reduction, client satisfaction, better communication, visual control and proper task management to build appropriate work are the key benefits of lean construction.

scholarly journals Application of Value Management in Conception of Construction Projects in Rwanda

2019 ◽  
Vol 6 (3) ◽  
pp. 1-6
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Project Performance ◽  
Survey Method ◽  
Value Management ◽  
Maximum Output ◽  
Value For Money ◽  
Mandatory Requirement ◽  
Professional Practitioners ◽  
The Cost

Value Management (VM) and Value Engineering (VE) are techniques concerned with defining, maximizing and achieving “value for money”. It should be noted that VM is not about reducing the cost but about adding value and where necessary the cost can be added to achieve value. Despite its proven significance in securing maximum output from limited resources, this approach is not a common practice in Rwanda’s construction Industry. This study therefore defines VM and describes all the processes and techniques involved in it. The merits and demerits of VM process in construction projects are discussed in details and relevance of its uses is discussed and recommended in consideration of the scope and complexity of the projects as well as the risks involved. While the benefits of a value management review are often perceived in terms of improved quality and reduced cost, this report discusses the exercise as a functional mechanism to measure value, taking into account monetary and non-monetary benefits and thus demonstrating value for money. While the author has not been able to obtain relevant literature on VM practice in Rwanda, It can be deduced from the review of the related literature that most of the evaluation techniques conducted for construction projects in developing world have mostly relied on evaluation of project performance in terms of cost, quality, delivery and progress. Since project evaluation is carried out after the work has been undertaken, the output of the analysis will just give the client an indication or a good understanding of the project performance. Such evaluations only reveal the competence or incompetence of the project participants instead of providing value for money which is addressed by VM practice which is an ex-ante analysis that takes into consideration of all value parameters. The study used a quantitative survey method of research to obtain responses from professional practitioners in construction industry in Rwanda. The sample size of 115 were selected from members of professional practitioners in the construction industry out of which 106 members were responsive. Finally, it is concluded that VM approach is not used in construction industry in Rwanda and recommended that VM practice be adopted in construction industry in Rwanda as a mandatory requirement for conception of all construction projects with a budget of $20M and above

scholarly journals Causes of construction delay from contractors and suppliers in Thailand's oil and gas platform projects

2018 ◽  
Vol 192 ◽  
pp. 02008
Author(s):  
Pittayaporn Gomarn ◽  
Jakrapong Pongpeng
Keyword(s):  
Construction Projects ◽  
Oil And Gas ◽  
Site Management ◽  
Planning And Scheduling ◽  
Confirmatory Factor ◽  
Low Efficiency ◽  
Communication And Coordination ◽  
Poor Site ◽  
Procurement System ◽  
Price Escalation

Construction project delays caused by contractors and suppliers are the top problems in Thailand's oil and gas industries. Recognizing this importance and their relationships between factors can help reduce the risk of delays in construction projects. Therefore, this study set out to confirm factors and inspect relationships between delay factors of contractors and suppliers. A 16 item questionnaire survey was distributed to 134 managers, engineers, and supervisors in oil and gas platform construction projects in Thailand. A confirmatory factor analysis (CFA) was performed by the use of Amos Version 20 software program. The analysis results showed that delays caused by the contractors and suppliers had high relationships, due to high regression weighs. The delays caused by the contractors included seven factors which included poor site management and supervision (17%), lack of safety rules and regulations (16%), poor communication and coordination with others (15%), poor procurement system management (15%), defective components and mistakes during construction (14%), supplier payments lateness (13%), and poor planning and scheduling (10%). The delays caused by the suppliers included six factors which included the supply of unqualified and unskilled personnel (22%), supply of low efficiency equipment (20%), late delivery of materials and equipment (20%), supply of low quality materials (16%), late supply of workers (16%), and price escalation (5%).

Causes of delays on construction projects: a comprehensive list

2019 ◽  
Vol 13 (1) ◽  
pp. 20-46 ◽  
Author(s):  
Serdar Durdyev ◽  
M. Reza Hosseini
Keyword(s):  
Construction Projects ◽  
Research Output ◽  
Site Management ◽  
Content Type ◽  
Climate Conditions ◽  
Control Factors ◽  
Number Of Publications ◽  
Poor Site ◽  
Causes Of Delays ◽  
Insight Into

Purpose The purpose of this paper is to present a systematic review of studies on CPD published between 1985 and 2018. Design/methodology/approach Before identifying common CPD, research trends were examined in terms of the number of publications in selected journals, as well as the contributions made by countries, institutions and researchers. Findings The findings reveal that researchers from developing countries have contributed the most to identifying the causes of CPD. A total of 149 causes of CPD were identified in a thorough review of 97 selected studies. Weather/climate conditions, poor communication, lack of coordination and conflicts between stakeholders, ineffective or improper planning, material shortages, financial problems, payment delays, equipment/plant shortage, lack of experience/qualification/competence among project stakeholders, labour shortages and poor site management were identified as the ten most common CPDs. Originality/value Being the first study of its type, this study provides insight into the research output related to this area and identifies a common set of CPDs, which may provide a better understanding of the key areas requiring attention where steps should be taken to minimise or control factors causing delays in construction projects.

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