scholarly journals ANALYSIS OF CAUSES OF COST OVERRUN IN COMMERCIAL PROJECTS IN EGYPT.

Construction sector is developing every year due to use of new technologies and need of skilled labours to perform required designs. Hence, it is becoming more critical to ensure proper management of construction works to complete the project according to assigned objectives and specifications. The success of any construction work relies mainly on cost, time, and quality of work. Hence, proper management was done in order to ensure completion of projects according to expected and assigned budget. Nevertheless, projects in developing countries are yet suffering from potential overrun of cost due to multiple factors. There are multiple authors in literature that indicated the main problems faced by projects that prevents them from completing the project according to expected budget (Apolot et al, 2012), and (Memon et al, 2012). Hence, it became quite urgent to investigate reasons that lead to overrun of cost in construction works. Therefore, the major goal of this study is to investigate sources of cost overrun in construction projects in Egypt. The study will concentrate mainly on commercial projects due to the fact that most of these projects are extremely expensive and would require proper management to prevent any increase in its cost. The method of data collection is a questionnaire survey that included risk factors collected from previous literature. The expected outcome will be in the form of estimating reasons that lead to cost overrun, and impact of cost increase on performance of construction projects.

2021 ◽  
Vol 13 (11) ◽  
pp. 5795
Author(s):  
Sławomir Biruk ◽  
Łukasz Rzepecki

Reducing the duration of construction works requires additional organizational measures, such as selecting construction methods that assure a shorter realization time, engaging additional resources, working overtime, or allowing construction works to be performed simultaneously in the same working units. The simultaneous work of crews may affect the quality of works and the efficiency of construction processes. This article presents a simulation model aimed at assessing the impact of the overlap period on the extension of the working time of the crews and the reduction of a repetitive project’s duration in random conditions. The purpose of simulation studies is to provide construction managers with guidelines when deciding on the dates of starting the sequential technological process lines realized by specialized working crews, for sustainable scheduling and organization of construction projects.


2018 ◽  
Vol 44 ◽  
pp. 00057
Author(s):  
Xeniya Malinina ◽  
Juriy Shamara ◽  
Zhanna Petukhova

In this article we carry out the analysis of the possible directions and consequences of transformations of the existing models for implementation of investment-construction projects in relation with integration of information technologies and the construction industry in modern Russia. Such integration is considered as the most useful tool to solve such chronicle problems of the construction industry as low quality of works, missed deadlines and sustaining the best ratio “price-quality” for the customer. The basis for such integration is the technologies of informational modeling of construction objects. We investigated two basic models: disintegrated purchases and integrated purchases whose transformation will be directed towards development of mechanisms of partnership between participants of investment-construction projects, expanded use of “integrated” contracts in the system of state purchases of construction works and further centralization of control in the system of construction for state purposes.


2015 ◽  
Vol 749 ◽  
pp. 410-414
Author(s):  
Hayroman Ahmad ◽  
Abdul Rashid Abdul Aziz ◽  
Mastura Jaafar

Over the past few decades, doubts among construction researchers arise about how hospital project success is measured. However, only some general consensus of that matter was agreed upon. Therefore, the aim of this study is to identify the holistic success criteria (SC) of public hospital construction projects. This article describes the criteria, which then conceptually classified the SC into five, which are meeting client requirements; meeting for management of construction goals; meeting for production of construction goals; benefit to the project teams (D&B contractors) developments; and benefiting the community. Every SC describes a set of problem statements as well as dimensions which were based on the following issues: unsatisfactory product quality; prolong of completion period; cost overrun; unsafe site condition; clients’ dissatisfaction; and non-benefit to the community. To realise the objective, questionnaire survey was distributed to the client (Ministry of Health, Malaysia and client’s project manager) and D&B contractors throughout Malaysia. The raw data were analysed using factor analysis (FA) method reduced the variables from 93 items to only 16. Principal components analysis (PCA) procedure considered only the factor loading with a value of 0.500 and above. Each component underwent a process of reliability analysis (RA) with the overall value of Cronbach’s alpha of more than 0.700. Result was found that a set of new measure consisting 16 variables called SC measures were determined. Generally, it covered efficiency of the process and effectiveness of the product. The major limitation of the study was that the key players of the project always changed and most of projects were 95% completed. However, it is important to understand that most of the construction projects are project-basis with temporary organisation. Therefore, extra effort should be emphasised to enhance the quality of the data collected and more research should be done to overcome the issues which still grow concurrent with the development.


Author(s):  
Yang Yang ◽  
Albert P. C. Chan ◽  
Ming Shan ◽  
Ran Gao ◽  
Fengyu Bao ◽  
...  

The Coronavirus disease 2019 (COVID-19) pandemic has resulted in significant delays and cost overrun in construction projects. The implementation of health and safety (H&S) technologies is one of the most important strategies to alleviate the adverse impacts of COVID-19 on the construction industry and help the industry adapt to the new normal. This study aims to evaluate the adoption of H&S technologies for pandemic management in the construction sector under the COVID-19 pandemic. Semi-structured interviews with eighteen practitioners engaged from construction companies and technology firms were conducted to collect their views on the driving forces and issues of the adoption of H&S technologies for pandemic management in Chinese construction projects. The results reveal that the major H&S technologies used included the health quick response (QR) code system, artificial intelligence (AI)-powered fever monitoring, and site access control system. These technologies were reported to be effective in preventing the spread of the pandemic in workplaces. The findings of the study amplify that the pandemic may serve as an acceleration of the adoption of H&S technologies in the construction sector. Other technologies, such as building information modeling, drones, AI-based safety monitoring, and robotics, however, were seldom used in the studied projects. The interviewees addressed several problems regarding the implementation of these technologies. High costs of technologies, a lack of client support, and disruptions to the normal work process were the main hurdles of the adoption of these technologies. The results indicated that the external influence factor—the COVID-19 pandemic—could considerably drive the use of H&S technologies, whereas the internal influence factors—cost and compatibility of technology—might be the major barriers to technology adoption. To encourage the wider use of H&S technologies in construction, the government is recommended to support the technology transformation by granting financial subsidies for costs involved in innovation adoption. Project owners may consider investing substantially in H&S technologies that can strengthen their resilient and innovative ability to adapt to the post-COVID-19 landscape. The present results will be useful to industry stakeholders and researchers interested in developing H&S technologies for combating the COVID-19 pandemic and future crises.


2019 ◽  
Vol 65 (1) ◽  
pp. 181-195 ◽  
Author(s):  
G. Śladowski ◽  
E. Radziszewska-Zielina ◽  
E. Kania

AbstractThe article highlights the fact that numerous key decisions in temporary construction organisations are made as a result of informal, non-contractual relationships between organisation members that are not a result of formal organisational structures. These hidden relationships can be visualised in the form of social networks and Social Network Analysis methods (SNA) can be used to perform their structural analysis. In latest studies on self-organising networks in the construction sector, researchers have mostly focused on the design phase of large construction projects, e.g. infrastructural ones. Meanwhile, there exists a need for similar research to focus on temporary organisations created for the purpose of performing construction work. The authors took up this subject and examined a self-organising network of communication between the participants of the construction of a multi-family residential complex located in Katowice, Poland. The structural analysis of this network facilitated its in-depth understanding and identifying certain flaws and dysfunctions concerning individual participants of this project, which became a basis for further discussion. At the same time, the authors highlighted the benefits of managing such a self-organising network in the context of the effective achievement of project goals.


2021 ◽  
Vol 23 (1) ◽  
pp. 236-245
Author(s):  
T. Dudnyk ◽  
L. Chintea

Currently, forensic methods and regulations in the field of construction do not explain how quality of work affects the procedure of forensic examinations and research related to determining the work scope. While carrying out building and renovation services, it is possible to control provided construction and renovation services,  establish their physical volume and quality. While research, forensic expert can identify violations of building codes, as well as determine the cost of refurbishment or elimination of defects made providing services. The scoop of performed works is determined by geometric parameters of construction elements, established during field surveys using design and as-built documentation. While carrying out field surveys, it is necessary (along with the determination of service scope) to pay attention to the compliance of the work performed with the requirements of building codes. The article outlines problematic issues and provides a list of basic indicators determining the scoop and quality of the construction works carried out, indicated in the reporting documentation drawn up by contractors based on results of activities in the field of construction. Actual issue arising in the establishment of the scoop and cost of construction work is considered  that quality does not meet the requirements of regulatory documents in the field of construction. It is explained how the quality of the work performed affects the results of research related to the determination of the actually completed volumes of repair, building and renovation and construction work.


Author(s):  
Abdul Qadir Memon ◽  
◽  
Aftab Hameed Memon ◽  
Mohsin Ali Soomro ◽  
◽  
...  

This paper assessed the occurrence and severity level of various factors causing time and cost overrun in construction projects of Pakistan. Investigation was carried out through questionnaire form prepared based on 55 common factors identified from literature. Survey was done amongst the representatives of the contractors involved in handling construction activities in Pakistan. A total of 46 responses gathered against 100 distributed forms were analysed statistically. The results obtained from the analyses based on Average Index values revealed that delay in obtaining permits from the governmental agencies, financial difficulties are common issue faced in construction works of Pakistan. The study also revealed that high cost of machinery & its maintenance, inadequate planning & scheduling and slow information flow between parties have significant effect on time overrun cost while critical factors affecting cost overrun are high cost of machinery & its maintenance, unsuitable construction methods and lack of experience of contractors in affecting project cost. The findings of this study will be helpful for the practitioner in planning for achieving timely completion of the projects and also within the estimated cost.


2021 ◽  
Vol 7 (1) ◽  
pp. 335-339
Author(s):  
A. Abdullaev

This article discusses scenarios for determining priorities and prospects for the development of small business and private entrepreneurship in the construction industry, and also gives recommendations for increasing the volume of construction work. Thus, according to our analysis, the main factors affecting the development of the construction industry in the Tashkent region are industrial development, nominal wages, population and investment in fixed assets, and the main difference in these indicators in regional units is considered a serious problem. According to the results of the developed scenario, reducing the gap between these indicators in regional units will increase the annual growth rate of construction and installation work from 10.1% to 23.9%, which, in turn, will increase the number of builders in the construction sector by 242 units. As a General conclusion, the organization of payments between the manufacturer and the customer when purchasing products in the construction industry affects the development of the network, as well as CBS. In addition, gradual payment by the customer based on payment for completed construction works will play an important role in the development of market legislation in the industry, the elimination of monopolies and the development of IFRS.


2022 ◽  
Vol 24 (1) ◽  
pp. 253-260
Author(s):  
Ashenafi Reta ◽  
◽  
Ashebir Alyew ◽  

Identifying the effects of low bid award system in construction projects can be used as benchmark to find alternative method to low bid award system in the future of construction industry. The results of questioner survey conducted to determine the effects of awarding lowest bid award system in construction projects of Ethiopian southern nation are presented in this study. Personnel from consultants, owners and contractors are among the survey`s respondent. The result of the study outlines promote transparency, avoid fraud and corruption, promoting competition amongst contractors, excessive time overrun, compromise quality and hindering profitability of contractors as the top ranked effects of low bid award system. Construction industry participants have started recognizing that accepting the least price bid does not guarantee maximum value. Achieving a value-based procurement approach is a challenge, particularly for the Pakistani public sector clients, who are limited in their ability to evaluate the competitive bids based solely on the lowest-bid award system. Persisting problems of inferior quality of constructed facilities, high incidence of claims and litigation, and frequent cost and schedule overruns have become the main features of public construction works contracts. This research was undertaken to assess the performance of public owned construction projects awarded on a lowest bidder bid awarding system.


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