Effects due to Change in UAE Construction Projects

Globally construction works are suffering from several challenges. One of the major challenges is changes during execution of the construction work. Changes exert several negative impacts on the project performance. For effective project performance, it is necessary to understand the effects of changes. Hence, this study investigated various effects of changes occurring in construction project. Investigation was carried out quantitatively through questionnaire survey based on effect variables identified from review of literature. It involved three categories as time overrun, cost overrun and quality measured with 48 variables. 100 questionnaire sets collected against 218 questionnaire forms distributed among the practitioners were analysed statistically. From analysis results, it was found that cost overrun is major effect of changes followed by quality and time overrun. Delay in completion schedule, slower project progress and dispute between owner and contractor are reported as major drivers of time overrun. Top three variables of cost overrun in cost overrun are increase the cost of the projects, interrupted cash flow and additional money for contractor. While, major drivers of the quality in construction projects are rework of bad quality performance, changes in materials specifications and changes in material types & specifications during construction. These findings will be helpful for the practitioners in achieving project performance.

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Model of Predicting Cost Overrun in Construction Projects

Sustainability ◽

10.3390/su10124387 ◽

2018 ◽

Vol 10 (12) ◽

pp. 4387 ◽

Cited By ~ 10

Author(s):

Edyta Plebankiewicz

Keyword(s):

Prediction Model ◽

Cash Flow ◽

Construction Projects ◽

Cost Overrun ◽

Fuzzy Relations ◽

Inference Method ◽

Total Cost ◽

The Cost ◽

Selection Of ◽

Construction Works

During the construction phase, significant differences between the planned and actual costs of construction projects frequently occur. The paper describes the concept of a model of prediction of the increase in the costs of construction works in relation to those planned. The assumption of the model is to determine the probability of the cost increase for the elements of the object for which it is the largest. A fuzzy Mamdani inference method was proposed for the selection of the elements to be evaluated. In the cost prediction model, fuzzy relations and the compound max-min relations were used. The result of the model are the probabilities of cost overrun for works most exposed to changes in costs. The model can be helpful mainly for the contractor who wants to know not only the probability of the total cost overrun but also the possibility and amount of increase in the costs of individual packages of works or detailed construction works necessary to complete a construction project. Such an approach may help to properly plan expenses related to the implementation and schedule of works along with the cash flow for the project.

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Delay and cost overrun in road construction projects in Jordan

International Journal of Engineering & Technology ◽

10.14419/ijet.v4i2.4409 ◽

2015 ◽

Vol 4 (2) ◽

pp. 288 ◽

Cited By ~ 11

Author(s):

Nabil Al-Hazim ◽

Zaydoun Abusalem

Keyword(s):

Construction Projects ◽

Road Construction ◽

Weather Conditions ◽

Public Works ◽

Fiscal Year ◽

Cost Overrun ◽

Construction Time ◽

Change Orders ◽

Critical Problems ◽

The Cost

This study aims to identify the most important factors that cause delay in road construction projects in Jordan, which results in cost and time overrun allocated for this type of engineering projects and cause critical problems for both the developer and the contractor. The gap between the cost at completion and that originally estimated, known as cost overrun, can be regarded as one of the most important parameters reflecting the success of projects. In the public sector, money spent on project change orders results in increased construction time which in return reduces the number and size of the projects that can be completed during any given fiscal year. To achieve this goal, the documents and the final reports for several sample projects implemented over the years 2000 to 2008 were analyzed. All the projects were administered by the same organization taken from Jordan Ministry of Rural and Public Works. The results of this study can assist highway officials in their design, planning, scheduling and projects completions so that necessary actions can be taken to control these overruns in future projects. The study showed that 19 factors might cause delays of road construction projects as defined through a detailed literature review. The analysis of the study indicated that the top causes affecting time and cost overrun in road construction projects in Jordan are Terrain and Weather conditions.

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ANALISIS KETERLAMBATAN PROYEK SERTA DAMPAKNYA TERHADAP BIAYA DAN WAKTU PELAKSANAAN PROYEK

Jurnal Infrastruktur ◽

10.35814/infrastruktur.v5i1.614 ◽

2019 ◽

Vol 5 (1) ◽

pp. 13-19

Author(s):

Fitri Nur Kharina ◽

Kusno Adi Sambowo

Keyword(s):

Construction Projects ◽

Construction Project ◽

Project Performance ◽

Project Work ◽

Earned Value ◽

Time Period ◽

Review Period ◽

The Difference ◽

The Cost ◽

The Impact

Construction projects in all regions continues to be developed for the creation of facilities that can be utilized by the community. One of them is the construction of apartments which are now being intensively carried out to meet residential needs for the community. Making a construction project plan always refers to estimates that exist at the time development plan is made, therefore problems can arise if there is a discrepancy between the plans that have been made and the actual reality. So the impact that often occurs is the delay in the time of project implementation which can also be accompanied by an increase in the cost of implementing the project. In the construction project of Cinere Terrace Suites Apartemen & Citywalk, Jakarta there was a delay resulting in a late payment of monthly bill progress by the owner. Based on the above reasons, this research was conducted to find out how the project performance was seen from the cost and time period of the review period. how is the estimated cost and time to complete the overall project work. The method used in the analysis of this study is the Earned Value Method. Based on the results of the analysis carried out for 29 weeks the project performance on schedule has been delayed and cost shows a positive value. For the estimated completion time of the project there is an increase in time whose duration increases from the planned 98 weeks or 685 days to 109,624 weeks or 768 days. While the estimated cost of completing the project from the results of the analysis obtained a value of Rp. 270,147,448,569.16 smaller than the planned cost of Rp. 315,272,727,272.73. With the difference VAC of Rp. 45,125,278,703.57 this shows that there are benefits obtained by the contractor.

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Influence of rebar practice in the total cost of building construction projects: The case of Hawassa city, Ethiopia

International Journal of Engineering Science and Technology ◽

10.4314/ijest.v12i1.5 ◽

2020 ◽

Vol 12 (1) ◽

pp. 54-65

Author(s):

Tariku Nigussie ◽

M.K. Chandrasekar

Keyword(s):

Construction Projects ◽

Cost Overrun ◽

Value Analysis ◽

Total Cost ◽

Correlation And Regression Analysis ◽

Central Value ◽

Research Designs ◽

Analytical Research ◽

The Cost ◽

Bill Of Quantity

Rebar is one of the materials which is so scarce and highly expensive. The existing practices produce a large quantity of wastage; which contributes to the increment of the project cost. This study aimed to analyze the causes, extent, and remedies of steel wastages on the total costs of construction projects in Hawassa city. The study followed descriptive and analytical research designs. The cost estimated in the bill of quantity and the final cost after the provision of the steel with alterations was compared and the reasons for cost overrun were analyzed. The data were analyzed using Central value analysis, correlation and regression analysis using SPSS stat20, RebarWin7.97, ETABS2016. The percentage of the cost of steel wastage in total cost was found 1.43%. The result of the study verdict that frequent design change and bare-benders skill gap contribute much to the material wastage, thus for the cost overrun of projects. Keywords: Bending gain, cost overrun, detailing, rebar, redesign, steel, wastage

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CONTRACTS EVALUATION THROUGH CLASSIFIED REWORK ROOT CAUSES IN THE CONSTRUCTION STAGE OF PROJECTS

Proceedings of International Structural Engineering and Construction ◽

10.14455/isec.2020.7(2).con-21 ◽

2020 ◽

Vol 7 (2) ◽

Author(s):

Ramin Asadi ◽

Suzanne Wilkinson ◽

James Olabode Bamidele Rotimi

Keyword(s):

Construction Industry ◽

Construction Projects ◽

Project Performance ◽

Mitigation Measures ◽

Rational Approach ◽

Review Of Literature ◽

Construction Stage ◽

Financial Factors ◽

Resource Material ◽

The Relationship

Rework occurs across the life cycle of projects and has significant impacts on construction project performance. A rational approach to managing rework is by identifying the main sources of rework; then mitigation measures can be implemented to enhance performance on projects. Rework has been widely studied within the construction industry, but the link between rework and contract conditions remain unexplored. This study identifies and classifies the root causes of rework at the construction stage of projects. It then examines the relationship between the conditions of contracts with the identified root causes. A comprehensive list of rework root causes was determined through the review of literature, which was categorized into five classified factors. The classified factors include process, human resource, material/equipment, technical, and other related environmental and financial factors. The next step comprises a questionnaire survey designed to determine relationships between rework and contracts. The result of the study is presented descriptively for ease of understanding. The results show that rework could be managed more efficiently through contracting processes, which ultimately benefits construction projects’ performance.

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Analysis of Time and Cost Overrun in Malaysian Construction

Advanced Materials Research ◽

10.4028/www.scientific.net/amr.452-453.1002 ◽

2012 ◽

Vol 452-453 ◽

pp. 1002-1008 ◽

Cited By ~ 12

Author(s):

Chidambaram Ramanathan ◽

Narayanan Sambu Potty ◽

Arazi B Idrus

Keyword(s):

Risk Factors ◽

Time Delay ◽

Construction Industry ◽

Construction Projects ◽

Project Performance ◽

Evaluation of Dispute Prone Areas in Construction Projects

Proceedings of International Web Conference in Civil Engineering for a Sustainable Planet ◽

10.21467/proceedings.112.8 ◽

2021 ◽

Author(s):

Manu Noushad ◽

Anu V. Thomas ◽

Ramaswamy K. P

Keyword(s):

Analytical Hierarchy Process ◽

Construction Projects ◽

Cost Overrun ◽

Cost Performance ◽

Research Findings ◽

The Cost ◽

Hierarchy Process

Construction projects experience claims and disputes due to increased complexity of contract documentation, which subsequently affects the cost performance of projects. Majority of the previous studies on disputes and cost overrun have mainly focused on finding the causes of cost overrun or disputes in the industry. Identification of dispute prone areas and the associated range of cost overrun due to the disputes are less explored. Previous research findings indicate that the various factors resulting in cost overrun itself are the causes of disputes. It is necessary to understand, assess and take appropriate actions for increasing the predictability of claims and disputes in order to improve the cost performance of construction projects. In this study, an attempt is made to identify and prioritize the dispute prone areas in Indian construction projects by analytical hierarchy process (AHP).

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Estimation of cost overrun in construction projects using Fuzzy Logic

Journal of University of Shanghai for Science and Technology ◽

10.51201/jusst/21/06496 ◽

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.

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Application of Value Management in Conception of Construction Projects in Rwanda

Regular Issue - International Journal of Innovative Science and Modern Engineering ◽

10.35940/ijisme.c1155.106319 ◽

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

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Contractor’s Perception on Factors Causing Cost Overrun in Construction Works of Pakistan

International Journal of Sustainable Construction Engineering Technology ◽

10.30880/ijscet.2020.11.03.009 ◽

2020 ◽

Vol 11 (3) ◽

Author(s):

Abdul Qadir Memon ◽

◽

Aftab Hameed Memon ◽

Mohsin Ali Soomro ◽

◽

...

Keyword(s):

Construction Projects ◽

Cost Overrun ◽

Critical Factors ◽

Factors Affecting ◽

Governmental Agencies ◽

Construction Methods ◽

Financial Difficulties ◽

Timely Completion ◽

Questionnaire Form ◽

Construction Works

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.

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